Fixed Dividend Chit

How To Create A Fixed Dividend Chit

In a Fixed Dividend chit every member pays the base amount less a dividend, and the dividend shrinks month by month. Early months cost members less, and the recipient’s payout is the chit amount less the dividends and your commission.

This guide explains the model and the steps to create one in the ChitsApp Android app.

The Create Chit screen with the Fixed Dividend Chit model selected, described as dividend reducing the monthly payment

At A Glance

How It Works

  • The base payment is the chit amount divided by the duration. Each month every member pays that less the month’s dividend.
  • You set the first month’s dividend. It falls in equal steps to nothing in the last month, so members pay the full base payment at the end.
  • The recipient receives the chit amount less the dividends and your commission.

How The Dividend Falls

A ₹4,50,000 chit over 30 months with a first dividend of ₹4,500 a member and 5% commission (₹22,500), as the app’s sample chit shows it.

MonthDividend per memberEach member paysRecipient receives
Month 1₹4,500₹10,500₹2,92,500
Month 10₹3,100₹11,900₹3,34,500
Month 20₹1,550₹13,450₹3,81,000
Month 30₹0₹15,000₹4,27,500

Each month’s dividend is rounded to the unit in Round To (₹10 here). The recipient receives the chit amount less the dividends and the ₹22,500 commission.

The Fixed Dividend sample chit of ₹4,50,000 over 30 months, with each month’s payment, dividend and payout

How The Calculation Works

The rules ChitsApp applies each month, with the numbers from the example.

  1. Base payment = chit amount ÷ months. ₹4,50,000 ÷ 30 = ₹15,000.
  2. Dividend per member: ₹4,500 in month 1 (the first dividend of ₹1,35,000 shared by 30 members), falling in a straight line to ₹0 in month 30 and rounded to the nearest ₹10. Month 10 is ₹3,100.
  3. Each member pays = base payment − dividend. Month 10: ₹15,000 − ₹3,100 = ₹11,900.
  4. Recipient receives = chit amount − (dividend × members) − commission. Month 10: ₹4,50,000 − ₹93,000 − ₹22,500 = ₹3,34,500.

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.
Dividend
The first month’s total dividend, as an amount or a percentage of the chit amount. 30% of ₹4,50,000 is ₹1,35,000.
Commission
Your fee, as an amount or a percentage of the chit amount. 5% of ₹4,50,000 is ₹22,500.
Round To (Advanced)
Closed by default. Rounds each member’s dividend to the 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.

  1. Choose Fixed Dividend

    In the Chits tab choose Create New Chit and tap Fixed Dividend Chit: dividend reduces the monthly payment. Show Example opens a full sample chit.

    The Create Chit screen with the Fixed Dividend Chit model selected, described as dividend reducing the monthly paymentThe Fixed Dividend sample chit of ₹4,50,000 over 30 months, with each month’s payment, dividend and payout

  2. Fill in the chit

    Enter the chit name, amount and duration, then the dividend and your commission. The rupee figure each percentage works out to is shown under the field.

    Advanced is closed by default. Open it to change how the dividends are rounded.

    The Fixed Dividend form: Dividend of 30 percent of the chit amount, which is ₹1,35,000, and Commission of 5 percent, which is ₹22,500The Advanced section of the Fixed Dividend form, opened to show the Round To setting

  3. 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.

    The Scheme Preview for a Fixed Dividend chit, with the payment, dividend and payout for each month

  4. 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.

    The Members step of Create Chit: slots filled 15 of 20, an Add Member form with phone number, units and name, and the members already added

  5. 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.

    The Confirm step of Create Chit, saved as a draft, summarising the chit, its schedule, its roster and the organiser’s earnings before publishingThe Publish this chit? dialog explaining that the schedule and the roster become live, with Not Yet and Publish buttons

  6. 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.

    A newly published chit on its cycle 1 screen, with nobody assigned yet and an Assign Recipient button at the bottom

  7. See the terms on the chit

    The live chit’s Details screen shows the commission and the dividend you set, as a share of the chit amount.

    Details of a live Fixed Dividend chit showing a chit value of ₹2,10,000, 21 months, 5 percent commission and a dividend of 12 percent of the chit amount

Common Questions

Is the dividend I enter per member?

No. The Dividend field is the first month’s total, as an amount or a percentage of the chit amount. Shared across the members it gives each member’s dividend: ₹1,35,000 ÷ 30 = ₹4,500.

Why does the payout rise as the months go on?

The recipient receives the chit amount less the dividends and the commission. As the dividend shrinks to zero, less is taken off, so the payout rises: ₹2,92,500 in month 1 and ₹4,27,500 in month 30 in the example.

What does Round To do?

It rounds each member’s dividend to the unit you choose (₹10 in the example) so every instalment is a clean number. The payout absorbs the small difference.

Keep Reading

App WalkthroughEvery screen of the app, from the first sign-in to reports.Base + Premium ChitPay the base amount until you lift, base plus a premium afterFixed Payout ChitThe payout stays the same every month

Free tools for this model:Chit Chart Maker

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.

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