Definition of chit fund in English:

chit fund


  • (in South Asia) an institution which accepts savings at interest and lends money for house and other purchases.

    • ‘The Reserve Bank of India has directed all nidi companies, chit funds and non-banking financial companies holding public deposits to submit annual statutory returns on deposits before 30 September.’
    • ‘It is perhaps this aspect that tempts lay individuals join a chit fund in a hurry only to lament later.’
    • ‘The fact is that micro-credit services have existed from time immemorial through chit funds, pawnbrokers and the ubiquitous money-lender (collectively known as the informal credit market).’
    • ‘However, these days, that notion has been changed by chit fund and gold deposit schemes started by enterprising jewellers.’


Chit from chit.