FAQs

Yes. VM Maruthi Chits is a legal chit fund investment company registered under the Chit Fund Act 1982. We follow all regulatory guidelines, ensuring complete transparency, documentation, and security for every member — giving you the peace of mind you deserve.

Every month, a reverse auction is held where members bid for the chit amount. The member who is willing to take the lowest amount (the highest discount) wins the pool for that month. The discount is then distributed among all other members as a dividend.

The dividend is the amount foregone by the winner of the monthly auction. After deducting our service commission, this amount is divided equally among all participants in the group, effectively reducing their next month's installment.

To join, we typically require basic KYC documents like Your Aadhaar Card, Pan Card, and a proof of residence. For high-value groups, additional income proof or surety might be requested during the payout phase.

We offer multiple payment options: in-person at our Hosur or Soolagiri offices, or through our free door-to-door chit collection service where our executives visit your home or shop — available as daily collection, weekly collection, or monthly installments. Secure bank transfers are also accepted.

Chit funds are a group commitment. While intermediate withdrawal is generally discouraged, you can transfer your membership to another eligible person with company approval.

Timely payments are crucial to maintain the group cycle. If a payment is missed, a small penalty may apply, and you will not be eligible to participate in the auction for that month or receive the dividend until dues are cleared.

Chit funds in India are not regulated by the RBI — they operate under the Chit Fund Act 1982, governed by state governments. VM Maruthi Chits is fully registered with the Registrar of Chits, Govt. of Tamil Nadu (CIN: U64990TZ2025PTC035813), making it a completely legal and secure chit fund for families, shop owners, and traders across the Krishnagiri district.