KDC Chits

How Chit Can Help You Save Money for Your Financial Goals


In today’s fast-paced world, achieving financial goals can often seem daunting. Whether it’s saving for a child’s education, a dream wedding, a business venture, or simply building an emergency fund, finding a reliable and efficient method to accumulate savings is crucial. One such method that has stood the test of time, especially in Kerala, is the chit fund. KDC Chits Company is here to help you understand how Chit Funds can be your trusted partner in reaching your financial aspirations without the need for collateral.

What Are Chit Funds?

Chit funds are a traditional and widely practiced financial instrument in India, particularly popular in Kerala. They serve as both a savings and borrowing mechanism. Members contribute a fixed amount of money at regular intervals into a pool. In each cycle, one member receives the pooled amount, either through an auction or a lottery system. This cycle continues until all members have received the pooled money once.

The Benefits of Chit Funds

  1. Dual Purpose: Saving and Borrowing Chit funds uniquely combine the benefits of saving and borrowing. Members regularly contribute a predetermined amount, instilling financial discipline. At the same time, they have the opportunity to access a lump sum amount during their tenure, which can be crucial for meeting significant expenses or investments.
  2. No Collateral Required One of the most compelling advantages of joining KDC Chits is that no collateral is required. This feature makes chit funds accessible to a broader audience, including individuals who might not have substantial assets to pledge. It democratizes access to credit and savings, empowering people from various financial backgrounds.
  3. Flexible and Adaptable KDC Chits offers a variety of schemes tailored to different financial needs. Whether you are saving for a specific goal like education, marriage, or starting a business, or simply looking to build a robust savings fund, there’s a scheme that fits your requirements. The flexibility in choosing the contribution amount and tenure allows members to align their chit fund participation with their financial goals.
  4. Community Trust and Reliability Chit funds operate on mutual trust and reliability. Being part of a community-based financial system, members often feel more secure and confident. KDC Chits, with its long-standing presence and reputation, ensures transparency and trustworthiness in all its operations, further enhancing member confidence.
  5. Financial Discipline Regular contributions to a chit fund encourage financial discipline. By committing to periodic payments, members cultivate a habit of saving, which is essential for achieving long-term financial goals. This disciplined approach helps in accumulating a significant corpus over time.

How Chit Funds Work: A Simple Example

Let’s say you join a chit fund with 20 members, each contributing ₹5,000 per month. Every month, the pooled amount of ₹1,00,000 is auctioned. Members bid for the amount, and the lowest bid wins. If a member wins the auction with a bid of ₹80,000, they receive this amount, and the remaining ₹20,000 is distributed among the members or kept as a commission by the chit fund company. This process continues until all members have received the pooled amount once.

Achieving Your Financial Goals with KDC Chits

  1. Education Savings Planning for a child’s education can be financially demanding. By joining a chit fund, you can systematically save a significant amount, ensuring that you have the necessary funds when needed.
  2. Wedding Expenses Weddings often come with substantial expenses. Chit funds provide a way to save and access a lump sum amount to cover these costs, allowing you to plan a memorable event without financial stress.
  3. Business Investment For entrepreneurs, accessing capital is crucial. Chit funds offer an excellent way to accumulate the required investment without needing collateral, enabling business growth and expansion.
  4. Emergency Fund an emergency fund is essential for financial security. Chit funds help you save regularly, ensuring that you have a financial cushion to fall back on during unforeseen circumstances.


Chit funds, with their dual benefits of saving and borrowing, no-collateral requirement, and flexible schemes, are a powerful financial tool. KDC Chits, with its trusted and transparent operations, stands out as a reliable partner in helping you achieve your financial goals. By joining a chit fund, you can instill financial discipline, access lump sum amounts when needed, and ultimately secure a brighter financial future.

Whether you’re planning for education, a wedding, a business venture, or simply looking to build an emergency fund, KDC Chits provides the perfect platform to turn your financial dreams into reality.

Check out our Services and Chit Schemes to know more and discover how our Chit Schemes can help you achieve financial stability and secure your future with flexible savings.

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