Committee system is just a method of raising money among a group of people. When you are in need of money there are two ways: one way is to take it from banks or other financial institution who take charge interest based on your documents, credit history etc. The next way is raising money with committee system which is far easier and with lesser interest rates as compared to banks.
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The First Ever Online Committee System In India
What Is A Committee System?
Here is a brief example to help you understand the concept of committee system in India clearly. Let’s say a group of ten members is interested in saving Rs 10,000 per month. One acts as a leader and gathers contributions from all participants and creates a monthly fund of 1 lakh rupees. Now, in order to take this 1 lakh rupee, members bid on it. The member with the highest bid wins that round and must repay it in subsequent rounds. Therefore, the bid amount is nothing but the cost that you are willing to take right away.
If you bid something like 18000 rupees in a round, you will receive 82000 rupees in that round, or 1 lakh less 18000 rupees. The remaining 9 members will split this 18000 rupees equally, giving each of them a profit of 2000 rupees. Now, the most important point is that only one person can win the pool at a time, and each member has a chance to win it once. In order for each of them to win it once in the future, this will take you ten rounds. Along these lines, the last individual will get the total amount at zero expense since there is nobody qualified for offering and he will be the most profitable individual as he is sharing 9 rounds of benefits and furthermore getting whole 1 lakh rupees at no expense.
The biggest advantage is that if you have a financial emergency you can easily get a lumpsum amount. You won’t have to go through the complicated bank process, where you need to have good credit score and documents to get a loan. Moreover this is especially beneficial for lower income group people who do not have access to banking facilities and have to depend on moneylenders for money in case of any financial need.
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What Is An Online Committee System?
Online committee system works on the same concept but here everything is digital, all with a few clicks on the phone. Members are verified before forming a group, bidding and transactions are done online and transaction
The Money Club is a safe and secure mobile app based on the concept of committee system where users can save, invest or borrow sitting at home without the hassle of documentation.
Difference between Online Committee (Money Club) and Offline Committee
- The first distinction is that there is no cash transaction. This indicates that you are not required to make a deposit with us. The winner receives your contribution directly. In exchange, you must confirm your transaction ID on the Money Club app to provide us with proof of payment.
- The second distinction is that bidding takes place online, requiring no travel on your part. Assume we plan a bid timing of like 9:30 PM then everybody in your group will be online on the Money Club application at 9:30 Pm and there will be a live bidding on the application. Bidding only lasts for 15 minutes, after which the person with the highest bid will win the round and everyone else will see his name and bank information on their screens. You will be able to send your money directly to the concerned person.
- Your earning in the committee system is the dividend which is shared every month when a member wins the bid. But in online committee system there are other ways you can earn:
- If you refer the Money Club app you earn Rs 200 per referral
- If you become a Money Club agent and refer 20 members in 60 days period you can earn up to Rs 18000.
Read: Money Club Referral Program
FAQs – Money Club App (Online committee system in India)
Money is secure in your own bank account till the bidding takes place. Once the winner is declared, everyone transfers the funds from their respective bank account to the winner’s bank account. This is currently done off the app, either through IMPS or UPI. After transferring the funds to the winner, the members have to update the transaction ID in the Money Club app.
Normal borrowing requires the borrower to fill up long forms and deposit piles of paperwork if he is borrowing from banks. If the user is borrowing from individuals then he has to call or meet a few trusted people before he can convince them about repayments. Life can be made simpler for such circumstances.
At the Money Club, there is no hassle of paperwork. You can join a club just with a few taps on your phone screen and 2 verification calls from our verification team. After joining the club, members who wish to win the pooled amount are required to bid their interest rates for it. The highest bidder wins the pool.
Money Club assures that all the members joining the club are genuine people so it verifies all the club members. Members have to go through the screening process and different levels of verification. Level 1, their PAN number is verified and in level 2 which is done for a bigger club amount, their bank statement, credit report and ITR is checked.
You do not need to deposit or pay money in Money Club. Here the complete process is online. After bidding, you will have to transfer the money directly to the winner's account after deducting your profit. If someone does not pay the amount, Money Club replaces that person with a member of the Money Club team to continue the club. In the background, we follow our Debt recovery protocol to recover the money from the defaulter. Money Club assures that all members joining the club are genuine people so it verifies all members of the club. The members have to go through various levels of screening process and verification.
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