Interest Settlement Policy

"This policy defines how the earned interest from the Savings Pot is distributed among all contributing members.

We aim to ensure fairness and transparency in the distribution process." 

Interest Distribution Process :

Step 1: Total Principal Calculation

• The total principal is the sum of all individual contributions made by the members during the investment period.

Step 2: Individual Share Determination

• Each member's share is determined based on their contribution to the total principal.

Formula: Share of Participant = Individual Principal / Total Principal

Step 3: Total Earned Interest

• The total interest earned by the club during the investment period will be documented.

Step 4: Interest Distribution

• Each participant’s share of the earned interest is calculated by multiplying their individual share by the total earned interest.

Formula: Interest for Participant = Total Earned Interest × Share of Participant

Example of Interest Settlement :

If the total principal is ₹60,000 and a member contributed ₹5,000, their share would be:

Share of Member = ₹5,000 / ₹60,000 = 8.33%

If the total earned interest is ₹1,000, their share would be:

Interest for Member = ₹1,000 × 8.33% = ₹83.30

Note

✅ Interest distribution will be done fairly based on the total contributions.
✅ Members will be notified of the interest earned and their share.
✅ This policy will be reviewed periodically for any necessary updates.