Join a group and contribute
Once all slots in a group are filled, the group can start. Every month, each member pays their subscription amount to create the ‘pot’ (the value of this total collection is also known as chit value).
Bidding to win the pot
Members of the group place their bids depending on how much money from the pot they want to borrow.
Winner is decided
Being a reverse auction, the lowest bidder wins and receives the amount they bid for.
In case there are multiple bidders who bid for the same value, the winner is decided by a lottery draw
Dividend is distributed
The remaining amount in the pot is equally distributed among the group members as dividend, including the bid winner.
Cycle is repeated
Each month, the same process is repeated till all the members have won the bid. Members are allowed to bid again if they have not previously won their bids in the same group.
