Chit fund

Chit Funds are a way of saving and borrowing money with a group of people. To join a chit fund, you must pay a certain amount of money each month. This money is then put into a pot, and from that pot each person gets a chance to borrow some money at the end of the month. Whoever gets the chance to borrow the money at the end of the month is chosen by lottery. Everyone who is part of the chit fund is also required to pay back the borrowed money with interest by the next month. Any money left over in the pot at the end of the month is divided up between all the members based on how much they paid in. This money can then be used to cover emergencies or as a way of saving money.