For many jewellers, girvi (gahan in Marathi) — lending money against pledged jewellery — is as important as sales. It is also where paper registers cause the most trouble: missed due dates, disputes about interest, and items that can't be traced quickly. This article is general information; money-lending is regulated by state law, so confirm the rules that apply to you.
What to record for every pledge
- A running record (receipt) number.
- Customer name, mobile number and address, with ID proof as required.
- Description of each item, its gross and net weight, and purity.
- Amount given, interest rate and how interest is calculated.
- Pledge date and due date.
- Signatures on the pledge receipt, and notes on the item's condition.
Calculating simple monthly interest
Most girvi uses simple interest at a monthly rate:
Interest = principal × monthly rate × number of months
Example: ₹50,000 at 1.5% per month for 4 months = 50,000 × 0.015 × 4 = ₹3,000, so the customer pays ₹53,000 to release the item. Agree in writing how part-months are counted (by day, half month or full month) and whether there is a minimum period — most disputes start here.
Handling due dates and overdue pledges
- Review overdue pledges every week, not at year-end.
- Remind customers before the due date — a call or message saves the relationship.
- Follow your state's legal process and the terms agreed with the customer before taking any action on an unredeemed pledge.
Releasing a pledge
- Calculate interest to the release date.
- Collect principal plus interest and give a receipt.
- Return the item and have the customer sign for it.
- Mark the record released with the date.
The legal basics
Lending money as a business is governed by state money-lenders acts — in Maharashtra, for example, the Maharashtra Money-Lending (Regulation) Act, 2014. These laws typically require a licence, prescribed registers and receipts, and limit the interest that can be charged. Check your state's act and current notifications, and keep your records in the form they require.
Why jewellers move girvi to software
- Every active and overdue pledge on one screen, with the total amount out.
- Search by customer or item in seconds instead of flipping pages.
- Printed receipts with the same details every time.
- Reports for any period for your accountant.
Infovion JMS shows the interest built up on every pledge, records the interest received at release, and exports girvi loans and interest to Tally for your CA. See girvi software in JMS.
