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,Telangana,Tamilnadu & Karnataka.
Far
from being a popular form of planning that it is
today, chit funds was a little known concept when
Margadarsi unfolded it in 1962. 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 16,301 agents, 108
Branches, over 3,11,146 subscribers and a turnover
of over Rs.11,206 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 20.
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.
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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.
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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.
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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.
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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.
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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
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