Nidhi Company software

     Shreecominfotech have an experience in development of core banking software, nidhi software. This software is useful for fund companies for to accept term deposits, recurring deposits, consumer loans, monthly income plans, dividend declarations, etc. It works on centralized database and web base with similar to core banking operations, so let’s start to discuss, what is Nidhi software? Benefits of Nidhi software? What is the process of Nidhi company registration?

     Nidhi Company classified as a NBFC, NBFC means non-banking finance company, and it is registered under section 406 companies Act 2013. Company can accept deposits and shares. These deposits are used by the company to pay its members or shareholders as a loans or advances and to take stock, bonds, debentures, securities issued by the government. It is regulated by the Ministry of Corporate Affairs, while the RBI monitors all its financial transactions.

Advantages of Nidhi Company

  • Less Complications: Borrowing and lending to known individuals, in which the process is fixed, is less complicated than dealing with banks or an informal setting. The fund company enables its members to unlock the potential of their money and get it at a lower interest rate when they need the money themselves.
  • Cheaper to borrow: As a member, loans can be taken at a lower rate than the rate at which a bank member lends. This can be a huge benefit in times of need, as different individuals in a mutual benefit society need funding in different places over time.
  • Encourages to savings: It will encourages to all members to save money and lead a meaningful lifestyle. A fund company is a mutual benefit society in which members can lend or borrow and accept financial aid from them.

Before starting Nidhi company check the below list.

  • If you want to start nidhi company then then there is seven members are mandatory to form a nidhi company, however, a minimum of 200 members should be obtained within one year of commencement.
  • At least 10% of its outstanding deposits must be non-deposit term deposits.
  • The ratio of deposit to prescribed NOF should be 1:20. Where 10% of total deposits are in Nationalized Bank Deposit Account.
  • In addition, to register as a fund company, the minimum equity share capital of the company should be 5 lakhs of rupees. This will have to be paid in full. However, within one year after registration, the Net Ownership Fund (NOF) has to be increased to Rs.10 lakh.
    1. At least 10% of its outstanding deposits must be non-embedded term deposits.
    2. The ratio of deposit to prescribed NOF should be 1:20.

This includes equity share capital and free stock and does not include intangible assets as well as accumulated losses.

     The growing economy is giving hints about a great future but still, there are various places where the situation hasn’t change. Maybe it is because the business organization doesn’t focus on those areas. To solve this, credit cooperative societies are formed which comprises helping the members financially by giving them services like loans on reasonable interest rates.

Documents required for Nidhi Company registration.

When you are register for Nidhi Company then you have to submit following documents.

  • Self-attested copy of PAN card.
  • Self-attested copy of driver's license / voter identity card / Aadhar card / passport.
  • Self-attested copy of bank statement / telephone bill / mobile bill / electricity bill.
  • Passport size photograph.
  • Sample signature certificate.

     Many people in our country want to face financial services, but they are unable to take further steps due to lack of capital. The main objective of setting up a fund company is to nurture the belt-tightening habits of its members so that if they prefer to save, they will not have any difficulty in meeting their financial needs arising from time to time. In addition to this there are many unexpected benefits of setting up a Nidhi funding company.