Some of the key advantages of Nidhi Company are mentioned below in the following points. The points are:

• Easy Formation: A Nidhi company can be formed with very less members and a limited amount (10 lakhs Rupees) of capital in a very short time.
• Lower Risk: A Nidhi company can provide loans and accept deposits only to the members who are incorporated with Nidhi Company.
• A Safe Savings Scheme: There are so many saving instruments which are not regulated by RBI hence having a higher level of risk but that is not the case with Nidhi company. As Nidhi company is legally regulated by the Ministry of Corporate Affairs and recognized by the Companies Act, 2013 under section 406.
• Simple Seamless Process: A few essential documents and a minimum of 7 members are required to incorporate a Nidhi company.
• Limited Requirement of Capital: As per the RBI’s set up Nidhi guidelines 2014, a capital of 10 lakh rupees is only required to register for a Nidhi company.
• No Interference Outsiders: In a Nidhi company only registered members of the company can only take decisions along with the top management, no outside interference takes place in the company to manipulate the company’s financial decisions.
• Good Instrument for Regular Small Savings: For people who fall in the category of lower and middle-income, Nidhi company is a very good savings option for them as it possesses very less risk and provides a small amount of interest rate upon the deposits made by the members.