Nidhi Company:- A Non Financial Company in India
A Nidhi Company is a type of non-banking financial company that operates in India. They are recognized under the provisions of Section 406 of the Companies Act, 2013 and are regulated by the Ministry of Corporate Affairs.
The primary business of a Nidhi company is to mobilize savings from its members and provide loans to them. They operate on a mutual benefit basis, with profits being shared among members in the form of higher interest on deposits and lower interest on loans.
A Nidhi Company specializes in providing loans and accepting deposits from its members.
What are Essential Plans For Nidhi Investment?
In terms of investment plans, Nidhi companies generally offer a range of deposit schemes to their members, including fixed deposits, recurring deposits, and daily deposit plans.
The specific investment plans offered by a particular Nidhi company may vary, so it is advisable to review the company’s website or contact them directly for more information. Some general features of Nidhi company investment plans include:
- Attractive interest rates: Nidhi companies generally offer higher interest rates on their deposit schemes compared to traditional savings accounts.
- Flexible tenures: Deposit schemes may have flexible tenures ranging from a few months to several years, allowing members to choose a plan that fits their needs. You Can Work for the e nidhi registration Process Online and Easily!
- Simple application process: The application process for a Nidhi company deposit scheme is generally straightforward and simple.
- Safe and secure: Nidhi companies are regulated by the Ministry of Corporate Affairs in India, ensuring that the deposits of members are safe and secure.
- Loan facility: Many Nidhi companies also offer loan facilities to their members, allowing them to use their deposits as collateral for a loan.
It’s important to note that investment in a Nidhi company should be made after conducting due diligence and considering factors such as the company’s financial stability, reputation, and regulatory compliance.
Some of the key features of a Nidhi company include:
- Membership: Only individuals who are citizens of India and over the age of 18 can become members of a Nidhi company.
- Deposits: Nidhi companies accept fixed deposits, recurring deposits, and daily deposit plans from their members. They generally offer higher interest rates compared to traditional savings accounts.
- Loans: Nidhi companies provide loans to their members, including personal loans, business loans, and housing loans. The interest rates on these loans are usually lower compared to other types of financial institutions.
- Net Owned Funds: A Nidhi company is required to maintain a minimum net owned fund of ₹10 Lakhs as per RBI guidelines.
- Compliance: Nidhi companies are required to comply with various regulations and reporting requirements, including the submission of annual returns to the Ministry of Corporate Affairs.
