1. What Is Girvi?
Girvi (from Hindi/Urdu — meaning “pledged” or “mortgaged”) is the act of placing an asset as security against a loan. When you take a loan and offer your property, gold, or any valuable asset as a guarantee — that asset is said to be Girvi.
In simple words — if you ever hear someone say “zameen girvi rakh di” or “sona girvi rakha hai” — it means the person has pledged their land or gold to a lender in exchange for money.
Girvi is not ownership transfer. The asset stays with you (or is held by the lender). You get it back fully once the loan is repaid.
2. Girvi in Two Different Laws
Girvi covers two different legal situations — and they are governed by two separate laws.
Girvi on Immovable Property (land, house, shop) is called a Mortgage. It is governed by the Transfer of Property Act, 1882 — Sections 58 to 104.
Girvi on Movable Assets (gold, jewellery, valuables) is called a Pledge. It is governed by Section 172 of the Indian Contract Act, 1872.
The key difference is what you are pledging. Your land goes under mortgage law. Your gold goes under pledge law. Both are Girvi in everyday language — but they work differently in court.
3. Girvi on Property — How Mortgage Works
When you Girvi your land or house to a bank or lender, you are creating a mortgage on it.
The property stays in your name — you do not lose ownership. But the lender gets a legal charge on the property. If you fail to repay, the lender has the right to recover their money by taking possession of or selling the property — under the SARFAESI Act, 2002.
This is what happens every time someone takes a home loan or a loan against property (LAP) from a bank. The property is Girvi to the bank until the loan is fully repaid.
4. Types of Mortgage (Property Girvi)
The Transfer of Property Act, 1882 defines six types of mortgage. The most common ones in everyday real estate are:
| Type | How It Works |
| Simple Mortgage (Saada Rehan) | Property is pledged without handing over possession. Lender can sell it on default. |
| English Mortgage | Property is transferred to the lender with a condition that it returns to borrower on repayment. |
| Usufructuary Mortgage (Rehan-e-Tamam) | Borrower hands over possession — lender earns rent/income from the property until loan is repaid. |
| Equitable Mortgage | Created by depositing title documents with the lender — no separate deed required. Most common for home loans. |
| Mortgage by Conditional Sale | Property is “sold” to the lender on condition that the sale becomes void on repayment. |
5. What Is a Girvinama?
Girvinama (also called Mortgage Deed or Rehanama) is the written legal document that records the Girvi arrangement between a borrower and a lender.
It must mention:
- The names and details of borrower and lender
- A complete description of the property being Girvi — Khasra number, area, boundaries
- The loan amount and repayment terms
- The type of mortgage being created
- Consequences of default
A registered Girvinama is required for Simple Mortgage and English Mortgage — both must be registered at the Sub-Registrar’s office. Equitable Mortgage (the most common form used by banks) does not require registration — it is created by depositing original title documents.
6. Girvi on Gold — How Pledge Works
Gold Girvi (pledging gold or jewellery for a loan) is one of the most widely used credit tools in India — from formal banks to local pawnshops.
Under Section 172 of the Indian Contract Act, 1872, a pledge is the delivery of a movable asset as security for a loan. The person who pledges is called the Pawner (Girvikarta). The lender who holds the asset is called the Pawnee (Girvidaar).
Key rules:
- Banks and NBFCs can offer gold loans up to 75% of the gold’s current market value (Loan-to-Value or LTV ratio set by RBI)
- If the borrower defaults, the lender must give a 30-day public notice before auctioning the pledged gold
- Once the loan is fully repaid, the lender must return the pledged asset — refusing to return is a legal offence
As of April 2026, RBI has also introduced new guidelines allowing silver jewellery and coins to be pledged for loans — with LTV ratios ranging from 75% to 85% depending on the loan amount.
7. Who Can Offer Girvi Loans?
Not everyone can legally offer Girvi loans in India.
Banks and NBFCs (Non-Banking Financial Companies) registered with the Reserve Bank of India can offer mortgage loans and gold loans freely.
Local pawnshops, moneylenders, and jewellers offering Girvi loans must hold a valid Money Lending Licence under their state’s Money Lending Act. Every state has its own Act — with rules on maximum interest rates, documentation, and record-keeping.
Lending money against Girvi without a licence is illegal and can result in penalties and legal action.
8. Releasing a Girvi — What Happens After Repayment
When a borrower fully repays the loan:
For property Girvi — the lender must issue a No Objection Certificate (NOC) and execute a Mortgage Discharge Deed. This must be registered at the Sub-Registrar’s office to formally remove the charge from the property’s title.
For gold Girvi — the lender must physically return the pledged gold or jewellery. Any refusal after full repayment allows the borrower to send a legal notice, file a consumer complaint, or approach the police.
Never assume the Girvi is released simply because the loan is paid. Always get the discharge documented in writing — and registered, in the case of property.
9. SARFAESI Act — When a Lender Enforces Girvi
If a property borrower defaults on their loan, banks can enforce the Girvi under the SARFAESI Act, 2002 (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act).
Under this Act, banks can:
- Take symbolic or physical possession of the mortgaged property
- Sell the property through auction to recover the outstanding loan
- Do all this without filing a civil court case — which makes the process significantly faster
The borrower must receive a 60-day demand notice before the bank can take possession. During this window, the borrower can repay and reclaim the property.
SARFAESI applies only to banks and registered financial institutions — not to private moneylenders.
