want to register our fund business

POSTED BY prabhakaran ON September 16, 2012 1:14 pm ONE COMMENT

we are doing a weekly fund in our village every week we collect different denomination from our friends and relatives as savings ,we provide credit facility to them with  low interest rate when ever they need of money . we extent tht credit facilty only ten weeks and debit the interest on day of loan that means if the person wants 5000 then we debit the interest from priciple and pay remining (if interest is 3 percent .then the borrower get 4700 .on every week he has to pay 500 to settle his due for 10 weeks) .if they failed to repay he has to pay penalty for that weeks. 

  every deepawali  day current year the cycle starts and ends on next years deepawali day . on the week of deepawali day we pool entire deposits and interset and derive the total deposit with inerest and return to them according to their savings plus interest .

 

 

we get certain percentage as our income taht mens organisers charge.

 

we want to make this more profitable and effective based on legal guide lines so helps us do so further how to register with goverment and which form is suit for us .

 

One reply on this article “want to register our fund business”

  1. Dear Prabhakaran, what you people are doing is can be classified either as a chit fund or as a micro finance fund. Please check for the guidelines applicable in your state for each case & act accordingly.

    Thanks

    Ashal

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