Application Capture: Easily capture and manage loan and credit card applications through a user-friendly interface.

Telesales Optimization: Boost your telesales performance with tools that streamline call management and improve sales conversions.

Lead Management: Efficiently manage leads from capture to conversion with our robust lead management system.

Documents Management: Store, organize, and retrieve all necessary documents securely and effortlessly.

Lead Transfer: Seamlessly transfer leads between team members or departments to ensure timely follow-up and closure.

Pre-screening: Automate the pre-screening process to filter out ineligible applications and focus on potential borrowers.

Borrower Segmentation: Segment borrowers based on various criteria for targeted marketing and personalized service.

Field Sales Management: Track and manage your field sales team with tools designed to enhance productivity and efficiency.

1-click WhatsApp: Integrate WhatsApp communication directly into your CRM for quick and easy interactions with clients.

Follow-up Reminders: Never miss a follow-up with automated reminders and alerts.

Imagine you join a Chit Fund with a Chit Value of ₹1,00,000 and a total of 20 members participating in the group. The Monthly Subscription for each member is calculated by dividing the Chit Value by the number of members:

Monthly Subscription = Chit Value / No. of Members
                     = ₹1,00,000 / 20
                     = ₹5,000
                         

So, every month, each member contributes ₹5,000 to the Chit Fund.

Here's how it works:

1. Monthly Contribution
Every month, all 20 members contribute ₹5,000 each, adding up to a total of ₹1,00,000.

Auction:
An auction is held where members bid for the Chit amount. The member who bids the lowest amount (i.e., the amount they are willing to take from the total ₹1,00,000) wins the auction. For example, if a member bids ₹80,000, they will receive ₹80,000, and the remaining ₹20,000 is distributed as dividends among the other members.

Distribution of Dividends
The remaining amount, after the winning bid, is divided among all members, reducing their monthly contribution. So, if the winning bid was ₹80,000, each member would receive a share of the ₹20,000 left over, effectively reducing their net contribution that month.

Next Round
The process repeats every month. The winning member of the previous auction continues to pay their ₹5,000 subscription, but they can no longer participate in future auctions.

Completion
This cycle continues until all members have won the auction and received their lump sum. By the end of the Chit period, everyone has had a chance to receive the full Chit Value.

This system allows members to save money regularly while also providing access to a lump sum when needed, making it a flexible financial tool.

• Monthly Investment: ₹5,000
• Duration: 20 months

Chit Fund Details

• Chit Value: ₹1,00,000
• Maximum Bid: 70% of the Chit Value
• Foreman Commission: 5% of the Chit Value
• Prized Subscriber: Receives ₹70,000 upfront.
• Non-Prized Subscribers: Save ₹1,250 each month from dividends.

Prized Subscriber

• Receives ₹70,000 upfront.
• Total contribution over 20 months: ₹1,00,000.
• Effective cost: ₹1,00,000 - ₹70,000 = ₹30,000.

Non-Prized Subscribers

• Saves ₹1,250 per month from dividends.
• Total savings over 20 months: ₹25,000.
• Net contribution: ₹75,000 (since total contribution is ₹1,00,000, but ₹25,000 is returned as dividends).

Summary for Chit Fund:

• Prized Subscriber: They get ₹70,000 upfront but spend ₹30,000 over the period, effectively borrowing at a cost of ₹30,000 over 20 months.
• Non-Prized Subscribers: They save ₹25,000 over 20 months and effectively contribute ₹75,000.

RD Deposit Details

• Interest Rate: 8% per annum

An RD with a monthly deposit of ₹5,000 at an 8% annual interest rate will accumulate interest over the 20 months.