10. Girvi and Your Property Title
A Girvi (mortgage) on a property shows up in the Encumbrance Certificate (EC) — the document that records all registered transactions on a property.
When you are buying any property, always check the EC for an existing mortgage entry. If the current owner has taken a loan against the property and not yet repaid it, the Girvi will show on the EC.
A property with an undischarged mortgage is a red flag — do not buy it until the seller clears the loan, obtains the NOC, and registers the discharge deed. Only after that will the EC show a clear title.
11. Tips for Borrowers and Buyers
- Always get the Girvinama registered for property loans — An unregistered mortgage deed gives you weaker legal protection. For simple and English mortgages, registration at the Sub-Registrar’s office is mandatory.
- Check the EC before buying any property — An existing Girvi on the property you are buying must be discharged before the purchase. Buying a Girvi property without clearing it means inheriting the lender’s charge.
- Get the mortgage discharge deed after loan repayment — Do not accept a verbal assurance that your loan is closed. Insist on a written NOC and a registered discharge deed from the lender.
- Know your rights under SARFAESI — If your bank sends a possession notice, you have 60 days to repay and reclaim. Do not ignore SARFAESI notices — respond within the notice period.
- Only deal with licensed lenders for gold Girvi — Verify that the pawnshop or moneylender you are pledging gold with holds a valid money lending licence. Unlicensed lenders operate outside the law — recovery of your pledged asset becomes difficult.
12. Common Mistakes to Avoid
Not checking the EC for an existing Girvi before buying property
This is the most dangerous mistake in property purchases. If the seller has an undischarged mortgage, the bank’s charge travels with the property to the new buyer. Always verify the EC shows a clear title — with a discharge entry for any previous mortgage.
Not getting the discharge deed registered after loan repayment
Many borrowers receive their NOC from the bank and consider the matter closed. Until the discharge deed is registered at the Sub-Registrar’s office, the mortgage entry stays on the EC — creating problems in future sales and new loans.
Pledging property without understanding the type of mortgage
Different mortgage types have very different consequences. An Usufructuary Mortgage means handing over possession to the lender. Many borrowers sign without understanding this and are surprised when the lender takes over the property immediately.
Ignoring SARFAESI notices
Some borrowers assume that because they are in a loan dispute, the bank cannot act quickly. SARFAESI gives banks real powers — including possession without a court order. Ignoring a SARFAESI notice within the 60-day window is a costly mistake.
Pledging gold with unlicensed moneylenders for higher loan amounts
Unlicensed lenders sometimes offer higher loan amounts but charge exorbitant interest. If they default on returning your gold or demand unreasonable amounts, legal recovery is complicated because their operations are outside the formal system.
13. A Simple Example
Sunil owns a plot in Kanpur worth ₹50 lakh. He needs ₹20 lakh for his business. He approaches his bank and creates a Simple Mortgage on the plot — registering a Girvinama at the Sub-Registrar’s office. The bank disburses ₹20 lakh.
The plot remains in Sunil’s name. He continues to use it. But the bank’s charge appears on the EC.
Three years later, Sunil repays the full loan. The bank issues an NOC. Sunil’s lawyer prepares a Mortgage Discharge Deed, which is registered at the Sub-Registrar’s office. The charge is removed from the EC.
A buyer who checks the EC now sees a clear title — the Girvi was created, used, and properly discharged. Every step is documented.
Had Sunil skipped registering the discharge deed, the bank’s charge would have stayed on the EC permanently — blocking every future transaction on that plot.
14. FAQs
What does Girvi mean in real estate?
Girvi means pledging or mortgaging an asset as security for a loan. In real estate, Girvi specifically refers to creating a mortgage on immovable property — land or a building — in favour of a lender, governed by the Transfer of Property Act, 1882.
What is the difference between Girvi on property and Girvi on gold?
Girvi on property is a mortgage — governed by the Transfer of Property Act, 1882. The property is offered as security but the borrower usually retains possession. Girvi on gold is a pledge — governed by Section 172 of the Indian Contract Act, 1872. The lender physically holds the gold until the loan is repaid.
What is a Girvinama?
A Girvinama (Mortgage Deed or Rehanama) is the registered legal document recording the mortgage arrangement — the property details, loan amount, repayment terms, and consequences of default. It must be registered at the Sub-Registrar’s office for simple and English mortgages.
Can a bank sell my property if I default on the loan?
Yes. Under the SARFAESI Act, 2002, banks can take possession of and sell mortgaged property without filing a civil court case — after sending a 60-day demand notice to the borrower. The borrower has 60 days to repay and reclaim the property.
How do I remove a Girvi from my property title after repayment?
After full repayment, obtain an NOC from the lender and execute a Mortgage Discharge Deed. Register this deed at the Sub-Registrar’s office. Once registered, the mortgage charge is removed from the property’s Encumbrance Certificate — restoring a clear title.
Does a Girvi show up when someone checks the property records?
Yes. Any registered mortgage on a property appears in the Encumbrance Certificate (EC) issued by the Sub-Registrar’s office. This is exactly why checking the EC before buying any property is essential — to confirm there is no undischarged Girvi.
In Simple Words:Girvi is using your asset as a guarantee for a loan — whether it is your land, house, or gold. The asset is not sold — it is pledged. You get it back when the loan is repaid. But if you default, the lender has legal rights to recover their money from that asset. Always document Girvi in writing, register mortgage deeds, and — most importantly — get a registered discharge deed after repayment. A Girvi that is not properly closed stays on your title record and blocks every future transaction.