A Nidhi Shall provides loans to its members only.
How much loan a Nidhi Company can give to its members :
#1. Rs. 2 Lakh where total amount of Deposits form its members is less than Rs. 2 crore
#2. Rs. 7.50 Lakh where total amount of Deposits form its members is more than Rs. 2 crore but less than twenty crore rupees
#3. Rs. 12 Lakh where total amount of Deposits form its members is more than Rs. 20 crore but less than Fifty crore rupees
#4. Rs. 15 Lakh where total amount of Deposits form its members is more than Rs. 50 crore
Note : No fresh loans exceeding 15% of above can be if Nidhi is not profitable for continuously three preceding financial years.
Members who have taken loan from Nidhi and defaulted in repayment of such loan shall not allowed to take fresh loans form Nidhi.