Formula to Calculate Maturity Amount:

The formula to calculate the maturity amount of an RD is:

Maturity Amount = P × ( (1 + r)ⁿ − 1 ) / ( 1 − (1 + r)⁻¹² )
        

Where:

• P: Monthly Installment (₹5,000)
• r: Monthly Interest Rate = Annual Interest Rate / 12 = 8%/12 = 0.6667%
• n: Number of Months (20)

Using the above formula, the maturity amount after 20 months of RD investment is calculated as follows:

Maturity Amount ≈ ₹5,000 × ( (1 + 0.006667)²⁰ − 1 ) / ( 1 − (1 + 0.006667)⁻¹² )
Maturity Amount ≈ ₹5,000 × 25.36 ≈ ₹1,26,800
        

Summary for RD Deposit:

• Maturity Amount: ₹1,26,800
• Interest Earned: ₹1,26,800 - ₹1,00,000 = ₹26,800

Comparison

Chit Fund:

• Prized Subscriber: Receives ₹70,000 upfront but incurs a net cost of ₹30,000 over 20 months.
• Non-Prized Subscribers: Save ₹25,000 in dividends and effectively contribute ₹75,000, resulting in no immediate earnings but a lower net contribution.

RD Deposit:

• Returns: ₹26,800 as interest on the investment, leading to a total maturity amount of ₹1,26,800 after 20 months.

Conclusion

For Immediate Cash Needs: A Chit Fund might be better if you need a lump sum (as a prized subscriber) and are willing to bear the effective cost over time.

For Better Savings: An RD is a better option if you’re looking to save consistently and earn interest on your savings. Over 20 months, an RD at 8% interest would yield more (₹26,800 in interest) than the savings in a Chit Fund (₹25,000 as a non-prized subscriber).

Therefore, if the primary goal is saving and earning returns, an RD Deposit offers a more predictable and higher return on investment compared to a Chit Fund, especially when you account for the foreman commission and other factors.

Key Responsibilities of a Pigmy Collector

Much like a chit collector, the primary responsibility of a pigmy collector is to collect payments from customers. Websoftex Chit Fund Software includes a dedicated module for pigmy collection that simplifies this task by capturing all the minute details required for smooth operation.

Types of Pigmy Payments

Fixed Payment:

• Customers pay a predetermined amount at specific intervals (daily, weekly, or monthly).
• The software accommodates these regular transactions and generates receipts accordingly.

Non-Fixed Payment:

• Payments and time intervals are not predefined, allowing flexibility for customers.
• The software manages these irregular payments, ensuring accurate tracking and receipt generation.

Features of the Pigmy Collector Module

Payment Collection:

• Seamless collection of both fixed and non-fixed payments.
• Integrated with customer payment history and receipt generation.

Receipt Management:

• Fixed Payment Receipts:Automatically generated for each fixed payment made by customers.
• Non-Fixed Payment Receipts:Custom receipts generated based on each transaction.
• Total Pigmy Collection Receipts:Comprehensive summary of all pigmy collections.

User Access and Security:

• Pigmy collectors are provided with unique usernames and passwords for secure access.
• All payment collections are subject to admin confirmation, ensuring accountability.
• The software restricts any unauthorized modifications or changes by the pigmy collector.

Reporting and Tracking:

• Detailed reports available for both fixed and non-fixed pigmy collections.
• Transaction history can be accessed for individual subscribers, providing transparency.
• The software offers options to view all collected payments and generated receipts.

Subscriber Account Management:

• Pigmy collectors can view comprehensive details of subscribers’ pigmy accounts, ensuring they are well-informed and can provide accurate service.

The Pigmy Collector module in Websoftex Chit Fund Software is designed to enhance the efficiency and reliability of pigmy collection processes, making it an indispensable tool for any chit fund operation.

Responsibilities of a Chit Collector

Chit collectors have the critical responsibility of managing back-due accounts, locating businesses and customers, and notifying them about their payment obligations. Their daily activities include maintaining accurate collection records and ensuring that payments are collected as per the schedule—whether daily, weekly, or monthly.

Websoftex Software Solutions Private Limited has developed an Android app specifically tailored for chit fund operations, with a dedicated module for chit collectors. This app is designed to be user-friendly and secure, allowing chit collectors to perform their tasks with ease and accuracy.

Key Features of the Chit Collector Module

User-Specific Access:

• Each chit collector is provided with a unique username and password, ensuring secure access to the app.
• The app is designed with high security measures to prevent misuse.

Simplicity and Usability:

• The app is simple and intuitive, making it easy for anyone familiar with mobile devices to operate.
• It includes only the necessary features required by chit collectors, streamlining their workflow.

Real-Time Transaction Updates:

• Every transaction made by the chit collector is instantly reflected in the main software, ensuring real-time updates and accuracy in records.
• Payments received by chit collectors must be approved by an admin before they are processed further, adding an extra layer of verification.

