Nidhi Company, is the one of non banking Indian Financing sector and acknowledged under area 620A of the Companies Act, 1956. Their main business is borrowing and providing cash just between their members.

You can do financial business like gathering deposits from members in kind of fixed deposit, recurring deposit, open savings accounts of members and distribute loans to members(individual, appropriately, mortgage, jewellery, gold, vehicle and so on) Nidhis are more popular in South India and are highly localized single workplace institutions.They are shared advantage societies, since their transactions are restricted just to the members; and membership is restricted to people. The principal source of funds is contribution from the members. A nidhi company is supposed to perform all its schemes and strategies according to the standards of RBI. It can not perform any strategy either loan or deposit of more than 5 years. The loans are offered to the members at reasonably affordable rates for functions such as home building or repairs and are generally protected. When compared to the orderly banking sector, the deposits mobilized by Nidhis are not much. Nidhi in the Indian context implies "treasure". However, in the Indian sector, it refers to any shared advantage society alerted by the Central Federal government as a Nidhi Company. They are created generally for promoting the practice of second hand and cost savings amongst its members.

Location

New Delhi

Disciplines

• Business

Affiliation

Crystal Vision

Website

http://www.taxexemption.in/nidhi.html