{"id":123,"date":"2020-12-11T08:40:57","date_gmt":"2020-12-11T08:40:57","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=123"},"modified":"2020-12-11T08:40:59","modified_gmt":"2020-12-11T08:40:59","slug":"get-loan-under-nidhi-scheme","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/get-loan-under-nidhi-scheme\/","title":{"rendered":"Is It Possible To Get a Loan Under Nidhi Scheme?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In today\u2019s era, Nidhi Company has come\nout as a popular source for lending funds. Further, this business structure is\nmost predominant in the Southern Region of India. The main reason behind its introduction\nwas to help its member during the time of financial crunch and to inculcate the\nhabit of savings among them. In this blog, we will discuss the concept of \u201cLoan\nunder Nidhi Scheme\u201d.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a5f042986b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a5f042986b\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/get-loan-under-nidhi-scheme\/#Concept_of_Nidhi_Company\" title=\"Concept of Nidhi Company \">Concept of Nidhi Company <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/get-loan-under-nidhi-scheme\/#Regulatory_Framework_for_Nidhi_Company\" title=\"Regulatory Framework for Nidhi\nCompany\">Regulatory Framework for Nidhi\nCompany<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/get-loan-under-nidhi-scheme\/#Concept_of_Loan_under_Nidhi_Scheme\" title=\"Concept of Loan under Nidhi Scheme\">Concept of Loan under Nidhi Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/get-loan-under-nidhi-scheme\/#Things_to_Consider_while_Providing_Loan_under_Nidhi_Scheme\" title=\"Things to Consider while Providing\nLoan under Nidhi Scheme\">Things to Consider while Providing\nLoan under Nidhi Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/get-loan-under-nidhi-scheme\/#Summarised_Ceiling_Limits_of_Loan_under_Nidhi_Scheme\" title=\"Summarised Ceiling Limits of Loan\nunder Nidhi Scheme\">Summarised Ceiling Limits of Loan\nunder Nidhi Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/get-loan-under-nidhi-scheme\/#Concept_of_Loan_Against_Securities_under_Nidhi_Scheme\" title=\"Concept\nof Loan Against Securities under Nidhi Scheme\">Concept\nof Loan Against Securities under Nidhi Scheme<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/get-loan-under-nidhi-scheme\/#Security_No_1_Gold_and_Silver_Jewellery\" title=\"Security No 1: Gold and Silver\nJewellery\">Security No 1: Gold and Silver\nJewellery<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/get-loan-under-nidhi-scheme\/#Security_No_2_Immovable_Property\" title=\"Security No 2: Immovable Property\">Security No 2: Immovable Property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/get-loan-under-nidhi-scheme\/#Security_No_3_Receipts_of_Fixed_Deposits_Government_Securities_National_Saving_Certificates_and_Insurance_Policies\" title=\"Security No 3:\nReceipts of Fixed Deposits, Government Securities, National Saving Certificates\nand Insurance Policies\">Security No 3:\nReceipts of Fixed Deposits, Government Securities, National Saving Certificates\nand Insurance Policies<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/blog\/get-loan-under-nidhi-scheme\/#Other_Relevant_Provisions_under_Nidhi_Scheme\" title=\"Other Relevant Provisions under\nNidhi Scheme\">Other Relevant Provisions under\nNidhi Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/blog\/get-loan-under-nidhi-scheme\/#Types_of_Loans_not_Allowed_Under_Nidhi_Scheme\" title=\"Types of Loans not Allowed Under\nNidhi Scheme\">Types of Loans not Allowed Under\nNidhi Scheme<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/blog\/get-loan-under-nidhi-scheme\/#Personal_Loans\" title=\"Personal Loans\">Personal Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/blog\/get-loan-under-nidhi-scheme\/#Micro_Finance_or_Small_Credit\" title=\"Micro Finance or Small Credit\">Micro Finance or Small Credit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/swaritadvisors.com\/blog\/get-loan-under-nidhi-scheme\/#Vehicle_Finance\" title=\"Vehicle Finance\">Vehicle Finance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/swaritadvisors.com\/blog\/get-loan-under-nidhi-scheme\/#Hire_Purchase_Finance\" title=\"Hire Purchase Finance\">Hire Purchase Finance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/swaritadvisors.com\/blog\/get-loan-under-nidhi-scheme\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Nidhi_Company\"><\/span>Concept of Nidhi Company <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term \u201cNidhi Company\u201d refers to a kind of NBFC (Non-Banking Financial Corporation) that is regulated by the provision of the Companies Act 2013.<\/p>\n\n\n\n<p>Further, the feature that differentiates it from other business\nformats is that it works only for the mutual benefit of its member.<\/p>\n\n\n\n<p>Also, it shall be considerate to state that the activities of this\nbusiness format do not fall under the realm of RBI.