To help people understand the concept of chit fund and more importantly how it works on the Money Club mobile app, we started forming Pilot Clubs or Trial Clubs. Advantages of these clubs are a small investment and real-time money pooling experience with verified members. Each pilot club has 5 members in it who commit to contributing ₹ 200 each per day for 5 days.
Out of these 5 members, one member is from the Money Club team who forms the club and invites the verified members to join the club. This club operates daily and the club members in it join bidding at a regular time each day.
Winner of each round is decided through bidding. The highest bidder wins the chit amount and he pays ₹ 15 commission to the Money Club separately. Level 1 verification (basic KYC and background check) is done during the pilot club if the member has applied for the verification.
- Members who get successfully level 1 verified, proceed to join the real club. The Money Club declares the list of members who are eligible to join the real club.
- Members can start their first real club by contributing ₹500-₹600 per 3 days.
- After their first real club, members will be eligible to join more clubs based on their profile and their transaction history.
- Joining more real clubs is by invitation only.
- Real clubs have a penalty structure. If someone doesn’t pay within 18 hours from the bidding, he needs to pay a penalty for delaying the payment.
- Members volunteer to become the club owner.
- The club owner then forms the club on the Money Club app and sends out the invites to his group members.
- After all the group members accept the invitation, the club owner activates the club for bidding.
In a short span of time members who have maintained a good history on the platform have reached a contribution of over 20,000 in 1 month. So it is completely up to the member how quickly he wants to scale up.
If you have any questions regarding this please connect with us on WhatsApp or by clicking on the “help” menu on the app and we will respond immediately!