Conditions At a Glance

Gold Ornaments

The value of the gold ornaments should be equal to 100% of the future liability of the member. Valued currently at Rs.3000/gm

Assignment of Life Insurance Policies

Only traditional Policies are accepted, and the surrender value of the Life Insurance Policy should exceed 100% of the member's future liability. In addition, the subscriber needs to obtain a surrender value certificate and assignment confirmation from the Life Insurance company.

Equitable Mortgage by Deposit of Title Deeds (Regd)

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 Guarantee

Bank Guarantees from scheduled banks that cover 100% of the future liability of the subscriber are accepted.

Fixed Deposits

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.

Paid up subscription in Non – Prized chits - Pledge of Pass Book

Value in another non prized Chit can pldged. 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.

Deposits with the Group company

Fixed instruments (Physical/dematerialized) covering 100% of the subscriber's future liability are also accepted, e.g., NCDs, debentures, FDs, etc.

Security Pledge- Dematerialized

Securities from NIFTY100 are accepted if they cover 200% of the subscriber's future liability.

Personal Guarantee/Surety

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.

Eligibility for Personal Surety Guarantors

Subscriber should be able to provide surety of minimum 3 eligible persons at the time of drawing Prize Money
Subscriber/Guarantor/Surety must be any or combination of the following:
  • Government Employees

    Local government employees who draw an unencumbered minimum monthly basic pay as prescribed by the Foreman.

  • Private sector employees

    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 should also be able to provide proof of ownership of immovable property, such as a copy of the sales deed along with the most recent house tax receipt.

  • Business Persons

    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.

Subscriber/Surety should own properties as per the Grid
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.
The subscriber and all sureties must have a surplus income (net salary minus loan instalments) greater than two times the chit instalment.
  • If Subscriber/Sureties are employees, must have the Basic Pay/Salary as per grid.

What happens if you discontinue a Non-Prized chit?

Discontinuation of Chit may result in substantial loss, so it’s necessary to analyse the monthly income/expenses and select the correct chit group with a comfortable chit instalment. Unlike other investments, members in a Chit group come to an agreement where each member agrees to pay a pre-decided subscription every month till the agreed period. Hence cancellation/withdrawal from Chit is not allowed/permissible. There are two things/situations that will arise if you decide to discontinue from the Chit Group:

1. You can bring in a third person who is interested to subscribe/continue the chit in your place. If the prospect is acceptable to MPCIPL, we will consent for the transfer of chit from you (TRANSFEROR) to the new subscriber (TRANSFEREE). This is also called assignment (substitution) of chit. In this case, new subscriber must bring the total amount due as of now and the Old member (TRANSFEROR) will be refunded with his amount after deductions (if any) by MPCIPL after clearing the dues by the new member.

2. If you discontinue the Chit by not paying an instalment, the Foreman commission of 5% of the Chit value with GST will be deducted. The balance if any will be settled only after substitution (if the company gets someone) or completion of the Chit period, whichever is earlier.

Call Back