Receipt Management:

• Receipts are automatically generated for each payment collected, which can be provided to subscribers as proof of payment.
• The app also allows chit collectors to access and provide previous payment receipts to subscribers as needed.

Transaction Integrity:

• Transactions conducted by chit collectors cannot be deleted or altered in any manner, ensuring the integrity of the collection process.
• This feature prevents any unauthorized changes, safeguarding the interests of both the company and its customers.

Advantages of Using Websoftex Chit Collector Module

The Chit Collector module in Websoftex Chit Fund Software is designed to enhance the efficiency and reliability of the collection process. By providing a secure, user-friendly platform, it empowers chit collectors to manage their responsibilities effectively, while ensuring that all transactions are accurately recorded and approved.

This module is an essential tool for chit fund companies looking to streamline their collection processes, reduce errors, and maintain transparency in their operations.

Key Features of the Finance Module

The Finance Module is versatile, supporting different types of loans and interest calculations to cater to the diverse needs of customers. Here’s a detailed overview:

Loan Management

The Finance Module provides flexibility in managing loans, offering two primary types:

With EMI Loan:

• Structure: This type of loan comes with a fixed Equated Monthly Installment (EMI) where the customer repays the loan in equal monthly payments over a specified period.
• Suitability: Ideal for customers who prefer a predictable repayment schedule and want to manage their finances with fixed monthly commitments.

Without EMI Loan:

• Structure: In this loan type, there is no fixed EMI. The customer may repay the loan based on a more flexible schedule agreed upon during loan disbursement.
• Suitability: Suitable for customers who require flexibility in repayment terms and may have fluctuating income streams.

Interest Calculation Methods

Flat Interest Type Loan:

• Calculation: Interest is calculated on the entire principal amount throughout the loan tenure, regardless of the payments made. This results in a consistent interest amount each month
• Characteristics: This method is straightforward and easy to understand, with a fixed interest cost that remains constant over the loan period.

Reducing Balance Type Loan:

• Calculation: Interest is calculated on the outstanding loan balance, which reduces with each repayment. As a result, the interest amount decreases over time, making it more cost-effective for the borrower.
• Characteristics: This method is beneficial for customers, as it reflects the actual outstanding loan balance, leading to lower interest payments as the loan progresses.

Additional Features

• Customizable Terms: The Finance Module allows for the customization of loan terms based on the specific needs of the customer, ensuring that both the lender and borrower can agree on favorable conditions.
• Automated Calculations: The system automates interest and EMI calculations, reducing the risk of errors and ensuring accurate financial management.
• Real-Time Tracking: The module integrates seamlessly with the main software, providing real-time updates on loan disbursements, payments, and outstanding balances.
• Comprehensive Reports: Detailed financial reports are generated to give administrators and customers clear insights into loan statuses, payment histories, and interest calculations.

With these features, the Finance Module within Websoftex Chit Fund Software offers a powerful tool for managing loans, ensuring that both chit fund companies and their customers can benefit from a well-structured and flexible financing system. This module is designed to handle the complexities of loan management while providing an easy-to-use interface for seamless financial operations.

Key Features of the Accounting Module

• Create Group:Organize accounts into groups for easier management and reporting.
• Create Ledger: Maintain detailed records of financial transactions with customizable ledgers.
• Subscriber Ledger: Keep track of each subscriber's financial activities and contributions.
• Receipt: Record all incoming payments systematically for accurate bookkeeping.
• Payment: Manage outgoing payments efficiently with detailed records.
• Day Book: Access a daily record of all financial transactions to keep track of cash flow.
• Trial Balance: Generate trial balance reports to ensure that debits and credits are balanced.
• Balance Sheet: Create balance sheets to provide a snapshot of the company’s financial position.
• Profit & Loss: Monitor profitability with detailed profit and loss statements.
• Profit & Loss Account: Analyze income and expenditure over a specific period to assess financial health.
• Receipt and Payment Account: Manage cash flow with comprehensive receipt and payment accounts.
• Subscriber Ledger Report: Generate reports detailing each subscriber’s financial history.
• Receipt Entry Details: Access and manage detailed entries for all receipts.

