A Nidhi Company is a business entity exclusive to India that cultivates the habit of thrift and savings among its members. It is a business entity that only does business among its members and relies on them for income and daily transactions. Let us look at the various features of this unique business entity in India.
The rising economy has escalated expensive products. It has caused a loss of money among the poor and middle class who are desperately looking for a way to preserve their future. Enters a Nidhi Company, a business entity whose sole purpose is to motivate the habit of small savings among its members.
As banks don’t offer vast interest rates and their rate of growth is lower for the poor, it is the Nidhi Companies that have gained traction in the market and attention of the Indian citizens.
But why this business entity is attaining the attention of all? Read More: Trademark Objection
Features of a Nidhi Company
When one goes through the Nidhi Company Registration process, they unlock the following features:
Promotes small savings among the lower middle and middle class:
With each passing day, the middle class is diverging away from traditional banks and towards entities that can actually yield profit. In this case, Nidhi Companies have proven to be life savours. Promoting small savings among the members, this business entity allows maximum profits with minimum efforts.
Accepting term deposits and giving timely returns:
If there is one thing that most in the middle class seek in India, it is their desire for regular income. Nidhi Companies help them by accepting regular deposits and giving timely returns.
Easy source of loan:
Let us be honest about banks for a second. Banks, even though traditional and more trusted, don’t have the best track record of granting loans to those who need them.
For the little people, there are Nidhi Companies. It provides an easy source of loans for the poor who can put gold and other valuable objects as collateral.
Secure investment for the poor:
To this day, those among the less privileged class are apprehensive about depositing money in the banks. The reasons vary, however, whatever those are, a Nidhi company circumvents them. Read More: Trademark Opposition
Thus, it gives a sense of security to the depositors who are willing to part from their hard-earned money to put their trust in it.
Rigid membership structure:
Not everyone can join a Nidhi Company without a proper background check. As every member is a part of the entity and is necessarily a shareholder. The directors of this business entity take special care when making the selection. They understand that choosing incorrectly can have long term ramifications on their business. Thus, they only allow those who have the appropriate sensibilities about thrift and savings to become members.
Starting a Nidhi Company is not just a business venture, but also a noble endeavour. Therefore, if you get a chance to start one on your own. Don’t be afraid to get in touch with a Nidhi Company Registration Consultant. They will help you establish your business entity in India with minimum effort. Read More: International Long Distance
Are you interested in Nidhi Company Registration in India? This blog explores the features of a nidhi company that will help you reach a decision.