Below is the summary of the MFIs based on four parameters
|Parameter||NBFC-MFI||Section 8 Companies||Cooperatives and Mutually aided cooperative societies||Societies and Trusts||Nidhi Company|
|Registration Under||Registered under Companies act 2013 and with Reserve Bank of India||Registered under Companies act 2013||Multi-State Cooperative Societies Act, 2002||Societies Registration Act, 1860 and / or Indian Trust Act 1882||Registered under Companies act 2013|
|Net Worth||Minimum net owned funds of 5 crore. Fo North Eastern requirement is ` 2 crore||No minimum requirement||No minimum requirement||No minimum requirement||No Minimum Capital Requirement|
|Recommended For||Poor and lower income group||Non-Commercial Banking and NPO||Non-Commercial Banking and NPO||where members have a common interest||Poor and lower income group|
|Rate of interest||1) The average base rate of five largest commercial banks multiplied by 2.75 per annum|
2) cost of funds plus margin cap of 10% for MFIs having loan portfolio above ` 100 crore and 12% for those with loan portfolio less than ` 100 crore
The lower of (1) and (2)
|Same as NBFC-MFI||Decided and Approved by the Board of Directors||Decide and approved by members at general meetings and by the committee||Maximum Rate of Interest on Loan = 7.5% + Maximum rate offered on deposits.|
A nidhi company is a type of company in the Indian non-banking finance sector, recognized under section 406 of the Companies Act, 2013. Their core business is borrowing and lending money between their members.
Nidhi companies are governed by Nidhi Rules, 2014. They are incorporated in the nature of Public Limited company and hence, they have to comply with two set of norms, one of Public limited company as per Companies Act, 2013 and another is for Nidhi rules, 2014. No RBI approval is necessary to register the company, as RBI has specifically exempted this category of NBFC in India to comply its core provisions such as registration with RBI etc. Every nidhi company must ensure within a period of one year from the commencement that it has not less than 200 members.