As per section 31 of The Chit Fund Act, 1982, every subscriber who wins the prize must furnish sufficient security to take it. Also, section 22 allows the company to collect sufficient security for the due payment of future subscriptions.
Muthoot Chits offers maximum security options for their customers when taking the prize money. Customers can opt for any one or a combination of the following securities from our security basket.
The value of the gold ornaments should be equal to 100% of the future liability of the member. It is valued currently at Rs.3000/gm.
Only traditional life insurance policies are accepted, and the surrender value of the Life Insurance Policy should exceed 100% of the member's future liability. Additionally, the subscriber needs to obtain a surrender value certificate and assignment confirmation from the Life Insurance company.
The property must be local immovable urban house/commercial property worth more than 150% of the member's future liability. Vacant land & rural properties are not accepted.
Bank Guarantees from scheduled banks that cover 100% of the future liability of the subscriber are accepted.
The subscriber must obtain a lien charge from the bank (scheduled banks), and the fixed deposit must cover 100% of the member's future liability.
Value in another non-prized Chit can be pledged. Only the paid-up subscription (excluding dividends) minus the Foreman Commission will be considered, and the actual amount should cover the member's future liability in full.
Fixed instruments (Physical/dematerialized) covering 100% of the subscriber's future liability are also accepted, e.g., NCDs, debentures, FDs, etc
Securities from NIFTY100 are accepted if they cover 200% of the subscriber's future liability.
Surety from a minimum of three qualified individuals is required. The number of sureties needed may increase depending on the nature and value of the future liability.
Experts at Muthoot Chits suggest you opt among the 8 secured security options first for taking prize money. In case the secured options are not available, you can opt for the unsecured option i.e. Personal Guarantors/Sureties. A Personal Guarantee/Surety must fulfil the following 4 eligibility checkpoints to act as security:
Local government employees who draw an unencumbered minimum monthly basic pay as prescribed by the Foreman.
Employees who have completed seven years of service in reputed companies and institutions with PF, Gratuity, and other benefits may be accepted as Sureties at the Foreman’s discretion. They must also provide proof of ownership of immovable property, such as a copy of the sales deed along with the most recent house tax receipt.
Local business owners who have been in business for at least ten years and can provide documentary proof to satisfy the Foreman. Business owners should provide proof of ownership of immovable property, such as a copy of the sales deed and the most recent house tax receipt.
|Future Liability Slab (Rs)||Govt Employee||Pvt Sector Employee & Business Person/others|
|Below 3 lac||Minimum of 1 Property document copy on a best-effort basis.|
|3 lac to less than 5 lac||Minimum of 1 Property document copy on a best-efforts basis.||Minimum of 1 property document copy Mandatory|
|5 lac to 10 lac||Minimum of 1 property document copy Mandatory||Minimum of 2 property document (2 persons) copies mandatory|
|* Only proof of property (Electricity bill, utility bill, etc) is required as a surety. The subscriber is not required to pledge the property as collateral.|
If the Subscriber/Sureties are employees, they must have the basic pay/salary stipulated in the grid below.
|FUTURE LIABILITIES||BASIC PAY|
|Upto Rs. 10,000/-||Rs. 4,500/-|
|Over Rs. 10,000/- to Rs. 15,000/-||Rs, 5,000/-|
|Over Rs. 15,000/- to Rs. 20,000/-||Rs. 5,000/-|
|Over Rs. 20,000/- to Rs. 25,000/-||Rs. 6,000/-|
|Over Rs. 25,000/- to Rs. 50,000/-||Rs. 6,500/-|
|Over Rs. 50,000/- to Rs. 75,000/-||Rs. 8,000/-|
|Over Rs. 75,000/- to Rs. 1,00,000/-||Rs. 8,500/-|
|Over Rs. 1,00,000/- to Rs, 1,50,000/-||Rs. 9,000/-|
|Over Rs. 1,50,000/- to Rs, 2,00,000/-||Rs. 11,000/-|
|Over Rs. 2,00,000/- to Rs. 2,50,000/-||Rs. 12,500/-|
|Over Rs. 2,50,000/- to Rs. 3,00,000/-||Rs. 14,500/-|
|Over Rs. 3,00,000/- to Rs, 3,50,000/-||Rs. 15,500/-|
|Over Rs. 3,50,000/- to Rs. 4,00,000/-||Rs. 17,000/-|
|Over Rs. 4,50,000/- to Rs, 5,00,000/-||Rs. 18,000/-|
|Over Rs. 5,00,000/- to Rs. 6,00,000/-||Rs. 20,000/-|
|FUTURE LIABILITIES||BASIC PAY|
|Over Rs. 6,00,000/- to Rs. 7,00,000/-||Rs. 23,000/-|
|Over Rs. 7,00,000/- to Rs. 8,00,000/-||Rs. 24,500/-|
|Over Rs. 8,00,000/- to Rs. 9,00,000/-||Rs.26,000/-|
|Over Rs. 9,00,000/- to Rs. 10,00,000/-||Rs. 27,500/-|
|Over Rs. 10,00,000/- to Rs. 10,00,000/-||Rs. 29,000/-|
|Over Rs. 11,00,000/- to Rs. 12,00,000/-||Rs. 33,000/-|
|Over Rs. 12,00,000/- to Rs. 13,00,000/-||Rs. 33,000/-|
|Over Rs. 13,00,000/- to Rs, 14,00,000/-||Rs. 34,500/-|
|Over Rs. 14,00,000/- to Rs, 15,00,000/-||Rs. 36,000/-|
|Over Rs. 15,00,000/- to Rs, 16,00,000/-||Rs. 37,500/-|
|Over Rs. 16,00,000/- to Rs. 17,00,000/-||Rs. 39,000/-|
|Over Rs. 17,00,000/- to Rs. 18,00,000/-||Rs. 40,500/-|
|Over Rs. 18,00,000/- to Rs. 19,00,000/-||Rs. 42,000/-|
|Over Rs. 19,00,000/- to Rs. 20,00,000/-||Rs. 43,500/-|
Note: The local Chit Branch Manager must be consulted before enrolling a chit.