Nidhi companies we are going to talk about Major Nidhi companies in India include Varanasi Nidhi Limited, KPB Rakam Limited and Jayant India Nidhi Limited, which offer thrift and lending schemes. Adambakkam Janopkar Sashwath Nidhi Limited is one of the oldest, while JBsublate India Nidhi Limited and Mahamudra Global Nidhi Limited are gaining fame for clean ethics. Karyaksham Nidhi Limited and People’s Urban Nidhi Limited focus on financial inclusion, especially in Karnataka and Kerala. Thrissur Nidhi Limited is well known in the south, while Reeti India Nidhi Limited, established in 2020, continues to grow.
What is Nidhi Company?
Nidhi companies are type of non-banking financial company (NBFC) in India that focuses exclusively on promoting the habit of saving and thrift among its members. Managed by the Ministry of Corporate Affairs (MCA) since the capital regime, 2014, these companies operate based on a reciprocal dealing scheme, where the members are depositors and borrowers.
1. Mutual Benefit Society: Nidhi companies are formed to promote the financial interests of their members by encouraging the disbursement of benefits and extending loans to them.
2. Membership-based: Membership is usually restricted to residents of a particular region or locality. Mutual organizations may also sponsor new members up to a certain number, subject to regulatory limits.
3. Deposit Mobilization: They collect deposits from their organs, which must be completely safe. The deposits are usually fixed-term deposits, and the interest rates are determined by the company within the regulatory framework.
4. Loan Segmentation: Nidhi companies provide loans to their constituents at competitive interest rates. These loans are usually for personal, internal or social needs.
5. Regulatory Compliance: They must abide by the guidelines prescribed by the MCA, which include maintaining a minimum clean ownership fund (usually Rs 5 lakh), adhering to restrictions on geographical operations and adhering to prescribed governance norms.
6. No commercial activity: Nidhi companies are restricted from engaging in activities beyond their embryonic objective of lending and lending. They cannot undertake activities such as investing in shares, debentures, or securities of other entities
Here are the Top 10 Nidhi Companies in India?
1. Varanasi Nidhi Limited
2. KPB Nidhi Limited
3. Jayant India Nidhi Limited
4. Adambakkam Janopakara Saswatha Nidhi Limited (AJS)
5. Jbsublet India Nidhi Limited
6. Mahamudra Global Nidhi Limited
7. Samartha Nidhi Limited
8. People’s Urban Nidhi Limited
9. Thrissur Nidhi Limited
10. Reeti India Nidhi Limited
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1. Varanasi Nidhi Limited
Varanasi Nidhi Limited is a relatively small capital company that operates with a strong focus on individuality and transparency as per the rules prescribed by the Ministry of Corporate Affairs (MCA). Although its paid-up capital is Rs.5 lakh, it is known for its customer satisfaction with attractive savings and loan schemes. The company caters exclusively to residents and aims to support its members through various financial services such as fixed deposits and affordable loan amounts.
Varanasi Nidhi Limited maintains a strong reputation for trust and trustworthiness, which sets it apart from other unregulated mutual benefit societies in the region.
Address: 9X3H+3W6, Bhubaneswar Nagar Colony, Tagore Town, Orderly Bazar, Varanasi, Uttar Pradesh 221002
2. KPB Nidhi Limited
KPB Nidhi Limited is a well-established Nidhi company based in Kerala, India, incorporated in 1989. It has made a strong impact over the years by providing impeccable financial services especially to the general public. The company offers various types of deposit and loan yields such as Mukti Deposit, Recurring Deposit and Gold Loan.
Address: KPB Nidhi Ltd, KPBF Mandir, Sangeetha Sabha Road, Aluva-683101,
3. Jayant India Nidhi Limited
Jayant India Nidhi Limited is a popular Nidhi company in India, known for its strong financial services and adherence to governance standards. It is one of the top Nidhi companies, offering services like thrift deposits, fixed deposits and loans, with the main objective of promoting financial literacy and savings among its members.
Address: SCO-88, 2nd Floor, Opp. BSNL, Old Delhi Gurgaon Rd, Sector 12A, Gurugram, Haryana 122001
4. Adambakkam Janopakara Saswatha Nidhi Limited (AJS)
Adambakkam Janopkar Sashwata Nidhi Limited (AJS) is one of the oldest Nidhi companies in India, incorporated in 1931. It was formed to provide financial assistance to the middle and middle-income individuals, especially for needs such as home renovation, education, marriage or emergencies.
AJS works on the basis of the idea of mutual benefit, where its shareholders are both customers and owners. It is a Nidhi company, registered under the Ministry of Corporate Affairs, and follows regulations that ensure the safety of members’ funds.
Address: 107, Pudupet St, Ramapuram, Alandur, Chennai, Tamil Nadu 600016
5. Jbsublet India Nidhi Limited
JBSublet India Nidhi Limited is a relatively new Nidhi company, incorporated in 2018 in Jaipur, Rajasthan. Despite being young, it has quickly gained popularity in the financial services sector due to its adherence to the regulatory guidelines prescribed by the Cabinet of Corporate Affairs (MCA). The company primarily focuses on encouraging savings among its members and providing loans at competitive rates.
