In this article, we will discuss about the maximum rate of interest that a Nidhi Company can charge on loan given to its members and types of loans it can provide. As per Companies Act, 2013 interest on a loan made by Nidhi company is regulated by MCA and Nidhi company registered under the act cannot charge interest on loan more than interest rate specified by MCA & RBI.
If Deposit Amount is | Then Loan Limit is |
---|---|
Deposit is less than two crore rupees. | Two Lakh Rupees |
Deposits are more than two crore but less than twenty crore rupees | Seven lakh fifty thousand rupees |
Deposits are more than twenty crore but less than fifty crore rupees | Twelve lakh rupees |
Total amount of deposits is more than fifty crore rupees | Fifteen Lakh rupees |
A Nidhi company cannot give any unsecured loans to its members. Its entire loan must be secured by way of a security as prescribed below:
Nidhi can give loan against gold, that also called “Gold Loan”. Gold Loans are subject to certain rules and regulation as per Nidhi Rules, 2014. Here are the following conditions:
Generally Nidhi business allowed giving secured loan against property. There are certain conditions for this type of loan that you must be follow:
This type of loan is also advanced by Nidhi Company in India. A Nidhi company can give loan against FD and also even against the own deposits kept by it. Further, this type of loan is also subject to certain restrictions:
Nidhi company can advance loan against these securities as well.
According to rule 16, the rate of Interest to be charged on loan given by Nidhi can not go above seven and a half percent (7.5%) above the highest rate of interest offered on deposits by Nidhi Company. This means that 7.5% is the gross margin that a Nidhi Company is able to earn from the operations.
These companies is not allowed to give any loans which are mentioned below:
Download: Nidhi Company loan format pdf.
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Hello,
Is there any cap on interest that can be charged on gold loans by Nidhi company
SURESH kumar.V.G
Hello Sir,
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