Gold Loan & Girvi Management: Top FAQs Answered for Indian Lenders

Running a Girvi or gold loan business in India involves dealing with customers, legal regulations, and financial risk. Whether you're just starting or already operating, many questions often arise about compliance, software usage, and RBI guidelines.

Here are the most frequently asked questions (FAQs) every gold loan provider should know — with simple answers that help you stay informed and compliant.

❓ 1. What is a Girvi loan?

Answer:
A Girvi loan is a traditional Indian term for pledging valuable items (usually gold) in exchange for a loan. It is similar to a gold loan and widely practiced in pawn shops and jewelry businesses.

❓ 2. Is it legal to offer Girvi loans in India?

Answer:
Yes, it is legal if you follow the state’s Money Lending Act and have a valid money lending license. Unlicensed lending can lead to legal consequences.

❓ 3. What are the RBI rules for gold loans?

Answer:

Maximum Loan-to-Value (LTV) ratio is 75%

Mandatory KYC verification

Gold must be valued fairly

30-day public notice before auction in case of default

❓ 4. Can small jewelers offer gold loans?

Answer:
Yes, but they must either register as NBFCs or obtain a money lending license from the local government authority.

❓ 5. What documents should I collect from the borrower?

Answer:

Aadhaar Card

PAN Card

Passport-size photo

Signed pledge agreement

Contact and address details

❓ 6. How is gold valued for loans?

Answer:
Gold is valued based on 22-carat market rates, averaged over the past 30 days. Many businesses use digital software to track updated prices.

❓ 7. What happens if the borrower doesn’t repay?

Answer:
You must issue a legal notice and wait for 30 days before auctioning the pledged item, as per RBI guidelines.

❓ 8. How can Girvi Management Software help?

Answer:
Our software helps you:

Manage customer records

Auto-calculate interest

Track due payments

Send reminders and receipts

Stay legally compliant

Securely store pledge and KYC data

❓ 9. Can I use this software in local languages?

Answer:
Yes! Girvi Management Software supports multiple Indian languages for better accessibility across regions.

❓ 10. How do I get started?

Answer:
Simply sign up, register your store, and begin entering customer and gold item details. You can also customize interest rates, tenure, and LTV ratios.

✅ Final Note

Girvi and gold loan businesses are a major financial support system in India. But without the right tools and knowledge, they can lead to confusion, errors, or legal problems. Use this FAQ as your go-to guide — and digitize your business today with Girvi Management Software for accuracy, compliance, and growth.