The Mutual Benefit Finance Companies also called as “Nidhis”, are the non-banking finance companies that enable its members to pool their money with a predetermined investment objective. The main sources of funds are share capital, deposits from its members, deposits from the general public.
In other words, any company which has been notified by the Central Government as Nidhis under the section 620A of Companies Act, 1956 work as a mutual benefit finance company. These are one of the oldest forms of non-banking finance companies wherein the owners of the company are also its clients and pool their resources with the intent to secure loans at a low interest rate at the time the funds are required.
In 2020, Mutual Benefit Group posted consolidated assets of $276.3 million. Click here to access the 2020 Annual Report
MBFC
means
Mutual Benefit Financial Company
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