All about Nidhi Company Registration
Nidhi Company registration is a registration of a non-banking financial company. The word Nidhi in the Indian language means Treasure. However, in the Indian financial sector it refers to any mutual benefit society notified by the Central / Union Government as a Nidhi Company.
Nidhi Company is not allowed to do micro finance business or in other words, Nidhi Company is not allowed to provide unsecured loans to its members. Nidhi Company can only lend a secured loan that too only to its members.
Nidhi Company and Microfinance Company are two different forms of business. Let us have a quick look at the comparison of both the companies.
Companies Act, 2013
The individuals go for the Nidhi company incorporation to develop the saving habit and self-reliance.
The interest rate on investment is 7.1 percent.
Minimum share capital : 5 Lakhs
Minimum shareholder / clients : 7
Companies Act, 2013
Micro Finance Company support a lot of the services to groups and individuals which is associated to the fund.
The interest rate on investment is 8.50 percent.
Minimum share capital 5 Crores
Minimum shareholder / clients : unlimited clients / customers