Address: 12, C Scheme, Ashok Nagar, Jaipur, Rajasthan 302001
6. Mahamudra Global Nidhi Limited
Mahamudra Global Nidhi Limited is a financial institution registered under the Companies Act, 2013, and operates as a Nidhi company. Its primary purpose is to provide financial services, especially to the middle class, with the aim of promoting savings and financial responsibility among its members.
Address: TOWERS, PLOT NO.A, UNIT NO. 503, 5th FLOOR GDITL NORTH Ex, 09, Netaji Subhash Place, Pitampura, Delhi, 110034
7. Samartha Nidhi Limited
Samarth Nidhi Limited is a trusted financial institution based in Karnataka, India. It operates as a Nidhi company with the specific objective of promoting thrift and providing financial assistance to its members. Some of its key offerings are as follows.
Samarth Nidhi Limited is regulated by the Cabinet of Corporate Affairs (MCA) and operates under the guidelines laid down in the Nidhi Principles, 2014, which gives an unambiguous meaning that all transactions and deposits are safe and secure. The company focuses on financial inclusion by making its services available to individuals and small businesses in Karnataka.
Address: 1st Floor, Samartha Nidhi Limited, Pinto Plaza, APMC ROAD, opp. Adarsha Hospital, Puttur, Karnataka 574201
8. People’s Urban Nidhi Limited
People’s Urban Nidhi Limited is a Kerala-based Nidhi company primarily focused on providing financial services to individuals who have difficulty accessing traditional banking options, such as lending. They aim to address financial exclusion by providing affordable financial services to those without a proper credit history or access to formal financial regulation.
The company operates within the framework of capital regulations, complying with the governing rules unambiguously. It promotes savings and responsible lending among its members, offering various deposit and loan schemes for middle and low-income groups.
Address: No.17/675(6), First Floor, Kurambil George Towers, Adoor P.O, Adoor, Pathanamthitta – 691523
9. Thrissur Nidhi Limited
Thrissur Nidhi Limited is an amazing non-banking finance company based in Thrissur, Kerala. Here are some of the key aspects of the company. Thrissur Nidhi Limited has gained a strong reputation in the financial sector, especially for its customer service and reliability. It is known to process a large number of loans, which indicates a strong operational capability
Thrissur Nidhi Limited offers a variety of loan products tailored to meet the needs of its members. These loans are designed to meet various personal and social needs, contributing to the financial empowerment of its members.
Address: Room No: TC-21/5821, Ground Floor, Aman Towers West Fort, M.G. Road, Thrissur-680 004
10. Reeti India Nidhi Limited
Reeti India Nidhi Limited is a Nidhi company based in Varanasi, Uttar Pradesh, which was incorporated on January 22, 2020. It is grouped as a floating company and is currently active. The company’s registration number is U65929UP2020PLN126055, registered with the Registrar of Companies in Kanpur.
The primary activity of Reeti India Nidhi Limited falls under financial intermediation except insurance and pension funding. This positions it to provide various financial services, particularly to facilitate savings and loans among its members.
Address: 8VCX+9VF, Bankat, Uttar Pradesh 221107
Conclusion
Nidhi companies are vital in promoting financial inclusion and thrift among their constituents in India. Working under a mutually agreed policy, these non-banking financial institutions focus on providing affordable loans and attractive savings schemes tailored to the needs of individuals, especially middle and low-income groups. Nidhi companies have emerged as an important component of India’s financial landscape. Their expansion and effectiveness highlight the importance of cooperative financial practices in meeting the diverse needs of the population.
FAQs
1. What do you mean by Nidhi Company?
Nidhi companies are a type of non-banking financial company (NBFC) that provides lending and borrowing facilities among its members on a mutually beneficial basis. These companies, focused on promoting savings, are particularly active in Southern India.
2. Is Nidhi Company under RBI?
Nidhi Companies are Non-Banking Financial Companies (NBFCs) registered under the Companies Act, 2013 and regulated by the Reserve Bank of India (RBI).
3. What is the difference between Nidhi Company and Bank?
Unlike regular banks, Nidhi companies provide services to their members, not shareholders, and focus exclusively on lending and borrowing among members to promote community-driven financial services.
4. What are the benefits of Nidhi Company?
Nidhi companies are not governed by RBI regulations, allowing them to set their own operating rules. Additionally, since transactions are restricted to members, financial risks are reduced.
5. How much loan can a Nidhi Company give?
₹2 lakh for deposits less than ₹2 crore. ₹7.5 lakh for deposits between ₹2 crore and ₹20 crore. ₹12 lakh for deposits between ₹20 crore and ₹50 crore.
6. What is rule 12 of Nidhi Company?
An attestation clause, in which the depositor confirms that he or she has read, understood, and carefully considered the financial statements and presentations provided by the Fund, and is making the deposit voluntarily and at his or her own risk.
7. What is the Nidhi rule?
To be recognised as a Nidhi company, a business must have at least three directors and seven shareholders. Within a year, it must reach 200 members and maintain a net owned fund of at least ₹10 lakh.
8. Is RBI approval required for Nidhi Company?
Creating a Nidhi company is straightforward since RBI approval is not required. The company must include “Nidhi Limited” in its name, as it is registered as a public entity.
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