Chit is a mutually beneficial scheme where in a group of people contributes 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.100000/- with 20 members in the group each member has to contribute Rs.5000/- where by ( 20 X 5000 ) Rs.100000/- 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.

Tulunadu chit fund is having a wide range 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 wide range of Chit values starting from Rs.1,00000/- to a maximum range of Rs.1,00,00,000/-.

Tulunadu Chits various range of chit duration. They are 50 months, 40 months and 25 months with a members of 50, 40 and 25 respectively forming the group.

There is no restriction for the number of chits a person can take in a group without standards compliant initiatives.

Member can make payments either by Cash / Cheques or Net Banking. Third party cheques are not acceptable. Issued cheques have to be realized before the auction date if the member wants to participate in auction.

A Registered Chit Fund Company makes a Security deposit equal to 100% of chit value in Bank as FDR, which is pledged in favor of registrar of chits. Therefore, a member in a registered Chit Fund Company is very much secured than a member in a non-registered company.

A member can participate in auction right from the first auction itself, only if he or she has made the payments up to date. If paid by cheque, it should be realized before the auction date. A defaulter whose payment is not upto date before auction is not eligible to participate in the auction.

Once a member is declared successful bidder it is his responsibility to provide satisfactory sureties/guarantors based on the future liability as specified in the byelaws. The liability of the member and guarantors are verified and then if the guarantors are acceptable.