Chit Funds are such financial organisation which collects money from people and lured them to provide them with higher terms and returns. In this way mostly illiterate people deposit money in order to have higher amount of return. What it utimately did is that these companies are not registered with Government of India but the poor and illiterate does not know this and in this way after accumulating all of these money these companies moved away from that location within darkness and downtrodden and thei dreams in complete tatters.
Chit Funds theme are there in every house hold when people of some experience and honsety of that locality used to fund these money from the people and then lend these money to others and the money accured from these intrests equally divided among depositors during some holy occasion such as during Kumar Purnima or any related occasion.
All of these are going on for ages but most of these poeple are from the same locality and stays there for ages and those have honest propostion. Those persons who stays inside that location, knows that fund raiser so there is in noway one can escape from that location.
On the other hand when we do see and find information about chit fund cases those companies came from nowhere and people have hardly any idea about those companies and still, eple depend on them and believe them and that becomes extremely surprise denomination as funding money to an unknown institution itself one need to know about that in complete detail.
Poeple must check where that compnay and what are the origins of that compnay as this is a must for these people as their hard earned money is going to be invested here and for this one need to be extremely cautious about it and one should deeply check up the rigin and authenticity of that chit fund company in which they deposit their hard earned money for.
it is not the same as that of depositing the money with the person in your locality as you know that person but in the case with chit fund company one need to exactly and completely understand from where these companies have reached and what are the motives of these companies for.
If some one have no access to all of these then he or she could approach to the person whom they believe and investigate about that particular chit fund company and then move forward and find out whether these are the well established company or mere cheat companies aiming to cheat people through the gate of chit fund.