Nidhi Company vs. Microfinance Company: A Comprehensive Comparison
Nidhi companies are a form of non-banking financial institutions that operate on the principles of mutuality and member collaboration. These entities are member-based and primarily cater to the financial needs of their own members. The term "Nidhi" itself translates to "treasure," highlighting the mutual financial assistance that members provide to one another. Nidhi companies accept deposits and offer loans exclusively to their members, who share a common bond, such as locality, profession, or a common objective.