Benefits of the Accounting Module

The Accounting module in Websoftex's Chit Fund Software is built to meet the unique needs of chit fund companies. By automating and simplifying accounting tasks, this module helps companies maintain accurate records, comply with financial regulations, and make informed business decisions based on real-time financial data.

Steps to Handle a Defaulting Subscriber

When a non-prized subscriber defaults on their payments, the foreman (the person managing the chit fund) should take the following steps to address the situation:

Issue a Written Notice:

Within 15 days of the default, the foreman must issue a written notice to the defaulting subscriber, informing them of their removal from the chit group due to non-payment.

File with Registrar:

true copy of the removal notice must be filed with the Registrar of Chit Funds, Delhi, within 14 days of the subscriber's removal. This step is crucial for maintaining compliance with regulatory requirements.

Wait Before Substitution:

The foreman cannot substitute the defaulting subscriber immediately. They must wait until the approval period expires, which is 7 days from the date the removal notice is received by the defaulting subscriber. If an appeal is filed, the foreman must wait until the appeal is resolved before making any substitution.

Record Substitution:

Once a new subscriber is substituted for the defaulting one, the foreman must enter this substitution in the relevant records. A copy of this entry must also be filed with the Registrar of Chit Funds within 14 days of the substitution.

Deduct Penalties:

It is permissible for the foreman to deduct 25% of the total subscription paid by the defaulting subscriber or 5% of the total chit value, whichever is less, as a penalty for defaulting.

Payment to Defaulting Subscriber:

The foreman is responsible for paying the amount of subscription to the defaulting subscriber either after the termination of the chit or when the chit is prized to the substituted subscriber, whichever occurs first.

Deposit in S/D Account:

If the defaulting subscriber fails to acknowledge the payment, the foreman must deposit the amount in a Special Deposit (S/D) Account in an approved bank. The funds in this account can only be used for making payments to defaulting subscribers and cannot be withdrawn for any other purpose.

Importance of the Defaulting Subscriber Module

The Defaulting Subscriber module in Websoftex’s Chit Fund Software ensures that Chit Fund companies can manage defaulters legally and effectively. By following the structured process outlined in the software, foremen can minimize the financial impact of defaults on the chit group while staying compliant with regulatory requirements. This module not only helps in managing risk but also in maintaining transparency and trust among subscribers.

Work from Anywhere

Our Chit Fund Software is tailored to enable you to manage your chit fund operations from any location, at any time. All you need is a web browser and an internet connection, allowing for seamless access whether you’re in the office, at home, or on the go.

Website Integration & Online Access for Members/Subscribers

We offer easy integration of our software with your existing website, providing online access to your members or subscribers. This feature allows your subscribers to log in and track their chit fund accounts, view transaction history, and stay updated with their payment schedules.

Multiple Branch Management

Managing multiple branches has never been easier. Our software gives you the ability to control and monitor all branches from a single platform, ensuring consistency and efficiency across your entire operation.

Transparency & Client Satisfaction

Our software promotes transparency by giving subscribers the freedom to track their chit fund accounts and transactions. Regular notifications via SMS ensure that subscribers are kept informed about all relevant details. This transparency builds trust and leads to higher customer satisfaction, ultimately boosting your business reputation.

Cost-Effective Solution

Websoftex Chit Fund Software is a cost-effective, feature-rich solution for managing chit funds. It provides all the essential tools you need at a competitive price, making it an excellent choice for chit fund companies of all sizes.

SMS/Email/WhatsApp Alerts and Notifications

Stay connected with your subscribers through automated SMS, email, and WhatsApp alerts. Whether it's intimation of auction details, updates on new chits, or greetings for birthdays and anniversaries, our notification system helps strengthen the relationship between your organization and your customers.

Online Payment Gateway Integration

Our software supports the integration of various online payment gateways, including Debit Card, NEFT, IMPS, QR Code, and UPI. This feature allows for hassle-free payment collection, giving your subscribers the convenience of making payments through their preferred method.

Conclusion

Websoftex Chit Fund Software is designed to simplify the management of chit funds while ensuring transparency, security, and customer satisfaction. With its advanced features and user-friendly interface, it provides a robust solution for chit fund companies looking to streamline their operations and improve their service delivery.