Nidhi Company: What Is It? – ONICK EXPERTS

What is the Nidhi Company?

Nidhi companies are created for the primary purpose of encouraging thrift and providing credit facilities among their members at reasonable rates of interest. They also promote economic development and employment generation in rural and semi-urban areas. 

Nidhis are modeled after traditional savings and credit cooperatives, but they are not subject to the stringent Reserve Bank of India (RBI) regulations that apply to banks. As a result, Nidhis can offer higher interest rates on deposits and lower interest rates on loans than banks. 

Nidhis are typically small organizations with a limited number of members, all of whom share a common bond such as religion, caste, occupation, or locality. The common bond makes it easier for Nidhis to monitor its members and ensure that loans are repaid. 

Where is Nidhi Company located?

Nidhi Company is based in India, and they have a wide network of branches all over the country. They are one of the leading NBFCs in India and offer a wide range of financial products and services to their customers. 

Here are some examples of Nidhi companies

Maben Nidhi Limited, Muthoottu Nidhi (Kerala) Limited, Mini Muthoottu Nidhi (Kerala) Limited, and Kalayil Nancy Nidhi Limited are some famous Nidhi companies in India.

How does Nidhi Company work?

A Nidhi company deals in borrowing and lending money among its members. The Nidhi company only accepts deposits from its members. It can provide loans to the public except for its members. 

How do I start my Nidhi company account?


By providing the necessary documentation, you can register with the Nidhi Company. Nidhi Company even accepts online applications. I’d like to recommend onickexperts.com to you. It’s the best registration website and is very simple to use. You can get step-by-step registration advice by contacting the consultation staff.


A Nidhi company is a type of company in the Indian non-banking finance sector, recognized under section 406 of the Companies Act, 2013. Their core business is borrowing and lending money between their members. They are also known as permanent funds, benefit funds, Quasi Banks, mutual benefit funds, and mutual benefit companies.

When compared to other financial business types like NBFC, which need an RBI license to operate, Nidhi company formation is simpler and less complicated. A Nidhi company can be launched with Rs. 5 lakh in initial capital and needs at least seven employees to get going (minimum 7 members). Three directors are initially required for Nidhi company registration. To apply for a Nidhi corporation in India, each promoter or director must provide a copy of their PAN card as well as identification and address documentation.


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