1. Basis of Loan Limits

• Loan limits in a Nidhi Company are based on the Net Owned Funds (NOF) of the company.
  
• The maximum amount that can be lent to a member depends on the total NOF available.
  
• The Nidhi Rules, 2014 specify clear thresholds linked to NOF brackets.
  
• Loans can only be issued to members and must be within the permitted ratio.
  
• The purpose of such limits is to ensure financial discipline and reduce risk.
  

2. Prescribed Lending Limits

• If Net Owned Funds are less than ₹2 lakhs, the maximum loan per member is ₹2,00,000.
  
• If Net Owned Funds are more than ₹2 lakhs but less than ₹20 lakhs, the loan limit is ₹7,50,000.
  
• If Net Owned Funds are more than ₹20 lakhs but less than ₹50 lakhs, the loan limit is ₹12,00,000.
  
• If Net Owned Funds are ₹50 lakhs or more, the loan limit is ₹15,00,000.
  
• These limits are subject to compliance with security and margin requirements.
  

3. Security and Collateral Requirements

• Loans must be backed by approved securities such as gold, fixed deposits, or immovable property.
  
• The type of collateral accepted is determined by the company’s internal policy.
  
• The value of the security must generally exceed the loan amount.
  
• Unsecured loans are not allowed under the Nidhi Rules.
  
• Proper documentation and valuation must be done before loan disbursement.
  

4. Loan-to-Deposit Ratio Compliance

• The total loan exposure of a Nidhi Company must not exceed 20 times its Net Owned Funds.
  
• The company must maintain a safe balance between deposits and loans to avoid liquidity risks.
  
• A portion of the deposits (minimum 10%) must be kept in unencumbered term deposits with scheduled banks.
  
• Exceeding the permissible loan ratio may result in penalties and compliance issues.
  
• Regular monitoring is essential to stay within the lending cap.
  

5. Interest Rates and Repayment Terms

• Interest rates on loans must not exceed 7.5% above the highest interest rate offered on member deposits.
  
• Repayment schedules depend on the nature of the loan and the type of security provided.
  
• Members must adhere to agreed repayment timelines to avoid penalties.
  
• The company must maintain records of interest charged, EMIs, and loan balances.
  
• Default management policies must be clearly outlined in the company’s bylaws.