Chit is a mutually beneficial scheme where in a group of people contribute towards the chit value and one member from the group is given the prize amount and the dividends are distributed to all the other members. For Example if we consider a chit value of Rs.1000000/- with 40 members in the group each member has to contribute Rs.25000/- where by (40 X 25000) Rs.1000000/- is collected.

The auction is conducted in which the members participate and the person who discounts the maximum is declared as the prized subscriber. If there are more than one participant for maximum discount the Successful Bidder will be determined by way of lottery. Where in, the tokens bearing the numbers allotted to the members is put into a box and one token is drawn by any of the member present in the auction and thus, the member whose number is mention on the drawn token will be declared as the Successful Bidder.

40% is the maximum bid allowed, which means a person foregoes Rs.400000/- and the balance Rs.600000/- is paid to the prized subscribers. Out of 40% discount 5% goes to the company towards company's commission for conducting the chit and balance of the discount amount is distributed equally amongst all members of the group. That is 35 % is distributed to all the members by which next month they have to contribute (Rs.25000/- - Rs.8750/-) = Rs.16250/- only and Rs.8750/- is declared as dividend for that month.

When there are no maximum bidders, then the members will bid in the open auction that is conducted within 5 minutes for each group and the person who bids the highest is declared as Successful Bidder. For Example: Suppose, in the 10th month the Successful Bidder was declared at 30%, then all members of the group will get a dividend of Rs.6250/-each i.e. (Rs. 250000/-divided among 40 members) and each member has to pay Rs.18750/- towards Installment.

Therefore the members have to pay the installment amount less the dividend, the dividends earned workout to be the interest on the Installment payments made by the member. Successful Bidder is supposed to give the required sureties depending on the future liability of the chit. Only Non-Prized Subscribers whose payments are up to date can participate in the auctions.

Every month there is a Successful Bidder who gets his prized amount on submission of required Guarantors. The prized subscriber has to continue to pay the monthly installments till the termination of the chit.

Those members who do not want to draw the chit can contribute to the chit and after the 30th month if there are no bidders for the auction, the auction is decided by lot among the Non Prized Subscribers and the Successful Bidder is paid the Prize Amount. They either have options to submit sureties or prefer Future liability deducted upon which balance amount is paid from the Prized amount. The dividend accrued for the 40 months are the returns on investment for the monthly deposit are made to their accounts.

Chit fund is a unique financial concept, which has flexibility to borrow or save. By paying one-month installment amount, a person can get to borrow from the chit value, by offering a discount not exceeding the maximum limit ascertained in the chit agreement.

In a chit value of Rs.1000000/- for a period of 40 months, first the subscriber can get an amount of 600000/-by paying only Rs.25000/- and remaining installments he pays over a period of 40 months. The rate of borrowing is much cheaper than several other financial schemes.

The non prized subscriber who is a saving member upto the last installments gets dividend which is comparatively higher than the interest that are accrued by way of Recurring Deposit Schemes.

The purpose of drawing the prized amount need not be disclosed. It can be used for any need by the member for Example: House construction, Marriage, Education, Expansion of business, buy a Computer or any other purpose at his discretion.

Sri Rajendra Prasad Vasireddy, the founder of Ravi Chits in Palvancha (which later transformed into Vasireddy Chits Private Limited as per the changes in regulatory requirements) built trust over decades. Origins of Chit Fund which used to be a house wives part time activity has been led to a dynamic activity with professional integrity.

Vasireddy Chits (along with its predecessor Ravi Chits) has established strong experience of over 30 years since its inception that enables the service to be rendered meticulously and it has become a trusted name in Palvancha, Kothagudem and Hyderabad among its customer base.

Vasireddy Chits takes many precautions to safeguard against abuse through thorough due diligence of prospective customers before accepting as VCF customer. VCF also provides additional benefits to prompt customers by providing instant discounts for in-time payments. 

A person cannot take more than 2 (Two) chits in a single group that too one should have paying capacity for both. A person can participate in multiple chit groups based on paying capacity.

Vasireddy chit fund currently has a two types of chit groups available which suits all walks of people for Example: Individual, Employee, Professionals, Agriculturists, Land Lords, Proprietors, Partnership firms, companies, corporate offices, Organization etc., It has a Chit values of Rs.5,00,000/- and Rs.10,00,000/- both with a duration of 40 months currently.