- How does money move on the app?
Money is secure in your own bank account till the bidding takes place. Once the winner is declared, everyone transfers the funds from their respective bank account to the winner’s bank account. This is currently done off the app , either through IMPS or UPI. After transferring the funds to the winner, the members have to update the transaction ID in the Money Club app. Transaction ID should be immediately updated in the Money Club app after making the payment as the Money Club platform monitors the transfer time of each member. Your transfer time is a very important factor which plays a significant role in building up your reputation at the Money Club platform.
We are working to integrate UPI payments on the app so that users can transfer money using a few clicks from our app itself.
- I save through bank Recurring Deposits. How is the Money Club better than bank RD?
Bank offers 6%-7% rate of interest per annum on recurring deposits. With Money club, the rate of interest may exceed over 41 % per annum RD comparable interest, thereby redefining the paradigms of savings in our mind. Since we have created a platform that connects savers, borrowers and investors directly and removed the bank from the middle, the spread that the banks keep is shared between the borrowers and lenders and hence it is a win-win situation for all the members.
- What is the difference between normal borrowing and through the Money club app?
Normal borrowing requires the borrower to fill up long forms and deposit piles of paperwork if he is borrowing from banks. If the user is borrowing from individuals then he has to call or meet a few trusted people before he can convince them about repayments. Life can be made simpler for such circumstances.
At the Money Club, there is no hassle of paperwork. You can join a club just with a few taps on your phone screen and 2 verification calls from our verification team. After joining the club, members who wish to win the pooled amount are required to bid their interest rates for it. The highest bidder wins the pool.
- Do I need to form my own group or the Money Club will provide me one?
The Money club does all the hard work for you. We verify all the users who apply to join a Money Club. Members who successfully complete their verification become eligible to join the real clubs. Money Clubs will only be formed by the Money Club team. If you want your close friends to join us, you can refer them to us. We have an amazing referral program available for you.
- Why should I do this online when I can do the same thing offline?
The online system provides transparency and convenience to all. It also eliminates cash transactions and every single penny is accounted here at the Money Club platform. The offline system of pooling up money and doing cash transactions is completely illegal.
Moreover, the Money Club app automates all the notifications and the transaction reminders. It informs everyone when the bid is due, when their payments are due, and also keeps everyone in the group informed about who has paid and who is yet to pay up.
- How can I contribute and receive money? How much money can I start with?
Users only need to make a commitment when they join a club on the app. This doesn’t require them to transfer funds at that time. After the bidding, a winner is declared based on the highest bid amount. The club members get a popup in the Money Club app, showing the details of the winner (UPI ID, bank account details, amount to be paid to the winner, etc.). Members can directly transfer the funds from their bank account to the winner’s bank account. They also need to update the transaction ID in the Money Club app immediately after making the payment.
To receive money, you need to update your account details (like your UPI ID) in the Money Club app so that when you win, your club members can get your UPI ID immediately in the app itself.
You can start with a contribution of 200 INR.
- What happens when no one bids?
If no one bids in the first one minute of the live bidding countdown, the Money club app would run an algorithm to identify a member randomly. It will then bid the minimum bid amount (1% of the pool amount) on his/her behalf to start the bid. Bidding can then proceed normally post that. We call this feature AUTO BID.
- How long would the bidding time last?
The usual bidding period is 15 minutes but we have a feature called SUPER TIMER that can extend this 15 minutes period. SUPER TIMER starts in the last 1 minute of the usual bidding period. Every time any member places a bid in the SUPER TIMER zone, the bidding period gets extended by 1 minute.
- What happens when someone defaults?
The Money Club replaces the defaulter with one of the Money Club team members to continue the club. In the background, we follow our debt recovery protocol to recover the funds from the defaulter. Repercussions of default are given in this blog : https://www.themoneyclub.in/2018/02/10/what-will-happen-when-a-money-clubber-defaults/
10. What is the amount charged by Money Club?
- Winner of the bid will transfer the platform service charge to the Money Club. This service charge will be 10% of the highest bid amount in a round of a club .
- For an instance, if the highest bid amount in a round of a club is Rs.100, the service charge will be Rs 10.
- Final round and Priority round commission is 0.1% of club amount.
11. How many times can I borrow money from my club?
You get only 1 chance per club to win the pooled amount.
12. Can I join multiple clubs simultaneously?
Yes, but it depends on your profile and transaction history on the platform.
13. Can I leave an active club?
Yes, but not after the club is active. A club becomes active the moment all members join the club before the first round and the club admin activates the club. If you exit the club after it has already started then you would be considered to have defaulted on the platform.
14.What happens after a Money Club ends?
The club will be closed and moved to the historical clubs list in the app. You will get a new invitation for another club based on your transaction history and profile.