Terms and Conditions

01. Individual Contribution

  • A fixed amount that each user contributes towards the club.

02. Club Frequency

  • Duration between bidding rounds chosen when the club was created.
  • Daily, 3 days, Weekly, Fortnightly, Monthly, etc.

03. Club Amount

  • Total value of the club per round i.e. (Number of members) x (Individual contribution), also known as pooled amount.
  • For an instance, in a club of 5 members, where each member agrees to contribute Rs 10,000/-, the club amount will be 5 x Rs 10,000 = Rs.50,000.

04. Bid Amount

  • The value of interest a member is willing to pay to pick up the Club Amount.

05. Bid Date

  • Date agreed by the Money Club team for bidding.

06. Bid Time

  • Time of the day when the bidding will start on the Bid Date as per the available bidding slots. Bid time is usually between 7 PM to 10 PM.
  • The bid is usually activated within 30 minutes of the previous bid time depending on the slots available.

07. Bid Window

  • Duration for which the members will be able to bid.
  • The Bidding Window is 15 minutes except in case of Super timer.
  • Super Timer: This feature increases the bidding window by 1 minute every time any club member places a bid in the last 1 minute of the bidding. Super timer will not work in last 10 seconds of bidding as we will be closing the bid during the last 10 seconds.
  • The app sends alarms to members before the bidding starts as a courtesy, however members should ensure not to miss the bidding.

08. Penalty for delayed transactions

  • Penalty structure is not applicable in the pilot clubs.
  • Clubbers will need to pay a penalty in case their transactions are delayed and done after 18 hours from the bid end time.
  • After 18 hours from the bid end time, a penalty of Rs.20 will be added after every 6 hours of delay in transaction.
  • Maximum penalty will be 80% of the individual contribution amount.
  • Penalty will be collected by the Money Club and the bid winner will get 50 % of the penalty amount in the Vault section of the Money Club app as soon as it is received from the sender.
  • All club members give their consent to abide by this penalty structure if they accept their invitation to join a money club.

09. Defaulted Club

  • A Club will be declared defaulted if any of the following conditions are met:
    • One or more members of a club refuse or fail to make the necessary transfers against a round of bidding before the scheduled bid date of the next round of bidding + 1 day.
    • One or more members of a club refuse or fail to confirm the necessary transfers against a round of bidding before the scheduled bid date of the next round of bidding + 1 day .
  • If someone defaults in a club, he/she gets blacklisted from the Money Club platform. Therefore, if someone defaults in 1 club, he/she is considered as a defaulter in all his/her active clubs.
  • The moment someone is unable to complete his/her transaction in a particular round on the scheduled date and time (shown on the app) in any of his/her clubs + 1 day, he/she is declared as a defaulter in all his/her active clubs on the Money Club platform.
  • Due amount: In case of a default, the due amount is the sum total of all the present and future commitments in all the money clubs wherein someone has defaulted. And it will also include the penalty amount for delayed transfers, whenever applicable.
  • If a net investor (someone who has not won the club amount in his/her money club/s) fails to complete his transaction in his/her money club/s before the next scheduled bid date + 1 day and the club defaults, he will be replaced with another member to continue the club. The investor can get the invested amount refunded (after deducting penalty/commission if any) by writing to the Money Club support team through the Help section of the Money Club app.
  • In case of pilot clubs, if any member fails to make the payment within 18 hours from the bid start time, he would be considered to have defaulted at the platform.
  • Replacement of members (in case of default):
    • Borrower default: If someone defaults in his/her club after winning the pooled amount, he/she will be replaced with one of the Money Club team members who will make the payment for the current and the subsequent rounds in that club.
    • Investor default: If someone defaults in his/her club without winning the pooled amount, he/she will be replaced with another verified member who will make the payment of the previous rounds of that club to the Money Club and will complete the payments for the current and the subsequent rounds in that club.

In the worst case scenario, the Money Club will take the following actions:

  • Initiate the recovery protocol–   “Notices of default” with a 3-Level escalation will be sent to the defaulters email and physical address to allow the Money Clubber some time to respond and clear his dues. This may be supplemented with a physical visit.
  • Penalty & Interest– The defaulter has to pay a penalty (subject to change) as well as interest @ 1% of the due amount per day starting from the date we start the recovery process.
  • Make calls to your contact list– If no affirmative response is received from the defaulter then the debt recovery team will call the defaulters contacts to convince the defaulter to repay the amount.
  • Issue a legal notice to the defaulter– If no response is received from the defaulter even after this, a legal notice will be sent asking to repay the debt before a certain date or else a legal case will be filed against him. Post that a civil suit will be filed against the defaulter in the court of competent jurisdiction and a court case will be initiated thereafter.
  • Affect the credit rating– Complying with the NBFC P2P guidelines as per the RBI, all the data will have to be shared with Credit Information Companies. Defaulter’s transaction details will be reported to the respective credit rating agency which will impact his/her credit score permanently.

Bidding rules

01. Minimum bid amount

  • The minimum amount that the first bidder can bid with will be 1% of the club amount rounded up to a rupee. If the club amount is Rs 50,000, then the minimum bid amount will be Rs 500.
  • Bid amount is Rs 0 for final round and priority round.

