Types of Acceptable Sureties
Chit Market recognizes the following surety types, each with its own eligibility criteria
Personal Surety
Click on "Become a Chit Company" at the top-right corner of the homepage.
- State or Central Government
- Public Limited Companies
- Scheduled Banks
- Recognized or Reputed Private Enterprises
Such individuals can act as guarantors, provided their employment credentials meet verification standards.
Pledge
Members can submit a pledge of deposits either through
- Existing chit deposits
- Other valid financial deposits with the company
Note: The net paid amount (after deducting the foreman’s commission) must be at least 1⅓ times the liability of thesuccessful bidder.
Bank Guarantee
Members can submit a Scheduled Bank Guarantee in a prescribed format.
This serves as a strong financial surety and must clearly specify the guaranteed amount and liability coverage.
Income Tax Assessee as Surety
Any individual assessed under Income Tax for the past three financial years, actively engaged in:
- Business
- Profession
- Independent income sources are eligible to act as a guarantor.
Property Pledge (Title Deed)
Surety through urban property involves:
- Depositing original title deeds of the property
- Third-party properties are also accepted with proper documentation
All properties submitted must be legally verifiable and free from encumbrances.
Final Note:
The chit fund company reserves the right to evaluate the authenticity and adequacy of sureties submitted. Providing valid sureties ensures a smoother bidding and payout process, builds trust, and aligns with regulatory expectations.
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