Turn your dreams into a reality

• What is a Chit?

Chit is a “Simple Product” which takes care of both the savings and borrowings needs of the customers.

• What are the security options available for taking Net Chit Value (Prize Money)?

• Gold Ornament – Gold ornaments can pledge (safe Custody with no interest) as security for the Future Liability (FL).
• Fixed Deposit– Fixed deposit of selected banks with lien marked in favour of Muthoot Pappachan Chits (I) Pvt Ltd, can be accepted as security
• Deposits of Group companies – Our group company deposit can be marked lien for FL.
• Bank Guarantee– Bank Guarantee letter from the bank and the expiry date of the letter should be 3 months after the termination of the chit group)
• Assignment of Life Insurance Policies – Original Policy & Surrender value certificate to be submitted.
• Paid up subscription – Pledging of Non-Prized Chit, where the paid-up amount in the Non-Prized chit should be more than the FL.
• Equity Shares/MF/Bonds – Selected Securities in demat form can be accepted
• Mortgage by Deposit of Title deeds- Local Urban property can be considered. Documents are Original sale deed, approved plan, link documents, EC for 13 years, latest TAX paid receipts, etc required. Property market/ valuation should be 150% of the FL.
• Personal Surety – Minimum of 3 personal surety and it may increase depending on the volume of future liability.


• Personal Surety can be of the below mentioned (or combination of below) …

• Permanent Local Government Servants each drawing an unencumbered minimum monthly basic pay as prescribed by the Foreman.
• Permanent local employees (PVT) in other Reputed companies and institutions, who have put in at least 7 years of service with Provident Fund, Gratuity and other benefits may also be accepted as sureties at the discretion of the Foreman. If all 3 are private employees, minimum 2 people should hold immovable property and provide photocopies of sales Deed with latest tax receipt.
• Businessmen having secured and established business for at least 10 years with documentary proof of business established, to the satisfaction of the Foreman. Only Businessmen who own immovable properties are acceptable on submission of photocopies of Sale deed with latest house tax receipt.

• What are the documents to be submitted by the customers?

At the time of Enrollment

• Recent 1 Passport Photo should be pasted in the filled, Signed KYC Form.
• ID Proof and Current Address Proof.

At the time of Prize Money Disbursement

• Income proof and other documents depends on the security option opted

• What are the benefits of a Chit product?
• Chit product helps in developing the Saving habit of the customers.
• No one can predict the fund emergency, it can raise up at any time in our life and during that time, Chit will be helping them to manage the fund emergency by availing money through monthly Chit auction on specified dates.
• Any person can accomplish his dream by opting Chits rather than availing any other loans.
• Chit product’s dividend depends on the dynamics of the groups. Chit dividend is better than interest of any deposit / Saving product.

• Which customer profiles will suit for Chits?
• Upper Lower, Middle, Higher & High Net worth Individuals.
• Salaried, Self Employed, Home Makers & Senior Citizens.

• Why a customer needs to select Muthoot Chits?
• Trust & Existence- Foreman Credibility is the biggest concern while considering investment in Chits.  Muthoot Pappachan Chits (India) Pvt Ltd, a group company under the flagship group Muthoot Pappachan Group is an ultimate answer
• Multiple Security Options - Apart from the other security, we accept Gold Ornaments, Shares/MF, Bonds etc. as security for Prize money disbursement.
• Customer has ease of operation, he can make the payment online, chit office and through MFL branches (collection agent).

• How to identify a suitable Chit group by a customer for enrollment?
• Firstly, we need to understand the Applicant’s Income and Expenses pattern.
• Calculate as like the below table and arrive customer’s comfortable CHIT Installment, then select the appropriate available chit group.

• How Chit Fund functions with an example?

• For example: 6000* 50 = 3 lac.

In this case Rs.6000 is monthly Installment, 50 is No of months and 3 lac is Chit value.
Always the Months & The Chit members of the group will be the same, so the members of the chit group will also be 50.
In this case the 1st Auction will always be opted by the Muthoot Pappachan Chits (I) Pvt Ltd because the Chit company has to deposit the Chit value of 3 lacs as Fixed deposit with their bank for 53 months for this example (3 months more than the Chit group tenure) and submit the receipt to the Registrar of Chits as a proof during PSO( Prior Sanction Order).

Only from the 2nd Auction, the bidding is open to the chit members and it’s an open auction, all the interested customer must come to the Chit Office Trivandrum/Bangalore/Chennai strictly before the auction time mentioned in the Chit agreement and participate in the auction.
If more than one customer chooses the maximum Bid % (that is 30 / 40 months group the maximum Bid is 30% and for 50 months group is 35%) .in such case the draw will be conducted and the winner is selected. After the completion of Security norms and documentation the prize money will be credited to the customer.

• What happens if customer discontinues a Non-Prized chit?

The Foreman commission of 5% of the Chit value with GST will be deducted. If any balance available, then the same will be settled only after the tenure completion.

• What are the Documents to be submitted by Subscriber / Sureties for getting prize money?

General :-

• Surety Form   with photos duly filled & signed by Subscriber & Sureties
• Identity / Age Proof – Copy of Aadhar Card / Voter ID / PAN Card / Passport (Self attested)
• Address Proof – Copy of Aadhar Card / Voter ID / Passport / Gas Bill / Electricity Bill / Mobile Bill (Self Attested) 
• Permanent Address Proof – Copy of Aadhar Card / Voter ID / Passport / Gas Bill / Electricity Bill / House Tax receipt (Self attested)
• Copy of House / Property - latest Tax paid receipt  
• Security Cheque duly signed by Subscriber / guarantor (s)

For Employees:

• Copy of Employee ID Card
• Computerized Pay slip / Salary Certificate (self-attested) / with disbursing officer attestation for latest 3 months
• Copy of Bank Account statement for latest one year (self-attested) – salary account
• Copy of Form No. 16 issued by Employer (for latest 3 years)

For business person/s:

• Copy of GST Certificate / Licenses / Govt approvals 
• Copy of Proof of business established for 10 years
• Copy of Bank Account statement for latest one (Self attested) – business account
• Copy of Audited Balance Sheet / Profit & Loss Account / adjusted statement of income certified by auditor, Sales tax assessment Order for latest 3 years
• Copy of Income Tax Return for latest 5 years with Acknowledgment / income computation (Self attested)

Note: Any other documents to the satisfaction of the Foreman.

• When can a customer participate for Auction?
• The customer is eligible for Chit group auction from 2nd month onwards.
• Before the auction the Chit member should have paid all his installments and there should not be any balance outstanding in his Chit account. If the customer has outstanding in his account, then he will not be eligible to participate in the auction.

• What are the ways available for a customer to participate in Auction?

Answer: There are 3 ways he can participate in Auction and they are as follows

• Attending the “Direct Participation” conducted in Chit office on the specified Date & time mentioned in the chit agreement.
• Second option is “Bid Offer Letter”, he can fill the complete details, sign it and send to Chit’s office.
• Third option is “Authorization Letter”, he can authorize another person to participate in auction, who comes with authorization letter & Attender’s ID proof.

•  How is Prize Money calculated?

Prize money = (Chit Value – (Bid Value + Handling Charges + 12% GST on Foreman commission)).

• When will the customer receive the Prize Money?

Answer: Once the security documents are submitted, the submitted documents will be verified and once the verification report is ‘Positive’, then the Prize Money will be settled to the customer after that the average TAT is 7 – 9 working days.