How to Start a Gold Loan (Girvi) Business in India
Many jewellers already lend informally against gold and want to put the business on a firmer footing. This guide outlines the practical pieces that make a girvi operation reliable and defensible.
Get the legal and compliance basics right
Money-lending is regulated at the state level in India, and requirements vary. Before scaling a girvi business, speak with a chartered accountant or lawyer about the licences, record-keeping, and tax obligations that apply where you operate. This guide is educational and not legal advice.
Build valuation and custody discipline
Consistent valuation protects your capital. Weigh every item, record purity, and photograph it at intake. Store pledged ornaments securely and issue the customer a clear receipt that identifies the item.
- Weigh and record purity for every pledge.
- Photograph the item at intake.
- Store securely and issue a dated receipt.
- Collect and verify customer KYC.
Keep transparent records from day one
The single biggest upgrade over informal lending is clean records: who pledged what, when, at what rate, and what has been paid. Transparent interest that the customer can see reduces disputes and builds repeat business.
Frequently asked questions
Do I need a licence to run a girvi business?
Money-lending rules are set by each state and often require registration or a licence. Check your state's requirements with a professional before you begin.
Run your girvi and billing in one place
SwarnaMitra keeps your loans, customers, gold schemes and GST invoices together — with transparent interest and automatic reminders.
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