Gujarat calls it a certificate of registration, not a licence, and one Act covers both lending and pawnbroking: the Gujarat Money-Lenders Act, 2011. A shop that lends against pledged ornaments is a money-lender under it and registers with the District Registrar of Money-Lenders — online, on the state’s e-Cooperative portal.
Which law covers you
- Gujarat Money-Lenders Act, 2011 (Act 14 of 2011), in force from May 2011, replacing the Bombay Money-Lenders Act, 1946; amended in 2015 and 2018.
- Gujarat Money-Lenders Rules, 2013, amended in 2017 — the forms, fees and audit rule.
“Money-lender” expressly includes a pawn-broker (section 2), so there is no separate pawnbroker’s licence. Every place of business is registered, and banks and NBFCs are outside the Act.
Who issues the registration
The Act appoints a Registrar General of Money-Lenders for the state and Registrars and Assistant Registrars for notified areas (section 3); you apply to the Registrar with jurisdiction over your shop (section 6). The department behind them is the Registrar of Co-operative Societies in Gandhinagar (Agriculture, Farmers Welfare and Co-operation Department), and the portal’s own guide says the District Registrar approves the application.
Apply on the e-Cooperative portal
Since February 2022 new registrations and renewals are filed online only, in the “Money Lending” module of ecooperative.gujarat.gov.in.
- Register on the portal as a Money Lender — name, mobile, district, taluka, village or city, e-mail — verify the OTP, and choose “fresh” or “old certificate holder”.
- Log in → Money Lender → Application → Fresh Registration, and fill the Form 1 particulars: type and name of the business, the area, managers, principal place and branches, any earlier lending, the capital to be invested, the accounting year, earlier registrations or cancellations, other businesses, and whether anyone is a government servant.
- Upload the documents (next section) and submit.
- Pay online — the receipt comes by e-mail.
- After the District Registrar approves, the certificate (Form 3) is issued and the Monthly Statement, Yearly Audit Report and Register of Securities modules open on your login.
Documents to keep ready
The portal’s upload list:
- Proof of residence, and proof of the place of business (with the rent agreement if rented)
- A certificate from the police officer of your area
- A self-declaration and your signature and photograph
- Your income-tax return acknowledgement
- For a renewal: the last five years’ balance sheets and audit reports
- PAN and Aadhaar are asked for in practice, though not on the list
Fees and validity
| Item | Amount in the Rules |
|---|---|
| Registration (Rule 9) | ₹5,000 |
| Renewal (Rule 9) | ₹3,000 |
| Late-renewal penalty, within three months of expiry | ₹500 |
| Duplicate certificate | ₹500 |
| Security deposit | None — neither the Act nor the Rules ask for one |
| Validity (section 8) | Five years from the date of grant |
| Renewal window (Rule 3) | Within the six months before expiry; a renewal filed in time keeps the registration alive until it is decided |
Interest you may charge
The State Government notifies the maximum rates for secured and unsecured loans (section 33); an agreement above them is void, the excess is refundable and recoverable as land revenue, and a court will not decree more interest than the principal (section 28). Interest is counted by the half-month or full month (section 37). The current notified figure is not published online — the rate reported in 2025 was 12% a year on secured loans and 15% unsecured, and older Bombay-era notifications may still apply — so confirm the rate with the District Registrar before printing it.
What the registration obliges you to do
- The books the Act names (section 21): cash book, ledger, a register of debtors and a register of securities — the last one kept online on the portal, with the bill number, debtor, description of the pledge, where it is stored, the due date and its return or disposal. Keep the books for five years.
- Paper to the customer: a statement and pass book on the day of the loan, a receipt for every payment signed or thumb-marked by the borrower, a plain receipt for every pledged article with its description, estimated value and the loan, and a yearly statement within 45 days of the year end saying where the pledge is kept (section 22).
- Returns and audit: monthly statements on the portal, and an audit report within 30 days of the year end — by a state-specified officer up to ₹50 lakh of transactions, by a chartered accountant above that (section 23).
- Display the certificate and a signboard with the name and registration number (Rule 12). Registrars may inspect (section 12) and search without a warrant (section 19).
Unredeemed pledges
A pledged article may not be disposed of until two years after the final repayment date fixed in the agreement (section 25), and then only as the Contract Act allows — reasonable notice to the pawnor before the sale, surplus to the pawnor (sections 176 to 179). The Rules set no auction procedure, so write the notice period and the manner of sale on the pledge receipt, send the notice in a way you can prove, and record the sale in the register of securities. Our auction guide covers the paper trail.
Lending without registration
Lending without registration, charging above the ceiling, obstructing an inspection or tampering with a pawn is punished with imprisonment of up to two years and a fine of up to ₹25,000 — never less than three months and ₹5,000, six months and ₹10,000 for a repeat — and the offence cannot be compounded (sections 42 and 49). A court dismisses an unregistered lender’s suit (section 26). Gujarat Police run periodic drives against unlicensed lending — 136 arrests in one month of spring 2026 — and use the preventive detention law alongside the Act.
How software fits in
GoldKhata keeps the cash book, ledger and debtor register as you work, prints the pledge receipt with the description, value and loan the Act asks for, gives every payment a receipt, and has the monthly figures and the year-end statements ready for the portal and the auditor. Interest is counted at the rate you set — simple or compound, your first-month rule — and the two-year wait before any sale is counted for you.
Sources
Frequently asked questions
Do I need a separate pawnbroker licence in Gujarat?
No. The 2011 Act counts a pawn-broker as a money-lender, so the certificate of registration covers a shop that holds pledged gold. Each place of business is registered.
How much does the registration cost?
₹5,000 for a fresh registration and ₹3,000 for a renewal, with a ₹500 penalty for a renewal filed within three months after expiry. There is no security deposit.
How long is it valid?
Five years from the date of grant. Apply for renewal within the six months before expiry; a renewal filed in time keeps the registration alive until the Registrar decides.
What interest can I charge?
Up to the rate the government notifies for secured loans — reported as 12% a year in 2025 — and never more interest than the principal in total. Confirm the current notification with the District Registrar.
When can I sell gold that is not redeemed?
Not before two years from the final repayment date in the agreement, and then only after reasonable notice to the customer under the Contract Act, with the surplus paid back.
Is an audit compulsory?
Yes. An audit report goes on the portal within 30 days of the year end — by a state-specified officer for transactions up to ₹50 lakh, by a chartered accountant above that — and renewals need five years of balance sheets and audit reports.