Being a Government recognized Chit fund company for over 20 years is a testimony that the subscribers’ investments have been safe and the operations trustworthy. The main motive of MCI (Bangalore) Chits Ltd. has always been to avail simple saving and borrowing schemes for all economy groups. Some important features of MCI (Bangalore) Chits Ltd. are
1. Subscriber’s protected under the Chit Fund Act 1982
2. Lower borrowing cost
3. Liquidity is easy
4. Easy payment options
5. Flexible investment plans
6. Transparent operations
Any individual can avail membership of MCI (Bangalore) Chits Ltd. after satisfying the KYC norms. However, it is important that you choose the right investment scheme that enables you to easily pay your monthly installments and as well as be able to produce security when you become a successful bidder.
MCI (Bangalore) Chits Ltd. offers a wide range of Chit schemes to cater to all economic groups. The Chit value starts at Rs. 1,00,000/- and goes up to Rs. 100,00,000/- with a monthly installment of Rs. 4,000/- to Rs. 4,00,000/-. All Chit values have 25 months Chit duration.
You can easily become a Subscriber of MCI (Bangalore) Chits Ltd., by visiting any of our offices or you could get in touch with our authorized Agents who will help you for the same. You will have to provide two recent passport size photos, identity proof, and latest permanent or correspondence address proof. Each subscriber will get a unique subscriber number and the Chit scheme they join also will have a different number. In times of queries or clarifications, subscribers need to give their Chit scheme number and their unique subscriber number.
You can enroll a maximum of 10% of the total tickets constituting the Chit group. However, Foreman has complete authority to accept or reject any applications.
Every month the subscriber will be intimated through SMS regarding the dividend earned and the amount payable. If you don’t receive SMS it is advised to raise a concern with the staff to ensure communications on time. However not receiving the SMS should not be the reason to delay your installment payments for the month.
You can pay at any of our branches by Cash, Cheque or Demand Draft as well as via A/C transfer. It is a must for subscribers to receive receipts for all the cash payments before leaving the cash counter. If you are making the payments online using Debit or Credit cards you will receive an e-receipt delivered to your mail.
If subscribers delay the payment beyond the last date, interest will be levied for the delayed days as per the company policy.
All subscribers who have successfully paid their installments are allowed to take part in the
auction. If you have made the payment by cheque, the cheque must be cleared and credited to MCI (Bangalore) Chits Ltd. bank account
before the auction date. The date and time of the auction will be informed at the start of the Chit scheme and continue
to be the same until the duration ends. If there is a holiday on the auction date, the auction will be held on the next
working day with no changes in timing.
If you are not able to take part in the auction, you can authorize a foreman to bid on behalf of you by giving him/her a proxy letter that clearly communicates your amount for bidding. The proxy letter details about the bidding will be kept confidential. You can also authorize a third person (not agents) to take part in the auction on behalf of you. To authorize a third person you will have to submit an authorization letter with the authorized person’s signature.
The auctions will take place in your respective branches and start with open bidding or
casting lots. You can bid for a minimum of 5% of the Chit value to a maximum of 40% of the Chit value each month.
You are required to bid in multiples of Rs. 100/- starting from the opening bid amount. The subscriber who bids the
highest will be declared a successful bidder and will receive the prize money i.e., the total Chit value minus the
bid amount. The bid amount minus the 5% of the Chit value (Foreman’s commission) will be divided among all the
subscribers in the group called as the dividend. The next month you will have to pay your installment minus the
In a case where more than one subscriber comes under the maximum bidding percentage allowed for the Chit value (40%) then the prize winner will be decided through lucky draw or lots. Any subscriber present in the group can pick a token to choose the winner.
If you haven’t subscribed to the prize money yet, you can give a written request to cancel your subscription to the respective Foreman. After your request is received by the foreman, he/she will wait for any other subscriber who is willing to take your place in the group. Note that your paid-up amount will be returned only at the end of the Chit duration or when the prize is won by the subscriber who has replaced you after making necessary deductions as mentioned in the agreement signed with you. There will be a cancellation charge of 7-14 percent on the Chit value.
● Investing in a Chit scheme keeps you prepared for any unexpected plans or situations
that may arise in your family or workplace.
● You can participate in the auction whenever there is a need for you to claim the prize amount.
● The returns from any Chit scheme majorly depend on the active participation of all the subscribers in bidding.
● The most important point of all this is that the cost of borrowing is cheaper than that of banks.
The Prize money for the winning subscriber will be transferred within a week after
30days from the bidding date. This time is taken to receive all the security documents for future
installments as per the company policies. Here are the security details you will need to submit:
● FD Pledge
● LIC Policies
● Bank Guarantee
● Postal Life Insurance
● Immovable Property
● NSC Pledge
It is not so. MCI (Bangalore) Chits Ltd., offers various security options for the subscribers as mentioned in the ‘Security’ page. Our security options are offered, keeping in mind the best interests of all our subscribers and company norms at large!
No. we at MCI (Bangalore) Chits Ltd., do not deduct TDS before disbursal. However, 5% of the Chit value will be deducted as Foreman’s commission or service tax from the prize money.