Registration·6 min read
Nidhi Company Registration: Starting a Lending Business
Start a members-only lending society with ₹10 lakh minimum capital—without RBI NBFC licence, if you stay inside Nidhi rules.
December 15, 2023
What you'll take away
- Nidhi companies borrow and lend only among registered members.
- Minimum 7 members, 3 directors, ₹10 lakh net owned funds to start.
- Cannot advertise to public or run current accounts for non-members.
- Pelago incorporates Nidhi and sets first-year NDH compliance calendar.
What a Nidhi company is
Nidhi (mutual benefit society) encourages thrift among members—accepts deposits and lends only to members, secured primarily against gold/property.
Cheaper entry than NBFC (which needs crores of capital and RBI approval).
Capital and membership rules
- Minimum paid-up equity ₹10 lakh.
- At least 200 members within 1 year of incorporation (NDH rules).
- Net owned funds requirements increase with business—monitor NDH-4 filings.
- Branches allowed after profit and NOF thresholds.
Founder tip: Member KYC and loan documentation are your audit shield—treat like a small bank.
Building a cooperative credit model?
Nidhi incorporation + member onboarding compliance.
Discuss Nidhi setupRestrictions you cannot ignore
- No advertising for deposits from public.
- No current accounts for non-members.
- Cannot partner with fintech apps for public deposit mobilisation.
- Vehicle finance and unsecured personal loans are restricted—check latest NDH rules.
Compliance calendar
File NDH-1, NDH-2, NDH-3 as applicable; maintain statutory registers; board meetings quarterly.
Penalties for treating Nidhi like an NBFC marketing on Instagram are severe.
When to choose NBFC instead
If you need public deposits, pan-India app, or unsecured consumer lending at scale, Nidhi is wrong vehicle—plan RBI NBFC route with capital advisors.
Pelago incorporates Nidhi for community cooperatives and gold-loan societies in Kerala and beyond.