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NIDHI COMPANY

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A Nidhi company is incorporated with an objective of imbibing the habit of thrift and savings amongst its members. Their dealings are restricted to its members and the membership is limited. The source of funds is in the contribution from its members. Within these companies the members make deposits and these deposits are used to give secured loans to the members at a reasonable interest rate. The basic idea of a nidhi company is to save its members from the exploitation of money lenders who charge high interest rates.


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