Gold Loan License in Nidhi Company

Nidhi Companies are allowed to do Gold Loan among it’s members only. This has been specifically done by bank and Non-Banking Financial Companies (NBFC) in India.

Gold Loan is one of the main streams of business for Nidhi Companies.

Gold loan by Nidhi Companies are very popular and are subject to certain rules and regulation as per Nidhi Rules, 2014. Here are the following conditions:

    1. The maximum finance against the gold shall be up to 80%.

    2. The maximum repayment period shall be 12 months.

    3. The rate of interest shall not exceed 7.5% plus the maximum rate of interest on gold loan.

    4. A Nidhi Company can advance maximum loan of 200,000 if deposits does not exceed Rs. 2 Crore.


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