Sri Veeralingeshwara Chit Funds
FAQ’s
Frequently Asked Questions – SVL Chits Hyderabad
Welcome to the SVL Chits FAQ page. We’ve put together simple and clear answers to the most common questions about our chit fund services in Hyderabad. Whether you’re new to chit funds or already a member, this page will help you understand how our plans work and how you can benefit from saving with SVL Chits.
A chit fund is a flexible savings plan where a group of people pool money regularly, and each month, one subscriber receives the collected amount through an auction system.
Every month, subscribers participate in an auction. You place a bid based on your need; the highest bid wins the fund for that round.
Combines both saving and borrowing in a single plan
Encourages disciplined savings
Provides early access to funds via auctions
Typically offers better returns than conventional savings
No! At SVL Chits, you can access your funds whenever needed by bidding in the monthly auctions there’s no fixed lock-in term.
We offer convenient monthly payment options including UPI, net banking, debit/credit cards, or via our local office.
Just fill out our simple registration form, submit your KYC documents, and get onboarded quickly. Once enrolled, you can start contributing from the next cycle.
Yes — you may transfer or modify your plan mid-cycle (such as changing contribution amounts), subject to approval and transparent documentation.
To keep operations smooth, SVL Chits charges a small, clearly disclosed commission (similar to industry-standard practice — often up to 5 %) that ensures you get efficient management with full transparency.
No worries — the auction will simply be held on the next working day, so your opportunity to bid goes uninterrupted.
Once all auction cycles of a chit are completed, the final prize is disbursed and the pooled fund is fully settled. Members receive either the full chit amount or the remaining dividend, in accordance with SVL Chits’ payout terms. Typically, the settlement and payment are completed within 30 working days of the chit’s conclusion.
A subscriber is required to provide sureties based on the future liability of the chit. The commonly accepted types of sureties are:
Personal Surety: Any salaried individual employed with the State/Central Government, Public Sector Units, Scheduled Banks, Public Limited Companies, or other reputed organizations can be accepted as a guarantor.
Bank Guarantee: A guarantee issued by a Scheduled Bank in the prescribed format may be submitted as surety.
Income Tax Assessee: Individuals engaged in business or profession with valid Income Tax assessment records for the past three years are eligible to act as sureties.
Property Pledge: Title deeds of urban property can be pledged as security. Third-party property may also be accepted, subject to verification.
At SVL Chits, once a subscriber is declared a successful bidder, it becomes their responsibility to provide valid and satisfactory sureties or guarantors in line with the future liability as outlined in our bylaws.
Surety Submission & Verification:
After the surety form is submitted, the Branch forwards it to the Corporate Office for a thorough guarantor verification. Both the subscriber’s and guarantors’ liabilities are carefully assessed. If the guarantors meet the eligibility requirements, the form is returned to the Branch for further documentation.
Documentation by Branch:
The Branch then prepares the required legal documents, which typically include the Guarantor Bond and Promissory Note, along with any additional documents depending on the type of sureties provided.
Final Review & Payment:
Once the documentation and verification are complete, all documents are sent to the Corporate Office for a final review. If everything is found in order, payment is released within 2 working days.
Timeline:
In most cases, the entire process is completed within 10 days. However, the timeline may vary based on the type of sureties submitted and the promptness of document submission. Members who consistently make regular payments and submit their documents without delay will have the fastest turnaround for payment release.
At SVL Chits, the safety of our subscriber’s money is given utmost importance through the concept of a Chit Security Deposit. As part of regulatory compliance, SVL Chits deposits the entire chit value with the Registrar of Chits in the respective state. This deposit serves as a strong financial safeguard, ensuring complete protection of subscriber’s investments. It also acts as a formal guarantee, providing assurance that subscriber’s contributions are secure at all times. By maintaining this practice, SVL Chits not only meets legal requirements but also builds trust and confidence among its subscribers, reinforcing our commitment to transparency and financial security.
In the event that no bidder is forthcoming in an auction, a lot will be drawn from the non-prized subscribers at the close of the prescribed time (i.e. 5 minutes), and the subscriber drawn will be declared as a prized subscriber. He will be entitled to receive the gross chit amount for his ticket less the foreman commission.
You’ll receive regular, clear event notifications and statements by SMS, email, or Whatsapp through our friendly customer service team.
We’re here to help! Reach out via phone, email, or visit our local branch. Our team is happy to guide you step-by-step.