1. Secured Loans to Members

• Nidhi Companies are permitted to provide loans only to their registered members.
  
• All loans must be secured with acceptable collateral as per the Nidhi Rules, 2014.
  
• Unsecured lending is strictly prohibited.
  
• The security must be sufficient to cover the loan amount, along with interest.
  
• The purpose of loans should be for the personal or financial needs of members.
  

2. Gold Loan or Jewellery Loan

• One of the most common loan types is against gold ornaments or jewellery.
  
• These loans are short-term and secured by the gold pledged by the member.
  
• The company must maintain valuation records and secure storage.
  
• The loan amount is generally a percentage of the gold’s market value.
  
• A default in repayment allows the company to recover dues through pledged assets.
  

3. Loan Against Fixed Deposit Receipts

• Members who hold fixed deposits with the company can avail of loans against their FD receipts.
  
• The FD remains as security until the loan is repaid in full.
  
• The loan amount is usually up to 75–90% of the FD value.
  
• Interest on such loans is charged in addition to interest earned on the deposit.
  
• This type of loan is low-risk and ensures member retention.
  

4. Loan Against Immovable Property

• Some Nidhi Companies offer loans secured by immovable property owned by the member.
  
• This includes residential or commercial land and buildings.
  
• Proper documentation, legal title verification, and valuation are required.
  
• The loan tenure is usually longer with equated monthly installments (EMIs).
  
• These loans require careful management to avoid legal complications.
  

5. Loan Against Deposits or Shares

• Members can also avail of loans against recurring or savings deposits held with the company.
  
• Some companies may permit loans against the value of shares held by the member.
  
• These loans are of small to medium size and carry flexible repayment terms.
  
• The company must record the lien on such deposits or shares.
  

• On repayment, the lien is released and control is returned to the member.