{"id":5467,"date":"2019-03-16T10:23:41","date_gmt":"2019-03-16T10:23:41","guid":{"rendered":"https:\/\/companyregistrationonline.in\/?p=5467"},"modified":"2020-10-07T10:49:36","modified_gmt":"2020-10-07T10:49:36","slug":"nidhi-company-vs-nbfc","status":"publish","type":"post","link":"https:\/\/companyregistrationonline.in\/blog\/nidhi-company-vs-nbfc\/","title":{"rendered":"Nidhi company vs NBFC vs. MF: what is the best business structure for you to start?"},"content":{"rendered":"

Nidhi Company Explained<\/h2>\n

To choose the best business structure before you open a Finance Company, Nidhi company vs NBFC, MF, etc, let us first understand what is Nidhi Company, that exists only in the Indian community. The term Nidhi means \u2018treasure\u2019. And in the Indian Finance sector, it has come to represent a mutually beneficial company, incorporated to infuse the habit of saving money or using it carefully, among its members. Nidhi Company is registered as a Public Limited Company under The Company Act 2013<\/b>\u00a0and is governed by\u00a0Nidhi Rules 2014<\/b>. Under this structure, only the members can contribute towards the and only members can take a loan out of it. Members opting for a\u00a0Nidhi Company Registration<\/a>, have this aim as their sole objective.<\/p>\n

The members of such society save and contribute to the funds of the company. This fund is then used to lend, at reasonable rates, to other members. The loans are usually taken for\u00a0construction\/repair of a house, or weddings in the family, etc.<\/p>\n

Nidhi Company vs NBFC<\/h3>\n

All Monetary Business Companies in India are classified as Non-Banking Financial Companies (NBFC)<\/strong> or Banking Companies. Because Nidhi Company is incorporated, keeping in mind improvement in the culture of saving and lending money, they come under the ambit of NBFC.<\/p>\n