Nidhiis a Hindi word, which meansfinance or fund. Nidhi Company is incorporated with an intention to cultivate
savings among members and to provide finance among members only. It is allowed
to take loans from members and can lend to only members. Hence, it can not
accept deposits or lend from/to non-members.
Though there are no separateregistrations to be done under RBI for a Nidhi company, RBI is empowered to
issue any directives to them. Nidhi Companies are as such exempted from main
provisions otherwise applicable to an NBFC in India. It requires minimum 7 members and 3 directors to start with. As apart of suffix, all such companies must append “Nidhi Limited” after its
name. Nidhi Company is very easy to formand there are minimum compliances afterward. You may visit here to know all
about loans that Nidhi company can offer and interest rates that it can charge.
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