No, we are not a Chit Fund. In order to provide you the best savings and borrowing options, and to help you achieve your goals, we have partnered with the most reputed Chit Funds of India.
Does KyePot offer loans?
Yes, we allow you to withdraw more money than you have saved. However, don't think of it as a loan. By borrowing from the chit group, you are merely taking the amount as a loan from your own future savings. The interest rates on this amount work out to be much lower than comparable amounts loaned from a bank or an NBFC via credit cards, personal loans, vehical loans, house loans, over draft facilities, etc.
Are chit funds a substitute for mutual funds?
No - the aim of participating in Chit Funds and Mutual Funds are quite different. While Mutual Funds are great at helping you build wealth for your long-term aims in life, Chit Funds allow you to fulfill your short-term and mid-term goals.
What are the advantages of participating in a chit fund?
Chit Funds can be the strongest pillar of your financial planning mix for the short-term and mid-term:
It is the ideal mix of a savings and borrowing tool.
It offers better returns than any traditional banking product (like an FD or RD)
It offers great liquidity. Unlike an FD or RD, you can withdraw the money you've saved up when you need it, without incurring penalties.
You get to borrow more than you've saved. It provides all the benefits of a loan, without the perils.
It inculcates a saving habit. Especially with KyePot, this allows you to plan, track, and achieve your financial goals with ease.
Why is it better to borrow from KyePot vs taking a loan?
You are not borrowing from KyePot. When you join a chit group, you pay a monthly contribution and are entitled to borrow the entire chit value of the group whenever you want. Think of it as borrowing from you own future savings. The effective rate of interest you pay is lower than a personal loan (don't even get us started on how bad credit card rates are) - and can be as low as 0% depending on when you borrow from your group. You get all the benefits of a loan, without the perils!
Participating in a group
How can I join a group?
Log in to the KyePot app on your Android phone and search the available chit groups for the one that best suits your needs. Once you have found the one that you want to participate in, tap the 'Join' button, and select the category which most accurately matches your goals. And you're done!
Our 'Operations Executive' will review your request and call you for a short chat before (s)he accepts you to the group.
What documentation do I need at the time of joining a chit group?
The first time you're joining a KyePot group, you'll need to perform a one-time verification of your Aadhaar eKYC, bank statements (last three months), and income proof (e.g. salary slips).
After this, you will receive an agreement by mail that you need to sign and courier back to us. (Don't worry, we're working with the regulators to make this an electronic process too).
Why do I need to select a goal while joining a group?
People who set personal goals and have a specific plan to achieve them are more likely to succeed. And since we want you to prosper, we ask you to assign a goal to each group you participate in.
This will allow you to visulally track the progress towards your goal and stay motivated as the chit group progresses.
Can I join more than one group?
You can join as many groups as you want. However, we do encourage you to take stock of what will be a comfortable monthly commitment, considering all the groups you'd like to participate in.
Once I have joined a group, can I be removed from it?
Once accepted, we don't remove any members from the group. In the rare case however, where you have not signed the documents in time to start the group, we will remove you from the group and notify you about the next group we will be starting.
My request to join a group was declined, what do I do now?
We're truly sorry that you were not accepted into the group. Our team will write to you with a feedback explaining the reasons for this. If you don't receive any specific reasons in your feedback, you can apply to join another group with a lower monthly contribution.
Borrowing from the Group
How am I allowed to borrow more money than I have saved?
The advantage of saving with a group is that everyone contributes small sums to make a much larger pot. This pot is then made available for group members to borrow by a bidding process. Learn more (How chit funds works).
How much am I allowed to borrow from a group?
You can find this information on every group card and even in the chit agreement you will sign at the time of joining, under the title 'Chit Value'.
How often can I borrow from a group?
Just once per group (yes, it's that simple!)
Why am I 'borrowing' the money? Isn't it a loan?
In a chit fund (ROSCA) you're essentially saving money with a trusted group of people. And since you're not taking the money from a financial institution like a bank, you're not taking a loan - you're just borrowing the money from the group!
I want to borrow from my group. What do I do?
Borrowing from your group is quite straightforward. When your group opens for bidding, place your bid for how much you'd like to borrow. Remember, a chit fund operates on reverse auctions - meaning the lowest bidder in any cycle wins their bid amount. In case of a tie between two or more group members for the bid, a winner is picked via an automated lucky draw system.
Can I cancel/modify my bid once I've placed it?
If you'd like to modify your bid, whether you want to increase or decrease it, we recommend you place a fresh bid in the same group. The system recognizes your last bid as your preferred one.
Currently we don't allow you to cancel the bid. (You can always place a bid for the maximum bid amount - so even if you are not outbid by someone else, you get the full amount minus the commission.)
I didn't win my bid, what do I do?
If you didn't win your bid, you can place a bid in the next cycle.
Bidding tip: Compare your previous bid to the winning bid to know if you were bidding too low.
Are there any fees that I need to pay when I borrow?
The amount you bid for is the amount you'll receive. The Foreman's Commission of 5% is already factored into your bid. You don't need to pay anything extra.
How long will it take for me to receive the money?
We process the payment within 48 hours of verifying your completed documentation.
Saving in the Group
What are the available payment options?
Along with UPI (BHIM) payments, you can also use the more traditional means of digital payments like NEFT and debit cards.
How do I set up the BHIM UPI app?
Setting up BHIM is very easy. Just download the app from the Play Store, install it, and link your bank account with it. It barely takes three minutes. Need more information? Read about it on the official BHIM website.
Can I pay monthly in multiple small installments
Yes you can! Go ahead and pay as much as you want, when you want. We'll even notify you a few days before your balance amount is due for the month.
My payment is not reflecting in the app. What should I do?
In the rare case, your payment is not reflecting immediately after you have completed your transaction, check the app again in a couple of hours. If the payment is still not reflecting in your transactions or your group, please reach out to us at firstname.lastname@example.org
Can I pay my complete contribution amount in the group even before it is due?
Yes, you can. Any surplus dividend which is not already adjusted against your contribution will be paid out to your bank account on the group's completion.
What happens if I pay late?
We take delays and defaults on payments seriously. Please read through the Chit Agreement carefully to understand the penalties applicable to your group (you will receive this after you're accepted in the group).
What is the payment date for my group?
All payments are expected before the Auction date. You can find this information in your group details as the 'Auction Date'. Don't worry, we will send you a reminders in advance too!
How do timely payments help?
Apart from ensuring the smooth functioning of the group and avoiding penalties, timely payments also help you build your KyePot Credit Score.
Will you send me payment reminders?
Yes, we will! You will receive a notification once your payment cycle starts, and frequent reminders for the last 10 days before the Auction date if you haven't paid already.
App and profile related
I want to change my mobile number/email id
Open 'My Profile' from the menu and tap the pencil icon on the top right corner. You can change your mobile and number and email id from 'Edit your personal details'.
How do I invite my friends to join KyePot?
We've made it really simple to invite friends and family from the KyePot app. You can share your personal invite code via any social or messaging app on your phone.
Inviting to a group: Before a group starts, go to the group (My Groups > Not Started) and tap 'Invite Friends'
Inviting to KyePot: Open the menu and tap 'Refer a Friend'