How To Create A Base + Premium Chit
In a Base + Premium chit every member pays the same base amount each month until they lift the chit. After that they pay the base plus a premium, which ChitsApp calls the post payment.
This guide explains the model, the settings you fill in and the steps to create one in the ChitsApp Android app.
At A Glance
How It Works
- The base payment is the chit amount divided by the duration: a ₹1,00,000 chit over 20 months has a base payment of ₹5,000.
- One member lifts the chit each month. From then on they pay the higher post payment, so the monthly pool grows as more members have lifted.
- The recipient is paid what is left of the month’s pool after your commission, so the payout rises month by month.
What The Chit Collects And Pays Out
A ₹1,00,000 chit with 20 members over 20 months: base ₹5,000, post payment ₹6,000, commission 5% (₹5,000 every month). In month 1 one member has lifted, in month 10 ten have, and in month 20 all twenty have.
| Month | Paying the base | Paying the post payment | Collected | Recipient receives |
|---|---|---|---|---|
| Month 1 | 19 × ₹5,000 | 1 × ₹6,000 | ₹1,01,000 | ₹96,000 |
| Month 10 | 10 × ₹5,000 | 10 × ₹6,000 | ₹1,10,000 | ₹1,05,000 |
| Month 20 | 0 × ₹5,000 | 20 × ₹6,000 | ₹1,20,000 | ₹1,15,000 |
The post payment starts in the lift month (the app’s default, Lift Month), so the member lifting that month already pays ₹6,000. With Next Month, month 1 collects ₹1,00,000 and the recipient receives ₹95,000. The recipient receives the collection less the ₹5,000 commission.
How The Calculation Works
The rules ChitsApp applies each month, with the numbers from the example.
- Base payment = chit amount ÷ months. ₹1,00,000 ÷ 20 = ₹5,000.
- A month’s collection = members who have not lifted × base payment + members who have lifted × post payment. With Lift Month, the member lifting that month counts as lifted, so month 1 is 19 × ₹5,000 + 1 × ₹6,000 = ₹1,01,000.
- Recipient receives = collection − commission. ₹1,01,000 − ₹5,000 = ₹96,000.
- With Next Month, the member lifting still pays the base that month, so month 1 collects 20 × ₹5,000 = ₹1,00,000 and pays out ₹95,000.
The Settings You Fill In
Each one in plain words, in the order the form shows them.
- Chit Name
- What you and your members call the chit. ChitsApp gives every chit its own code as well, built from your organisation code.
- Chit Amount
- The full value of the chit, which is what the monthly pool is measured against.
- Duration (Months)
- How many months the chit runs. Each month is one cycle and one member lifts the chit, so the chit has as many units to fill as it has months.
- Post Payment
- What a member pays each month once they have lifted. Enter it as an amount in rupees or as a percentage.
- Post Payment Starts
- Lift Month: the higher payment starts in the month the member lifts. Next Month: it starts the month after.
- Commission
- Your fee, as an amount or as a percentage of the chit amount. 5% of ₹1,00,000 is ₹5,000 a month.
- Round To (Advanced)
- Closed by default. Opens a setting that rounds the figures to a unit you choose.
- Start Date
- The first cycle. Pick it from the calendar.
Steps To Create It
From the Chits tab to a live chit, in the Android app.
Choose Base + Premium
In the Chits tab choose Create New Chit. The first step lists the six models. Tap Base + Premium Chit and its one-line description appears: pay the base amount until you lift, base plus a premium after.
Show Example opens a sample chit if you want to see one before you start.
Fill in the chit
Enter the chit name, the chit amount and the duration, then the post payment, when it starts and your commission. Percentage fields show the rupee amount they work out to, so you can check them as you type.
Check the preview
Continue opens the Scheme Preview: the chit value, the duration and a table of every month. Read down it to see what each member pays and what the recipient gets each month.
Save & Continue creates the chit as a draft. The screen says so: nothing is shared with anyone until you publish.
Add your members
The Members step shows Slots Filled, for example 15 of 20. Add each member with a phone number, a name and the number of units they hold, or use Existing to pick people already in your members list, or Contacts to import from your phone.
Review & Create unlocks once every slot is filled.
Confirm and publish
Confirm lists the chit, its schedule, the roster and your earnings. When it looks right, Publish Chit asks once more: the schedule and the roster become live, and the chit can be shared with its members.
Start the first cycle
Publishing does not start cycle 1. Open the chit, choose Assign Recipient to pick who lifts this month, then Activate Cycle. Payments then show as pending for every member.
See the terms on the chit
A live chit’s Details screen repeats the terms you set: commission, the post payment and when it starts. A published chit is not edited from here.
Common Questions
What is the difference between Lift Month and Next Month?
Post Payment Starts decides when a member who has lifted begins paying the higher amount. With Lift Month it starts in the month they lift; with Next Month it starts the month after. In the ₹1,00,000 example, month 1 collects ₹1,01,000 with Lift Month and ₹1,00,000 with Next Month.
Is the commission paid by the members or out of the payout?
The recipient receives the month’s collection less the commission, so the commission comes out of the pool before the payout.
Why does the payout rise every month?
Each month one more member has lifted and pays the post payment instead of the base. In the example that is ₹1,000 more collected, and so ₹1,000 more paid out, each month.
Keep Reading
Free tools for this model:Chit Chart MakerChit Interest Calculator
Run your chits in ChitsApp
Start with up to 2 running chits free. No card needed. ChitsApp records payments; it does not hold or collect your members’ money.