A chit fund is a financial arrangement where a group of individuals contributes a fixed amount of money regularly. Each month, the pooled amount is distributed to one member, either through an auction or a lucky draw. This system not only encourages disciplined savings but also provides access to funds when needed.

Chit funds have been a trusted financial tool for generations, especially in communities where access to traditional banking services is limited. They combine the benefits of saving and borrowing, making them an ideal solution for individuals and small businesses alike.