Girvi (गिरवी) means “pledged” or “mortgaged” — putting gold into a lender’s custody as security for a cash loan. It is one of India’s oldest credit systems and still, for millions of households, the fastest honest money available: walk in with ornaments, walk out with cash in minutes, take the ornaments back when you repay.
One transaction, many names
The same transaction goes by different names across India:
- Girvi — North and Central India
- Pledge / pawn — the legal-English terms used in the state Acts
- Jewel loan — common in Tamil Nadu and bank usage
- Adamaana — the Kannada term you will hear in Karnataka
Whatever the name, the structure is identical: possession of the gold passes to the lender, ownership stays with the borrower, and redemption on repayment is the borrower’s absolute right.
How a girvi loan works at the counter
- The lender tests and weighs the ornaments and assesses purity.
- A loan is offered as a fraction of the gold value — the margin protects the lender if the account runs long or the rate dips.
- A pledge receipt (pawn ticket) is issued: loan number, date, amount, rate, ornament descriptions and weights.
- Interest accrues by the firm’s register method — see how the interest is calculated.
- On repayment of principal plus interest, the identical ornaments are returned against the customer’s signature.
- If the loan is never repaid, the lender may auction the pledge — but only after the statutory notice sequence. See the auction procedure.
Is girvi legal?
Fully — when licensed. In Karnataka the business sits under the Money Lenders Act and Pawn Brokers Act, 1961, with district-issued licences, notified interest caps and statutory registers. An unlicensed girvi lender is committing an offence and cannot enforce the loan in court. Our licence guide covers the process.
Girvi firm vs bank gold loan
| Local girvi firm | Bank / NBFC gold loan | |
|---|---|---|
| Speed | Minutes — cash at the counter | Hours to days, account needed |
| Paperwork | Pledge receipt; minimal KYC burden | Full KYC, account opening |
| Flexibility | Renewals, part payments, house grace rules | Fixed schemes and tenures |
| Relationship | Named customer of a family firm | Ticket in a queue |
| Regulation | State Acts, district licence | RBI-regulated |
Running a girvi business today
The trade is centuries old; the register does not have to be. GoldKhata is girvi software built inside a 20-year Karnataka firm — loans, register-method interest, printed pledge cards, WhatsApp receipts and the statutory books, on any phone. See how the options compare.
Frequently asked questions
What does girvi mean in English?
Pledged or mortgaged. 'Sona girvi rakhna' = to pledge gold — hand it to a lender as security for a loan while ownership stays with you.
Is girvi the same as selling gold?
No. In girvi the gold remains yours and comes back when you repay. Selling transfers ownership permanently. That redemption right is the heart of the arrangement and is protected by law.
What happens if I can't repay a girvi loan?
The lender must serve you written notices with a chance to redeem, and only then auction the gold; any surplus above the dues is refunded to you. Most firms prefer renewing the loan over auctioning — talk to the lender before the deadline.