02. Maximum bid amount

  • The maximum amount that any bidder can bid in a round can be 40% of the club amount rounded up to a rupee. If the club amount is Rs 50,000, then the maximum bid amount can be Rs 20,000.

03. Minimum bid increment

  • It is the minimum difference between two consecutive bids.
  • Bid increment is Rs 100 (fixed) for –
    • Weekly, Fortnightly and Monthly clubs
    • where the minimum club amount is Rs.1000 and the maximum club amount is Rs.20000
  • Bid increment is 0.5% of the club amount for –
    • Daily and 3 Days clubs
    • all the clubs where the club amount is lesser than Rs.1000 or greater than Rs.20000

04. Commission

  • This new commission structure is applicable for the clubs formed under the terms and conditions version 8 and above.
  • The commission of every user will be calculated based on the tables below and it is the percentage of the total pooled club amount. (For example – If a user’s current commission is 2% and he participates in a club of 10,000 INR pooled amount, then he would pay 200 INR as commission to The Money Club when he wins the round.)
  • The commission for the Pilot club is fixed at 15 INR. Applicable for the pilot clubs formed under the terms and conditions version 9 and above.
  • The commission will be taken as the average of the three factors – Real closed clubs, contribution amount & weighted average transfer time.
  • The commission(%) will keep on changing and it ranges from [4.0 – 0.5] % depending on these three factors.
Real Clubs Closed Commission(%)
0-3 4
4-6 2.5
7-9 2.25
10-11 2
12-15 1
16-20 0.75
20+ 0.5
Contribution amount(INR)* Commission(%)
0-20000 4
20001-35000 3.5
35001-75000 2.5
75001-100000 2
100001-150000 1
150001-200000 0.75
200001+ 0.5
Wt Avg Transfer Time (Hours)** Commission(%)
24+ 4
18.1-24 3.5
10.1-18 3
6.1-10 2
3.1-6 1.5
1.1-3 1
0-1 0.5

For example – If a user has closed 4 real clubs whose total contribution amount is 22000 INR & weighted average transfer time is 1.5 hours, then his commission would be –

Commission(%) = (2.5+3.5+1)/3 = 2.33 % (Refer above tables to understand the calculations)

Contribution amount = Contribution amount paid by user in every round + Money Club credits used by user + Winning bid amount by user in club + Penalty paid by user to Money club + Commission paid by user to Money club

Weighted average transfer time

Your recent transactions have more weightage than the earlier transactions. So if you want to improve your weighted average transfer time, then try to complete your upcoming transactions at the earliest and your weighted average transfer time will improve faster.

For example, suppose there are total 5 transactions. The 1st transaction’s weight is taken as 1 and it’s multiplied by the transfer time. The 2nd transaction’s weight is taken as 2 & so on and it will be divided by n(n+1)/2 where n is the number of your transactions.

1st transaction transfer time  = 12 Hours
2nd transaction transfer time = 10 Hours
3rd transaction transfer time = 4 Hours
4th transaction transfer time = 2 Hours
5th transaction transfer time = 1 Hour

Weighted average transfer time = 12*1 + 10*2 + 4*3 + 2*4 + 5*1 / 5(5+1)/2 = 3.8 Hrs

05. Bidding

  • Every member is eligible to win the bid in one of the rounds.
  • A member cannot bid if he/she already won the bid in a previous round.
  • The member who bids the highest wins the round.
  • Winner will transfer commission to the Money Club.
  • Rest of the club members share bid amount equally and transfer ((individual contribution amount – (winner’s bid amount/(club size -1))) to the winner.
  • In all cases the amount is rounded up to a rupee with a minimum of Rs.1.
  • If no one places a bid for the first 2 minutes, the system will randomly pick a member eligible for bidding and place a minimum bid on his/her behalf.
  • The last round does not involve bidding.
  • For Priority Clubs, the club owner gets to choose a round that he can pick the amount without bidding for it.

06. Fund Transfer Rules

  • Once the bidding is complete, the app will compute and show the amount that each member has to pay to the winner.
  • Golden Rule: All the club members should complete their transaction and update it on the app within an hour from the end time of bidding. Members following this rule build a reputed transaction history on the platform and gain more benefits.
  • The winner has to transfer commission to the Money Club bank account as calculated by the app
  • Other members will have to transfer their contribution amount – (bid amount/(club size-1)) to the bid winner.
  • The app requires each member to update the transaction ID (UTR number or reference number) of the transaction on the Money Club app so that the winner can check and confirm the receipt of funds.
  • The Club can be moved to the next round only after all fund transfers are updated/confirmed by the club members.
  • All members of the club will receive courtesy reminders about the pending transactions both through the app notification, SMS and email, however members should ensure to transfer the amount right after the bidding is complete.
  • If any member does not complete his/her transaction for the current round in any of his clubs before the scheduled day of bidding for the next round, we give additional time to that member and he/she can complete his/her transaction before 6 PM the next day and avoid defaulting on the platform.

07. The Money Club team has the authority to remove any member from a club at any point of time if the member is found guilty of any fraud or misconduct or does not adhere to the rules of the Money Club platform.