Chit Fund Companies

Chit funds have been an integral part of India’s financial sector, deeply embedded in the country’s cultural fabric given the social makeup of the local population. Since a big portion of the Indian populace works in the informal sector, attaining formal loans is a challenge for them. Chit funds level the playing field by offering financial products like loans and savings, as a single instrument, to these communities. Naturally, the demand for chit funds continues to remain high as a reliable source of accessing credit without stringent formal rules. Moreover, despite chit funds being subject of speculation, the tightening regulatory frameworks are enhancing consumer and investor confidence in them, giving a boost to the sector.