On Forumosa there’s been quite a lot of talk about this unusual way to borrow money. Worth reading it. It’s called in Chinese a ‘hui’.
I’ve done the system twice, and it worked out quite well overall.
In general, though, the last couple of withdrawers do benefit the most, but if the hui is small, it’s not worth the risk.
The trick with the hui however is knowing who you are getting involved with. It really calls for knowledge about people.
My wife and her classmates did two, which both worked out, but the clue was that the classmates were all good friends who knew each other.
I had a friend who kept asking me to go in with him into his wife’s hui. But I refused each time because I couldn’t trust his wife. Turned out I was quite correct too.
If you EVER get involved with a hui, check the membership’s personalities and relationships with each other. This is the basis of a successful hui.