In Maharashtra one Act covers both lending and pawnbroking: the Maharashtra Money-Lending (Regulation) Act, 2014. A gold-loan or girvi shop that holds pledged ornaments is a money-lender under it and needs a money-lending licence for each place of business — there is no separate pawnbroker’s licence.
Which law covers you
- Maharashtra Money-Lending (Regulation) Act, 2014 (Mah. Act VIII of 2014), in force from 16 January 2014, replacing the Bombay Money-Lenders Act, 1946.
- Maharashtra Money-Lending (Regulation) Rules, 2014 — the forms, fees and registers.
“Money-lender” includes a pawn-broker, and a pawn-broker is a money-lender who takes goods in pawn as security (section 2). So a shop lending against gold needs the money-lending licence, and a separate one for every shop. Banks and NBFCs are outside the Act.
Who issues the licence
You apply to the Assistant Registrar of money-lending for your taluka, who inquires and forwards the file to the District Registrar, who grants the licence (sections 5 and 6). In practice these are officers of the Co-operation Department: the District Deputy Registrar of Co-operative Societies, on the taluka Assistant Registrar’s recommendation. Appeals go to the Divisional Joint Registrar and then to the Additional Commissioner and Special Registrar, Pune. In Scheduled Areas the Gram Sabha must recommend the application.
Apply online on Aaple Sarkar
The application is an Aaple Sarkar service of the Co-operation, Marketing and Textiles Department — “Money Lending License Issuance” (service 4201) and “Money Lending License Renewal” (4202) — with a statutory time limit of 60 days. From April 2026 the Commissioner has asked for applications online only.
- Open the service on Aaple Sarkar and register with your mobile number if you have no login.
- Fill Form No. 1: the true name of the business and its manager, the partners or directors, every place of business, the capital you will invest, last year’s lending figures, and any earlier licence.
- Pay the licence fee online or by treasury challan and attach the challan copy; on a renewal, the inspection fee too.
- Upload the documents, submit, and note the application number.
- The Assistant Registrar inquires and the District Registrar decides — within two months, per the district offices.
Timing matters: a fresh application goes in on or before 31 December, and a renewal within the three months before 31 March. The office refuses a renewal filed more than 60 days after expiry.
Documents to keep ready
The Rules list the particulars of Form No. 1 rather than a document checklist, and the portal itself shows none. Keep ready:
- Form No. 1 with the particulars above, one per place of business
- Treasury challan or online receipt for the licence fee (and the inspection fee on renewal)
- Partnership deed or company papers, if not a proprietorship
- Proof of the premises (rent agreement or ownership)
- Identity and address proof, PAN and photographs of the proprietor or partners
- A character or police certificate and an affidavit — asked for by many offices, though not named in the Rules
Fees — and no security deposit
| Item | Amount in the Rules |
|---|---|
| Licence fee, every application (Rule 10) | ₹500 |
| Renewal filed after expiry (Rule 10) | ₹1,000 |
| Inspection fee on renewal (section 12, Rule 11) | 1% of the maximum capital used in the year, or ₹50,000, whichever is less — payable within 10 days of assessment; renewal is refused until it is paid |
| Duplicate licence (Rule 15) | ₹300 |
| Security deposit | None — the Act asks for no deposit from the lender |
The fee is not refunded if the licence is refused (section 5). For a shop with ₹20 lakh working in the business, the inspection fee comes to ₹20,000 a year — budget for it as the real cost of the licence.
Validity and renewal
A licence is valid from the day it is granted until the following 31 March(section 10), and stays valid while a renewal filed in time is pending. Renew within the three months before expiry; a renewal filed late costs ₹1,000 and one filed more than 60 days late is not accepted at all. Tell the District Registrar of a new partner within 15 days and of a change of address within 7 days (Rules 6 and 7).
Interest you may charge
The government fixes the maximum rates for secured and unsecured loans by notification (section 31). The rates district registrars were restating in February 2026 are 15% a year on secured loans and 18% unsecured for non-farmers, and 9% and 12% for farmers — a gold loan is a secured loan. The notification itself is not published online, so confirm the figures with your District Deputy Registrar before printing a rate.
Two rules in the Act itself matter more than the percentage: no compound interest (section 31(2)), and total interest can never exceed the principal (section 31(3)). Charging more than the ceiling is fined ₹25,000, and ₹50,000 the second time (section 44).
What the licence obliges you to do
- Keep the books in the prescribed forms: cash book and ledger (section 24, Forms 6 to 9) and a capital account (Form 13).
- Give the borrower a statement of every loan within 30 days, or a pass book (Forms 15 and 16), with a copy to the Assistant Registrar; a receipt for every payment (Form 11); and a statement of account within 45 days of the year end (section 25, Form 14).
- Give a signed receipt for every pledged article — description, estimated value and the loan amount — and keep the duplicates in a separate register (section 24(5), Form 12). On full repayment, cancel the papers and hand the pledge back.
- Display the licence and a signboard with the business name, licence number, area and validity (Rule 14). Never take a blank or incorrect promissory note (section 23).
- Allow inspection of the books (section 16). A court will not enforce a loan made without a valid licence (section 13), and can disallow interest where the statements were not given (section 28).
Unredeemed pledges
The Act sets no auction procedure for a licensed lender’s unredeemed pledges — its seizure and notice rules apply to unlicensed lenders. The general law of pledge applies (section 176 of the Indian Contract Act): give the pawner reasonable notice, then sell, and account for the surplus. Put your notice period and sale terms on the pledge receipt itself. Our auction guide covers the notices and a clean paper trail.
Lending without a licence
Lending without a licence carries up to five years’ imprisonment and a ₹50,000 fine (section 39), lending under a false name or from a place not on the licence up to a year, five years for a repeat (section 41), and the police can seize pledged goods held by an unlicensed lender and return them to the borrowers (section 17). In February 2026 the government told the Assembly the Act will be tightened further, with district committees and flying squads — no Bill had been tabled by September 2026.
How software fits in
The forms the Rules prescribe are paper forms, and inspectors ask for them in that shape. GoldKhata keeps the loan ledger, the pledge register and the receipts as you work and prints them in statutory column order; the pledge receipt carries the article description, value and loan amount the Act asks for, and your licence number and terms. Set the interest method to simple — the Act allows nothing else here — and the software keeps every loan inside the ceiling you set.
Sources
Frequently asked questions
Do I need a separate pawnbroker licence in Maharashtra?
No. Under the 2014 Act a pawn-broker is a kind of money-lender, so the money-lending licence covers a shop that holds pledged gold. You do need a separate licence for each place of business.
How much does the licence cost?
₹500 for every application under the Rules, ₹1,000 if a renewal is filed after expiry, and on each renewal an inspection fee of 1% of the maximum capital used in the year, capped at ₹50,000. There is no security deposit.
How long is the licence valid?
Until the 31 March after it is granted, whatever the month you applied. Renew in the three months before expiry; the office will not accept a renewal more than 60 days late.
Can I charge compound interest on a gold loan?
No. Section 31(2) of the Act bars compound interest, and section 31(3) caps total interest at the principal. Charge simple interest within the notified ceiling.
What interest rate can I charge?
The ceiling the government notifies — 15% a year on secured loans for non-farmers as restated by district offices in 2026 — confirmed with your District Deputy Registrar, since the notification is not published online.
Can I apply on paper?
The Rules allow Form No. 1 in person or by registered post, but from April 2026 the Commissioner has asked for online filing on Aaple Sarkar. Apply online and keep a printed copy for the office.