Chit Value

There is a new chit group that is commencing. The value of the chit is 500,000. This amount is known as the Chit Value.

Chit Period

For the purpose of this illustration, we will consider the duration of the chit to be 50 months. This is known as term period for the chit group.

Subscribers

The Foreman or Chit Fund Company has to gather 50 people who are interested in investing in this chit group. These 50 persons are called Subscribers.