Frequently Asked Questions (FAQ)
Nidhi Company is different from other NBFCs. Nidhi company required less amount of capital to start and also not regulated by RBI as compared to other NBFCs.
After the incorporation, Nidhi can only accept deposits from its registered members and shareholders.
Any person fulfilling following requirements can be a member of a Nidhi company: He must be an individual, corporate body and trust cannot become a member. He must be the age of 18 years or more.
RBI approval is not required for Nidhi Company to perform its operations. Nidhi Company can start working as soon as Registration process is completed.
Once the Nidhi Company registration process is over it is mandatory to meet the following requirements in a period of 1 year: Register minimum 200 members A minimum Rs. 10 Lakh net owned funds should be Maintain. . Uphold net owned funds to deposit with a ratio of 1:20 10% of total outstanding deposits must be unencumbered term deposits.
- Secured loans can only be issued against following securities:
- Jewellery and other precious metal like Gold, Silver
- Immovable Property.
- All Government securities, national saving certificates, insurance policies, Fixed Deposit etc.
Unsecured loans cannot be issued. Nidhi Company can only give secured loans to its members.