Nilaiyur is a suburb in Madurai district in Tamil Nadu, South India.

The Boundary lies the village of sambakulam(East), Karuvelampatti (South), Koothiyar kundu (West) and Thirupparankundram (North).

The Literacy Rate is 65.76% The population of the kaitharinagar is 6444 including Males - 3184 and females - 3260.

In Kaithari nagar, the main occupation is weaving in Hand-loom sarees & power loom sarees, so the village name is called kaithari nagar.

Kaitharai Nagar in Nilayur panchayat got its name when handloom workers got houses through co-operative societies in the early 1980's.