Chit Funds as an Innovative Access to Finance for Low-income Households

Mudit Kapoor, Antoinette Schoar, Preethi Rao

2012

Chit Funds are indigenous financial institutions in India that combine credit and savings in a single scheme. In a chit fund scheme, a group of individuals come together for a predetermined time period and contribute to a common pool at regular intervals. This paper presents findings from a study that examined the chit fund model in India, and how it currently serves users. 

Type

Journal Article

Thematic Area

Financial Inclusion