Karur Ashok Chit Funds TN(p) Ltd

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Rules & Regulations

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Rules - 1: Customers need not pay any entrance fee or document charges to become a member.
Rules - 2: Having submitted the application to become a member of a chit group, he need not pay the first installment amount immediately. The first installment amount should be paid only after receiving the notice from the company.
Rules - 3: After gathering the required number of subscribers for each group, the date of commencement of the chit group, installment amount, auction time etc.,will he communicated to the group members.
Rules - 4: Only those subscribers who have paid the chit installment amount can participate in the chit auction. The defaulters are not permitted to participate in the auction.
Rules - 5: Monthly installment can be paid either in cash or by cheque or demand draft or RTGS through NEFT
Rules - 6: A subscriber can himself participate in the auction or his authorized agent can participate. However the authorization should be documented.
Rules - 7: The Chit Fund Company charges 5% of chit value as commission. However the commission charged for the last month is only 2 1/2 % of the chit value.

Rule - 8

The dividend earned in each month is distributed equally among all the subscribers.

Rule - 9

Depending upon the dividend the subscribers may get 12% to 18% discount per month in our Company.

Rule - 10

The maximum discount or maximum bid permitted is only 30%. If two or more subscribers bid for the same amount, the successful bidder will be decided by draw.

Rule - 10

The maximum discount or maximum bid permitted is only 30%. If two or more subscribers bid for the same amount, the successful bidder will be decided by draw.

Rule - 11

If a member fails to pay the installment amount on or before the due date, he has to forego his dividend (discount).further depending upon the period of default, penal rate of interest will be charged.

Rule - 12

For each group ,auction will be conducted only from the second month of starting the group.

Rule - 13

For each group, the company fixes the time separately. If the fixed date happens to be a holiday or the auction could not be held due to unforseen reason, the company will intimate the change of date , time to all the subscribers.

Every subscriber who pays his installment amount on or before the due date will get 1% of discount