<\/p>\n\n\n\n<p>Moreover, for a <strong><a href=\"https:\/\/swaritadvisors.com\/nidhi-company-registration\" class=\"text-primary\">Nidhi Company registration,<\/a><\/strong> the main source of funding is the deposits received from its members and shareholders. Also, the members can obtain a loan under Nidhi Scheme at a comparatively reasonable rate.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Regulatory_Framework_for_Nidhi_Company\"><\/span>Regulatory Framework for Nidhi\nCompany<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The regulatory framework for a Nidhi\nCompany are as follows:<\/p>\n\n\n\n<ol><li><strong>Companies Act 2013<sup><a class=\"text-primary\" href=\"https:\/\/www.mca.gov.in\/Ministry\/pdf\/CompaniesAct2013.pdf\"><strong><em>[1]<\/em><\/strong><\/a><\/sup><\/strong><\/li><li>Nidhi Rules 2014<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Loan_under_Nidhi_Scheme\"><\/span>Concept of Loan under Nidhi Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Nidhi Company is\neligible to accept deposits and provide loans to its shareholders or members.\nFurther, there are various provisions that deal with the concept of Loan under\nNidhi Scheme. Also, the rate at which such loans are provided must be based on\nthe guidelines and directions issued by the Apex Bank or RBI.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Things_to_Consider_while_Providing_Loan_under_Nidhi_Scheme\"><\/span>Things to Consider while Providing\nLoan under Nidhi Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The points to consider while granting\nLoan under Nidhi Scheme are as follows:<\/p>\n\n\n\n<ol><li>A\nNidhi Company needs to obtain prior approval from the MCA (Ministry of\nCorporate Affairs) or DoC (Department of Commerce) of either State or Central\nGovernment for giving out loans;<\/li><li>Nidhi\nCompany must provide the loan within the limit specified;<\/li><li>In\ncase the Total Deposits of a Nidhi Company is below the threshold of Rs 2\ncrores, then, in that case, it can grant loan only up to Rs 2 lakhs;<\/li><li>A\nNidhi Company is eligible to advance loan only up to Rs 15 lakhs if in case the\ntotal deposits received is more than Rs 50 crores;<\/li><li>The\nonly aim behind the incorporation of a Nidhi Company is to work for the mutual\nbenefits of its members and shareholders;<\/li><li>A\nNidhi Company is not eligible to provide loans to any corporate body;<\/li><li>A\nNidhi Company is not allowed to provide loans against securities;<\/li><li>Nidhi\nCompanies are not eligible to lend any unsecured loan;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Summarised_Ceiling_Limits_of_Loan_under_Nidhi_Scheme\"><\/span>Summarised Ceiling Limits of Loan\nunder Nidhi Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<table width=\"100%\">\n<tbody>\n<tr>\n<td width=\"444\">\n<p><strong>Amount of Deposits Received<\/strong><\/p>\n<\/td>\n<td width=\"180\">\n<p><strong>Permissible Loan Limit<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"444\">\n<p>If the total amount of deposits received is less than Rs 2 Crores.<\/p>\n<\/td>\n<td width=\"180\">\n<p>Rs 2 Lakhs<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"444\">\n<p>If the total amount of depositsreceived is above Rs 2 croresbut less than Rs 20 Crores.<\/p>\n<\/td>\n<td width=\"180\">\n<p>Rs 7.50 Lakhs<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"444\">\n<p>If the total amount of deposits received is above Rs 20 crores but less than Rs 50 Crores.<\/p>\n<\/td>\n<td width=\"180\">\n<p>Rs 12 Lakhs<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"444\">\n<p>If the total amount of deposits received is Rs 50 crores or more<\/p>\n<\/td>\n<td width=\"180\">\n<p>Rs 15 Lakhs<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Loan_Against_Securities_under_Nidhi_Scheme\"><\/span>Concept\nof Loan Against Securities under Nidhi Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Nidhi Company is not eligible to grant\nloans against securities to its member under Nidhi Scheme. <\/p>\n\n\n\n<p>However, a Nidhi Company can grant loans\nagainst securities in the following situations:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Security_No_1_Gold_and_Silver_Jewellery\"><\/span>Security No 1: Gold and Silver\nJewellery<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This type of loan is\nvery much popular among common people and is known as the Gold Loan. However,\nit shall be considerate to note that the loan value must not be more than 80%\nof the total value of securities. Also, the same should not be given for more\nthan one year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Security_No_2_Immovable_Property\"><\/span>Security No 2: Immovable Property<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This type of loan is\nprovided against immovable property. Further, the loan value of this type of\nloan must not exceed 50% of the overall value of securities. Also, the same\nshould not be given for more than seven years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Security_No_3_Receipts_of_Fixed_Deposits_Government_Securities_National_Saving_Certificates_and_Insurance_Policies\"><\/span>Security No 3:\nReceipts of Fixed Deposits, Government Securities, National Saving Certificates\nand Insurance Policies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This type\nof particular loan is not very common among the general public. However, it\nshall be considerate to mention that, in the case of loans against fixed\ndeposits, the loan tenure must not cross the unexpired period of the FD (Fixed\nDeposits).