‘MSIL’ being a 100% Government Company with its presence in the market for more than 40 years ensures that the public money invested is fully safe and secure. The priority of MSIL Chits is to protect interest of the public .Important features of ‘MSIL Chits’ are

  1. Subscriber protection through Chit Fund Act1982.
  2. Lower cost of borrowing for borrowers
  3. Easy liquidity
  4. Vide array of securities
  5. Easy and transparent operations

Any individual/firm can become a member in ‘MSIL Chits’ after complying to KYC norms. But one must take utmost care in deciding the group to which they like to enroll and ensure that he/she has got the sufficient income to pay the monthly installments and also the security to produce for future liability in the event of becoming a successful bidder.

‘MSIL Chits’ offers vide range of Chit Groups for enrollment which suits people of all income groups and all segments. The Chit value ranges from Rs.30,000/- to Rs.25 lakh with a monthly installment of Rs.1000/- to Rs.50,000/-. The duration of Chit varies from 30 months to 100 months with equal number of members in each group.

You may visit any of our nearest branches or contact authorized Agents for enrollment. The documents required at the time of enrollment along with the application form are 2 passport size photographs, identity proof and latest correspondence/permanent address proof. Each Chit Group will be allotted with a unique number and subscribers will also be given a separate subscriber number. A subscriber must quote both Chit Group number and subscriber number while seeking any clarification.

Maximum number of tickets one can enroll in one chit group is limited to 10% of the total number of tickets of that chit. However it is purely at the discretion of the Foreman to accept or reject application from any individual.

Every subscriber in a chit group will be sent an SMS clearly indicating dividend earned and amount payable. The subscriber who does not receive SMS at any point of time may immediately report to the concerned Foreman and ensure that they get timely communication. However non-receipt of intimation shall not the reason for delay in making payments.

All our branches are connected each other on-line. Hence a subscriber can make payments either by Cash, A/c payee Cheque and Demand Draft by visiting any of our branches. Subscribers must always insist for the receipt for all the Cash payments before leaving the cash counter. However MSIL has not authorized any of its Agents to collect cash from subscribers. Also the online payments by using Credit/Debit cards will also be introduced shortly. Subscribers may have to bear the related expenditures to avail this facility of online payment.

Non-payment of dues before the last date attracts interest for the delayed period in case of Non-Prized subscribers. In case of prized subscribers dividend amount for the delayed months will be forfeited apart from charging interest as per the company norms.

Subscribers who have made up-to-date payments only can participate in the Auction. Subscriber who made payment by Cheque will be allowed to bid only if the Cheque is cleared and amount credited to ‘MSIL Chits’ before the auction. Auctions will be held in the respective branches. The time and date of the auction will be announced at the beginning of the Chit Group which remains same till the termination of the Chit. In case the auction date falls on a holiday, auction will be conducted on the next working day at the same time.

The subscribers who cannot personally participate in the auction can authorize Foreman to bid on his/her behalf by giving a Proxy letter clearly indicating the bidding amount. This bidding amount indicated in the proxy letter will be kept confidential. Subscriber can also authorize third person ,other than Agents, to participate in the bid by giving an authorization letter authenticating signature of the authorized person.

Auctions are conducted in the respective branches by way of open bidding or lucky draw. The minimum bidding percentage will be 5% and maximum is 40% of the Chit value. MSIL’s commission is 5% of the Chit value every month. Members are supposed to bid in multiples of Rs.100/- beginning from the minimum bidding amount and the person who bids highest amount shall be declared as the successful bidder who is entitled for prized money which is total chit value minus the discount forgone(bid amount). The bidding amount minus the Foreman’s commission (5% of the Chit Value) will be divided among all the subscribers as Dividend and subscribers are supposed to pay monthly installment less dividend in the next month

When there are more than one subscriber for the maximum bidding percentage of 40% of the Chit Value, successful bidder will be decided by way of lucky draw wherein tokens bearing such subscribers’ numbers will be put in a box and any member present in the auction will be asked to pick one of the token.

Only Non-Prized subscribers can surrender their subscription by giving a written request to the concerned Foreman. Foreman on receiving application from any other person who is interested to take up that chit shall do the substitution. However original subscriber will get his/her paid-up amount only at the end of the chit or when the prized money is distributed to the subscriber who has replaced him/her after making necessary deductions as per the Agreement.

Investing in Chit schemes help you to cope-up with unexpected contingencies in future. One can participate in the bid and claim the prize money whenever the need arises. The return from the Chit scheme largely depends up on the active participation in the bidding by the subscribers of any particular group. However the interest cost against brrowing from Chit schemes might work out better than bank interest rate.

Prize money will be disbursed to the successful bidder within a week after 30 days from the date of bidding after the receipt of security documents for future liability/future installments complete in all respects as per the company norms. Following are the security details.

  • FD Pledge
  • Bank Guarantee
  • Immovable Property
  • NSC Pledge
  • LIC Policies
  • KVP
  • Postal life Insurance

Please click "Securities" for more details.

It is not true. ‘MSIL Chits’ offers wide range of security options for its customers as detailed in ‘SECURITY’ page. However security options which are being offered by ‘MSIL Chits’ are in the best interest of our entire customers in specific and Company at large.

No TDS will be deducted as per the prevailing Income-Tax provisions. However applicable service tax on 5% of the Chit Value (Foreman’s commission) will be deducted out of prize money.