SECURITIES ACCEPTABLE

How to Draw Prize Money [Security Norms of Chits Pledge Types]?

INVEST YUVA & SALARY CLASS Make Bank Fixed Deposit
BORROW BUSINESS CLASS Give Surety or Guarantee
Yuvanadu Chit financial solution with multiple options to draw prize money:

Security Norms
As per section 31 of The Chit Fund Act, 1982, every subscriber who wins the prize must furnish sufficient security to take it. Also, section 22 allows the company to collect sufficient security for the due payment of future subscriptions.

Yuvanadu Chits offers maximum security options for their customers when taking the prize money. Customers can option for any one or a combination of the following securities from our security kit:
  • Assignment of Life Insurance Policies
  • Equitable Mortgage by Deposit of Title Deeds (Regd)
  • Bank Guarantee
  • Fixed Deposits
  • Paid Up Subscription in Non – Prized Chits - Pledge of Pass Book
  • Deposits with the Group Company
  • Security Pledge- Dematerialized
  • Personal Guarantee/Surety
Eligibility for Personal Surety Guarantors:
  1. Yuvanadu Chits suggest you opt among the 8 secured security options first for taking prize money.
  2. In case the secured options are not available, you can option for the unsecured option i.e. Personal Guarantors/Sureties.
  3. A Personal Guarantee/Surety must fulfil the following 4 eligibility checkpoints to act as security.
Salary Brackets in case of Employee Surety:
  1. No of Sureties: A Subscriber should be able to provide surety of minimum 3 eligible persons at the time of drawing the Prize Money.
  2. Criteria: Government Employees, Private Sector Employees & Business Persons.
  3. Property: Holding Subscriber/Surety should own properties as per the Grid.
  4. Income: If the Subscriber/Sureties are employees, they must have the basic pay/salary stipulated in the grid below.

    5. Additional terms & conditions stipulated for liabilities exceeding 10 lakhs, if Personal Guarantor is chosen as security
    Note: Yuvanadu Chits - Branch Manager must be consulted before enrolling a chit.
A Few Additional Conditions Need to be Fulfilled in cases Where The Liabilities are Greater than ₹10 Lakhs:
  1. Personal surety of a minimum of four persons.
  2. Subscriber & Guarantors should be income tax assesses.
  3. Copy of bank statement of salary/business account for a minimum of 12 months should be provided.

    4. Minimum of 3 people among the Subscriber & Guarantors should have property documents. It should be an urban residential or commercial property and not a vacant site. They must submit a copy of the title deed, encumbrance certificate, tax-paid receipt, or electricity bill of 3 properties.
In Case of Business Guarantors:
  1. Subscriber & Sureties must be in business for a minimum period of 10 years. Balance Sheet and Profit & Loss a/c and IT returns with computation sheet, and auditors report for the latest three years should be available.
  2. The net profit of the business should be Rs. 10 Lakhs & above for all three years. Net profit of Rs.5 Lakhs & above for all three years may be considered along with a copy of property documents.
  3. Successful bidder or at least one of the sureties must have a residential property with NIL encumbrances (without a loan on the property) in a 100 KM radius from the Chit office.
  4. Copy of title deed with a forced sale value of 150% of the subscriber’s liability along with NIL Encumbrance certificate (not older than one month) must be submitted.
Employees:
  1. Private sector employees – Minimum service of 7 years with a minimum take-home pay of Rs.50,000/- after all deductions and loan EMIs.
  2. Govt sector employees – Permanent employees with a minimum take-home pay of Rs.50,000/- after all deductions and loan EMIs.
  3. CIBIL Score of the subscriber & guarantors should be above 650.
  4. Subscriber & guarantors should be residents within a radius of 50 KM from the Chit office.