Why is nidhi company so important. what are its advantages
Anmol Rohra (2 Points)
23 May 2020Anmol Rohra (2 Points)
23 May 2020
Asha Kanta Sharma
(Manager - Finance & Accounts)
(10524 Points)
Replied 23 May 2020
The literal meaning of Nidhi is ‘Treasure’ and in the financial market, however, Nidhi Company means a company which tries to cultivate the habit of saving by accepting deposits and providing loans amongst its members.
Hence, the nature of the company is exactly the same as it sense and starting a Nidhi company is undoubtedly will be a good way out for you to start a financing company.
In this write- up we will discuss the benefit of starting a Nidhi company in India –
Very Easy formation
Nidhi company registration is very simple and the level of complexity as compared to other types of finance companies like NBFC is minimal in Nidhi Company.
Cost Efficient Registration
Registering Nidhi Company comes with the pocket-friendly cost. The minimum capital requirement for registration of Nidhi Company is Rs 5,00, 000 lakh which you can invest within 2 months after getting your Nidhi Company registered.
For registration of Nidhi Limited, you can reach at www.hubco.in where you will find an economical price for Nidhi registration and get the registration of Nidhi company in a very cheaper price.
No RBI Regulations – less compliance.
Nidhi Company by its nature of activity comes under the category of NBFC but does not require RBI approval. These companies follow Nidhi Rules, 2014 issued in respect of the activity and working of the company. RBI has exempted Nidhi Company from following stringent compliances so you don’t need to be in rush-n- hush as RBI will not bother if you starting a Nidhi Company in India.
More Certainty in Nidhi company
In India, everyone likes to do the savings for six years old child to sixty years old man. And, the main objective of Nidhi company is to promote the habit of saving amongst its member which means it is certain and going concern business as the members will not stop savings anytime.
Less level of Risk - Non- payment loans
It is very clear that Nidhi Company can accept deposit and provide loans to its members only according to the Nidhi Rules, 2014 which means the risk of non- repayment of loans is less as compared to other finance business. It is the safest route for lending loan and the loans given to members are at very low rates in comparisons with other providers which again bring greater savings amongst members.
Net owned fund- Invest one get twenty
Net owned fund means the amount of capital invested by owner in its business for raising funds. The net owned fund ratio of Nidhi Company is 1:20, which means you invest one rupee and raise the deposit of twenty rupees.
Riya Belel
(2 Points)
Replied 27 May 2020
Chirag
(Professional)
(1979 Points)
Replied 28 May 2020
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