Chits & LLG

The primary enterprise of eureka groups is Chits / LL groups in which we have over 800 members; presently we have 30 groups operating. Every month a new group is started. The life span of each group varies from 20 to 40 months, a period which gives enough time intervals.


We made an attempt to define chits“CHITS are:
monthly savings
for a fixed period;
the entire amount can be bid and taken
i. anytime in between forgoing a discount
ii. full amount at the end* with dividends enjoyed for every month of waiting.
Eg: Monthly contribution Rs.20,000
No.of months 25
Full amount Rs.5,00,000
(i) Bid in 11th month: say, Rs.1,00,000
Prize amount given
in 11th month : Rs.5,00,000 – 1,00,000 = Rs.4,00,000
(ii) If you do not bid till the end of 25 months:
Amount given in last month
Rs.5,00,000 – *5% Foreman’s Commission : Rs.4,75,000
Dividends enjoyed Rs. 50,000
Amount Paid by the subscriber** Rs. 4,25,000
(** please see profit in 5 lakh group page Click Here)

HOW THE CHIT SYSTEM WORKS ? (modus operandi)

You save every month Rs.20,000 for 25 months
1. Jan 2012 20,000
2. Feb 2012 20,000
3. Mar 2012 20,000
12. Dec 2012 20,000
25. Jan 2014 20,000
You save for 25 months to get Rs.5 lakhs.(Rs.20000 X 25)
Instead, let 25 people give you all money in one month
You get in 1st month itself Rs.5 lakhs
Jan 2012:
Person 1 Person 2 Person 3 ….Person25
20,000 + 20,000 + 20,000 + ……20000 = Rs.5 lakhs
Likewise, every month 1 person can get Rs.5 lakhs*
This is the concept of chit. It is a mutual fund. As a reward to get money earlier, you are prepared to lose something. That is discount (or) dividend ….……distributed to all members.
A business man does not want to wait for 25 months. Let us assume he wants to receive all amounts in 3rd month. He is ready to leave Rs.1.5 lakhs and collect only Rs.3.5 lakhs ( 5 lakhs – 1.5 lakhs). This money is distributed all members so that they contribute less.
Here the amount forgone i.e discount Rs.1,50,000
Less: Foreman’s commission* Rs. 25,000 (5% of Rs.5,00,000 )

this amount is distributed to all members in the group as dividend i.e Rs.(1,25,000 ÷ 25) = Rs.5000
every member need to pay only Rs.15,000 (monthly due Rs.20,000-Dividend Rs.5,000)


The Company has the responsibility. If there is any loss, the company has to bear. Not only this, there are many other expenses….


Recognition as Star Customer
0.5% (or) 1% Bonus for advance payments
Priority in release of funds
Help in case of Emergency
Company offers new schemes, shares, project directorship
What you gain by paying late?
You’ll not get priority in getting Prize amount
No Bonus – no loans
If beyond three months of delay, late fees
Low priority to join New groups.


Chits are conducted by “Cotton City Chits (P) Ltd” and LL groups are conducted by “Niagara Finance”; cheques can be drawn accordingly to the respective concern.

LL Groups

A variation of chit scheme is LL groups – Loan Linked Installments. The main difference the funds are released whenever Subscriber requires. No need to wait for Auction day.