Customer Segments - What do they like in Chits?

Customer Segments - What do they like in Chits?

It is a tough job to classify the customer segments in chits market in India as chits are a quick saving tool for all types of people and they are customized as per the needs of the subscriber. However in this article, we try to make a broad segmentation of subscribers and help you understand what they like in chits. Their perceptions, experiences will be useful to all people looking to subscribe for chits.
We classify the subscribers into four segments:

Government Employees:

This subscriber segment resorts to mental accounting, or saving lump sum for specific pre-determined expenditures. Chit savings are common in this segment and thus viewed as a social norm since within such groups many partake in subscribing to chits. Reasons why they like chits are:

  • Lower wait for getting lump sum as compared to FDs and RDs.
  • Flexibility to borrow money if needed in short notice
  • Generating a lump sum for identified big expenditure like weddings, real estate, education expenses, etc.

Business Owners:

This subscriber segment is always on a continuous look out for quick savings for business expansion that also helps them to borrow money at a short notice. They normally tend to invest in big ticket chit schemes (5 lakhs and above). Social Profile also comes into play given the collectivist culture, long term use and thus, greater compliance. Reasons why they like chits are:

  • Lower maturity time as compared to FDs and RDs.
  • Flexibility to borrow money for large capital expenditures.
  • This segment is also a major participant in the registered chit fund sector for purposes of getting money faster.

Private Sector Employees:

This segment’s engagement is a result of motivating-uncertainty effect, meaning they look at chits as savings for emergency situations. Reasons they like chits are:

  • Saving up to a lump sum.
  • Flexibility to borrow money for emergencies.


This is a segment of yesterday that stayed away from chits. People born between 1981-2000 are defined as millennials in pop-culture. At 440 million, they form 34% of the Indian population and 46% of the workforce. Millennials do not think long term. They are single for longer periods and have fewer responsibilities. They are not a big fan of chits for the reason they look for convenience which the traditional registered chits don’t offer. With the dawn of eChits, they are slowly moving towards the concept of chits. This is a huge market to be tapped as this segment has the ability to invest and save for the future. Today with concept of eChits, they are open to learning and trying new financial avenues.
For more information, please write to us at