19/04/2014



Margadarsi Chit Fund Private Limited

 

Over five decades ago, Margadarsi Chit Fund showed the people of Andhra Pradesh the way for a happier life. Guided by the vision and determination of Sri Ramoji Rao, Margadarsi made its humble beginning in October, 1962, in a small office with just two people working. To him can be credited pioneering the concept of chit funds in the state as never done before. Now it has become a household name in Andhra Pradesh.

Far from being a popular form of planning that it is today, chit funds was a little known concept when Margadarsi unfolded it in Andhra Pradesh. But with the passage of time and experience, chit funds became popular as people discovered in it an ideal way to save profitably and raise money at short notice to meet the contingencies. Many companies followed suit and chit fund companies sprung up like mushrooms. In this vast changing scenario, Margadarsi’s unchanging values like honesty of performance, professional integrity, high quality of service and absolute financial discipline helped in retaining its leadership position.   

Margadarsi enjoyed exponential growth over the years and today employs 4,300 employees, and has 8,000 agents, 103 Branches, over 3,88,000 subscribers and a turnover of over Rs. 7600 crores. Margadarsi is not only No.1 Chit Fund Company, but also a household name in Andhra Pradesh.


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Growing force in Tamil Nadu too
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Having started operations in Tamil Nadu in 1992, Margadarsi is fast gaining a firm foothold in the state. The company has already established 16 Branches engaged in providing the same high standards of service and reliability that made it the leader in Andhra Pradesh.

Trust now comes to Karnataka 
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With the opening of six branches in Karnataka by December, 2001 Margadarsi brings its long standing record of trust and reliability to the people of Karnataka in huge measure. The total number of Branches has grown to 19.

A tradition of excellence 
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Everyday some activity or interest of the well-diversified Eenadu-Margadarsi Group, of which Margadarsi Chit Fund is a part, touches the lives of people in some way or the other. The group is behind brands like Priya pickles & confectionary and Eenadu publications that publish the largest circulated Telugu daily, Eenadu, News time, a popular English daily and a host of magazines. The Group has also established a name for itself in entertainment with its Etv channel in Marathi, Telugu, Kannada, Bengali, Oriya, Rajasthani, Bihari, Gujarati, and Urdu. Dolphin Hotels, its venture in the hospitality business is known for its friendly service. The Group has also made a mark in film production and distribution with Ushakiron Movies, in handicrafts with Kalanjali and its latest venture Ramoji Film City, a one-stop destination for film making and also a unique tourist destination. 

History of chit funds 
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Chit Funds are indigenous financial institutions unique to South India and predating commercial banks. They have stood the test of time, as evidenced by the growth in the number of chit fund companies in the South. However, the importance of any financial institution cannot be judged by its numerical strength alone, but by its performance. Tracing back the history of the origin of chit funds reveals that they evolved at a time when banking facilities had not developed, thus filling an important credit gap in the economy. But with the growth of banks, chit funds were doomed to closure. However, on the contrary, vast expansions in the chit fund business were witnessed over the years, neck to neck with that of the banking system. Proof enough that chit funds continue to fill the credit gap in the developing economy of our country. Today chit fund companies are recognized as important credit and investment agencies.

A chit fund company is as good as its Foreman
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‘Foreman’ means a person who under the chit agreement is responsible for the conduct of the chit and includes any other person discharging the duties of the Foreman. It is the personality and conduct of the Foreman, whether individual or institutional, that lends strength to a chit Fund Company. A Foreman credited with qualities like promptness, straightforwardness and honesty attracts subscribers easily for the chit fund company. Similarly, basic dishonesty and unscrupulousness on the part of the Foreman can break it. The Foreman assumes a dual role. Besides being an organizer, he also is a subscriber in every chit group. He is also entitled to obtain one chit amount into the chit group without deduction of the amount. It is a good practice if the Foreman ploughs back the entire prize amount into the chit business to meet his future obligations promptly. This ensures prompt payment to subscribers even in the eventuality of some members defaulting on the payment of their installments or discontinuing their membership. Thus ensuring that failure on the part of some members does not become an excuse for the Foreman to delay the Bid Payable amount to the subscribers.   

Why Margadarsi? 
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The hallmark of Margadarsi’s success is its meticulous planning, coupled with hard work and deep commitment to serve its customers in the best possible manner. New schemes are introduced form time to time to meet the financial needs of the customers and fulfill their aspirations. With a task force of 4,300 employees, 8,000 agents and development officers, efficient and prompt services are available to customers at all times. Subscribers can rest assured that the company will serve its customers with the same zeal throughout the association, right up to the termination of the chit.  Keeping with its promise of providing high quality professional and personalized service, Margadarsi started the unique ‘72 hour response’ facility. This facility of quick disbursement of money (subject to documentation) is unique to Margadarsi and currently not being offered by any other chit fund company. 

If for any reason, a subscriber fails to draw the prize amount before the next succeeding auction, the prize amount payable is deposited in a separate bank account. This money is earmarked for payment to the concerned subscriber only. Thus Margadarsi ensures total security for subscribers’ money.

It is this understanding of the need and requirements of customers that enabled the company to reach out to so many subscribers and continues to do so. Margadarsi’s impeccable track record and its strict professional discipline have earned it tremendous good will and respect across the social chain: Professionals, industrialists, corporate executives, government employees, teachers, housewives and more. They all know and have experienced the company’s commitment to give the best and its ability to meet every kind of need. Besides they are secure in the knowledge that Margadarsi belongs to a stable financial group that shares an excellent relationship with all its customers. This success hasn’t come easy. Nor has it in any way made the company take it easy. It was the first chit fund company of its kind and Margadarsi continues to remain the first choice for lakhs of people from the different walks of life.

How Margadarsi works 
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With its vast experience in the field, Margadarsi has made systems and procedures simple, systematic and full proof. Subscribers can choose from a wide range of chits from Rs. 25,000 to Rs. 50,00,000 designed to suit a variety of requirements. To become a subscriber, individuals need to fill out an enrollment form, and opt for any of the chit schemes available with monthly installments ranging from Rs. 1000 to Rs. 1.00,000. Depending upon the requirement, one may choose Long Term Chits (50 month duration) for saving purpose and Short Term Chits (25 months duration) for emergency planning. Subscribers are entitled to bid at the auction even if only one installment has been paid i.e., the first installment. However, depending upon the requirement and competition, one can get the bid in any of the installments. After being declared as successful bidder in the auction, the successful bidder has to submit sureties depending upon future liability either from salaried employees with required basic salary or business people having taxable income or even property mortgage. Thereafter, the prize money is released after completing a few formalities. The chit money has to be paid back in remaining easy installments. The successful bidder earns his or her profit by repaying the monthly installments excluding the dividends.

Margadarsi, a lifelong friend 
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Every individual is driven by hopes and aspirations, but may lack the resources to make them come true. Sometimes, there are emergencies, obligations and unforeseen expenditures. All these occasions require money in lump sum. It is on occasions like these that one can turn to Margadarsi for help. Be it educating children or performing their marriage, constructing a house or buying a flat or investing in security for the future, Margadarsi has always been like a trusted friend. The company has been playing a vital role in making life easier for all those who’ve invested their confidence and hopes in it. This explains why the company has become synonymous with trust and reliability.

Pitfalls in the chit fund system
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Lured by the objective of making quick profits, persons with inadequate means start chit funds by furnishing the required security and fulfilling other prescribed formalities in the Act. Since their objectives are neither honest nor legal, such companies roll down their shutters soon, thus cheating many gullible investors .