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_Relevant_Provisions_under_Nidhi_Scheme\"><\/span>Other Relevant Provisions under\nNidhi Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some of the other relevant provisions\nunder Nidhi Scheme are as follows:<\/p>\n\n\n\n<ol><li>Whenever\na credit or loan is granted to a Subsidiary Company from a Financial\nInstitution, then, in that case, security or guarantee for loan is given by the\ncompany;<\/li><li>In\ncase a Nidhi Company is earning profits for the last 3 financial years, then,\nin that case, the members cannot acquire a loan above 15%;<\/li><li>The\nmembers who have defaulted in the repayment of loans are not eligible to take a\nnew loan from the company;<\/li><li>It\nshall be considerate to note that only the members or their representatives are\neligible to apply for a loan from a Nidhi Company;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Loans_not_Allowed_Under_Nidhi_Scheme\"><\/span>Types of Loans not Allowed Under\nNidhi Scheme<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The different types of loans that are\nnot allowed to be given under Nidhi Scheme are as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Personal_Loans\"><\/span>Personal Loans<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A Nidhi Company is not eligible to lend or grant money as a personal loan based on credibility and <strong><a href=\"https:\/\/swaritadvisors.com\/income-tax-return-filing\" class=\"text-primary\">Income Tax Return<\/a><\/strong> (ITR). The reason behind the same is that a loan can be granted only against any security, such as immovable property or gold.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Micro_Finance_or_Small_Credit\"><\/span>Micro Finance or Small Credit<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A Nidhi Company is not allowed to\nprovide loans and work as a Microfinance Company, especially in semi-urban and\nrural areas. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Vehicle_Finance\"><\/span>Vehicle Finance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A Nidhi Company is not allowed to provide vehicle loans, as the same is allowed only by a registered NBFC (Non-Banking Financial Corporation).&nbsp; <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Hire_Purchase_Finance\"><\/span>Hire Purchase Finance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The business dealing in Hire Purchase is\nnot eligible to take a loan under Nidhi Scheme.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, a Nidhi Company is\ngoverned by the provisions of the Companies Act 2013 and Nidhi Rules 2014, and\nthe same is eligible to accept deposits and provide loans to its shareholders\nor members as well. <\/p>\n\n\n\n<p>Further, a Nidhi Company needs to obtain prior approval from the MCA or DoC either State or Central Government for giving out loans. Also, it can provide loan against securities, such as gold, silver, and immovable property, but, same is not the case with Personal Loan, Vehicle Loan, Hire Purchase Finance, etc. Lastly, in case of any other dilemma and perplexity regarding loan under Nidhi Scheme, reach out to Swarit Advisors, out experts will not only solve out all your issues and but will assist in the process of Nidhi Company Registration as well.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In today\u2019s era, Nidhi Company has come out as a popular source for lending funds. Further, this business structure is most predominant in the Southern Region of India. The main reason behind its introduction was to help its member during the time of financial crunch and to inculcate the habit of savings among them. In [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":127,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[8],"tags":[80],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/123"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=123"}],"version-history":[{"count":6,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/123\/revisions"}],"predecessor-version":[{"id":131,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/123\/revisions\/131"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/127"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=123"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=123"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=123"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}