Nidhi Company is an organization enlisted under the Companies Act, 2013, which has a sole goal of developing the propensity for thrift and reserve funds among its individuals. Nidhi organizations are permitted to take deposit from its individuals and loan to its individuals only. In this manner, the assets contributed for a Nidhi organization are just from its individuals (investors) and utilized just by the investors of the Nidhi Company.
Nidhi organization is a class of NBFCs and RBI is engaged to issue directions to them in issues identifying with their store acknowledgment exercises. In any case, in acknowledgment of the way that these Nidhis manage their investor individuals just, RBI has exempted the informed Nidhis from the centre arrangements of the RBI Act and different headings appropriate to NBFCs. In this way, Nidhi Company is a perfect element to take store from and loan to a particular gathering of individuals.
The fundamental and extreme goal behind setting up a Nidhi Company is to develop thriftiness and a propensity for making reserve funds among every one of its individuals, with the end goal to meet their particular money related necessities in life emerging occasionally easily.
1) Highly localized single office institutions
2) Duly recognized by the government and governed primarily by the members, with no external involvement.
3) Offer easy financial loans to the financially middle and lower classes of people, with minimum formalities. The secured loans are available at rather reasonable rates for the purposes like house construction/repairs. Collateral in form of jewellery or mortgage of property is accepted.
4) Accept term deposits for timely returns.
5) These companies guarantee secured investments by virtue of rigid membership structure.
6) The loans and savings are facilitated by the minimum documentation and formalities.