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 49,999.00  29,999.00

Nidhi company overview

The primary object of Nidhi is to carry on the business of accepting deposits and lending money to member borrowers only against jewels, etc., and mortgage of property. For over a century Nidhi, with the objective of cultivating the habit of thrift, generally promoted by public spirited men drawn from affluent local persons, lawyers and professionals like auditors, educationists, etc., including retired persons.

The area of operation was local – within municipalities and panchayats. Some Nidhi on account of their financial and administrative strength opened branches within the respective revenue district and even outside. The principle of mutual benefit has been incorporated to pool the savings from members and lend only to members and never have dealing with non-members. Nidhi were not expected to engage themselves in the business of Chit Fund, hire purchase, insurance or in any other business including investments in shares or debentures. As stated these Nidhi do their business only with Members. Such Members are only individuals. Bodies Corporate or Trusts are never to be admitted as Members in these companies


Documents required for company incorporation

The name of the company should end with the words “Nidhi Limited”. After incorporation as a Nidhi, according to Rule 5 of the Nidhi Rules, 2014, every Nidhi shall within a period of one year from the date of its incorporation, ensure that it has –

  1. Not less than two hundred members;
  2. Net Owned Funds of ten lakh rupees or more;
  3. Unencumbered term deposits of not less than ten per cent of the outstanding deposits as specified in rule 14; and
  4. Ratio of Net Owned Funds to deposits of not more than 1:20.


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