Nidhi Companies can provide loans to its members' subject to certain limits as per Nidhi Rules, 2014. Rakesh being a member of a Nidhi Company wants to know the limits mentioned under Nidhi Rules, 2014 and also seek your

According to Rule 15 of Nidhi Rules, 2014, a Nidhi company can provide loans only to its members. The loans given by a Nidhi company to a member shall be subject to the following limits, namely: ₹2 lakhs, where the total amount of deposits of such Nidhi from its members is less than ₹2 crore; ₹7.50 lakhs, where the total amount of deposits of such Nidhi from its members is more than ₹2 crore but less than ₹20 crore; ₹12 lakhs, where the total amount of deposits of such Nidhi from its members is more than ₹20 crore but less than ₹50 crore; and ₹15 lakhs, where the total amount of deposits of such Nidhi from its members is more than ₹50 crore. However, where a Nidhi has not made profits continuously in the three preceding financial years, it shall not make any fresh loans exceeding 50% of the maximum amounts of loans specified in above mentioned clauses. A member shall not be eligible for any further loan, if he has borrowed any earlier loan from the Nidhi and has defaulted in repayment of such loan. Based on above provision, Rakesh cannot be granted 2nd loan as he has defaulted in repayment of 1st loan.