Friends and families form a chit fund group under an Organizer. Members invest a fixed amount every month. This collection (Prize Money) is available for borrowing. The price for availing it is known as Discount, which is distributed among all the members including the beneficiary. Selection of the beneficiary is done through auction.

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Say a group of 10 members agree to participate in a chit fund for a period of 10 months, contributing 100 USD every month, thus 1000 USD would be the maximum amount a member can draw-down.

On a specific day of every month, members will gather to bid for the 1000 USD. The Organizer would start the bid with a low amount, say 50 USD. Now the members can bid any amount above 50 USD. Assume a bidder bids for 60 USD and someone wants to challenge his bid, should bid above 60 USD. This way it goes like an auction. Suppose someone bids 100 USD and the deal is closed. Now the bidder would be awarded 900 USD. (His bid-amount would be deducted). The 100 USD deducted from the bidder would be shared equally among the members. So for that month each person will pay only 90 USD (100 - 100/10). This is the saving members gets every month. Once a member wins a bid he can't participate in future biddings. So after the first month only 9 members would be eligible for bidding.

And the bidding continues for 10 months. On the 10th month there would be only 1 member eligible for bidding. Hence that month's money would be given in full (1000 USD) to that member.

• Foreman will need to have a valid PayPal account and he has to agree to chittai.com's terms and conditions
• Foreman will have to enter subscriber email Ids and details about the Chit Funds during the registration process
• Invitation email will be sent to all subscribers, indicating the details about the Chit Funds
• Subscriber can then either accept or decline the invitation. If he accepts he will have enter his PayPal Id.
• Auction or Lottery for the chit funds will be conducted outside the chittai.com website. Once bid amount is finalized Foreman will enter the bid amount. Each subscriber would be charged that month's premium amount from his PayPal account. Charged amount would be credited to Foreman's PayPal account.
• Foreman will enter that month's winner in to the system. Prize money would be credited to winner's PayPal account from Foreman's PayPal account
• Transaction history and Reports are available in system for review.

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