Hind Sight Benefits | Start as savings and convert into a borrowing instrument, if and when required. | Choose between savings and borrowing options – Whether Savings, FD or Loans | | | | |
Freedom to use funds | Subscriber has the freedom to use the funds as per thier will. | Loan is for specified purpose – be it home-loan, vehicle, business etc.
| | | | |
Rate of Interest on borrowing | Since the chit funds work under the principle of mutuality, you borrow from your future savings. | The Banks & other NBFC borrow money at interest, add service charges and lend at higher rates.
| | | | |
Rate of Return on Savings | Risk free when compared to any other financial intermediary | As cost of operations is very high and also the prevailing interest rate is a factor
| | | | |
Tax | Dividend earned is Taxable, GST Applicable. | Applicable. The interest earned from Savings a/c, FDs, etc is subject to Tax.
| | | | |