Traditional Chits Vs. eChits
Traditional Chits Vs. eChits
In our previous articles, we have made a clear comparison of how chits are a safe option for savings. We also made a caution that registered chits only provide you the much needed security. In this article, we will make a quick comparison of chits and eChits. For the benefit of the audience, we will define both the terms:
Traditional Chits: Chit is a sort of community funding where a group of individuals come together, contribute a predefined amount every month (period) and one person among the group will take the lump sum. This process will continue till all the group members get the amount. This is traditional way of doing chits.
eChits: The same process enabled on technology to create transparency and trust are termed as eChits. With the advancement of technology and mobiles, chits have gone digital with anytime, anywhere access. MyPaisaa is one of India’s first digital chit fund company.
Here is a quick comparison between a traditional chit and an eChit
|Traditional Chits||eChits (IBG eChits)|
|TRUST is the BIG Issue||Our core principal is TRUST and TRANSPERANCY.|
|Joining formalities are opaque / Not clear||Joining formalities are opaque / Not clear Everything related to your Chit process is clearly explained before joining. We do Welcome call to customer from a recorded line and explain all the details abt the chit before starting the group.|
|You need to depend on the foreman / Agent for everything that matters in Chit and visit branches multiple times.||Auctions, Payments, Service, Trust and everything that matters is at your fingertips. No need to visit our office there by saving on your valuable time.|
|Auctions are conducted mostly in branches ONLY||You have the facility to bid ONLINE also along with going to branches. So now you can participate from your home/office or while travelling. Just open our app and start bidding|
|Auctions are conducted in most opaque manner||Auction is live and history can be accessed during entire chit period. No more Rigging of Auctions.|
|Lengthy and cumbersome Surety process. Only Govt employee sureties are accepted||Simple process. We do not insist on Govt employee surety. After 5th Month sureties are not required if your monthly income sufficiently satisfies chit payment.|
|Only one auction per month. Customer has to wait for a month for next chance. Moreover no Auction in second month. For ex. In first 3 months here customer will have only 2 auctions||Multiple auctions every month. Most of the time customer can get money in the same month of his/her need. For ex: In first 3 months here customer will have 5 auctions|
|Lot of random and adhoc charges||Very simple and small charge structure. Digital benefits are passed on to customer. For ex in a 5L-25 month chit, Rs 2500 benefit is passed on to customer by third month itself.|
|Chit information is not readily available||Complete chit info ( payments done, dividends, Bids) is available on your finger tips|
|You are not sure if the Chit is registered with the registrar or not||All the registration documents for each Chit are kept online. They can be easily accessed and verified through our app|
|Demands more time from you on activities||Everything can be done at your fingertips at your convenient time in a 24X7 scenario.|
|Service is not satisfactory to many subscribers||We have dedicated Customer service team - a first in industry|
|No means of planning your future bids||No means of planning your future bids You can plan your bids based on reinvestment options using our Bid calculator provided in our app.|
|No means for financial planning||Tools for financial planning and interest calculators available|
From the table it is quite evitable that eChits are a preferred option for the sake of convenience, transparency and trust. MyPaisaa being an pioneer in this aspect has adopted the latest technology platform on blockchain to service its customers significantly. For more information, you can visit us at www.mypaisaa.com or call us at +91 7795 665 154.