How to Calculate Girvi Interest (with Examples)
By JewelKhata Team • 23 September 2026 • 6 min read
Girvi — keeping gold or silver as a pledge against a loan — is one of the oldest services a jewellery shop offers. The item is weighed, its purity noted, an amount is given, and interest runs every month until the customer comes back to release it. The maths is simple, but mistakes happen when a register has dozens of open entries, each with a different date and rate. This guide explains the standard monthly interest formula, shows worked examples, and covers the counting rules most shops follow.
The basic girvi interest formula
Most girvi in local jewellery shops is charged as simple monthly interest. "Simple" means interest is charged only on the original amount (the principal), not on interest already added. The formula is:
Then the total amount the customer must pay to release the item is:
Rates are usually spoken of per month ("2 rupaye saikda" means 2% per month, i.e. ₹2 per ₹100 per month). If a rate is given per year, divide it by 12 to get the monthly rate — 24% per year is 2% per month.
Worked example 1: a clean three-month loan
A customer pledges a gold chain and takes ₹50,000 at 2% per month. She returns exactly three months later.
- Interest per month = ₹50,000 × 2 ÷ 100 = ₹1,000
- Interest for 3 months = ₹1,000 × 3 = ₹3,000
- Total due to release the chain = ₹50,000 + ₹3,000 = ₹53,000
Worked example 2: a part month
A customer takes ₹20,000 at 1.5% per month and comes back after 4 months and 10 days. What counts as "a month" matters here.
A common practice in many shops is that a month once started is counted as a full month. Under that rule, 4 months and 10 days is charged as 5 months: ₹20,000 × 1.5 ÷ 100 × 5 = ₹1,500. Total due = ₹21,500.
Some shops instead charge day-wise for the part month. Then the 10 extra days are about one-third of a month: monthly interest is ₹300, so 4 months = ₹1,200, plus about ₹100 for the 10 days, for roughly ₹1,300 in total. Total due ≈ ₹21,300. Both methods are used; what matters is that you tell the customer your rule upfront and apply it consistently.
Worked example 3: the minimum one month
A customer takes ₹10,000 at 2% per month and returns after 12 days. Many shops charge a minimum of one month of interest on any girvi, however short. So interest = ₹10,000 × 2 ÷ 100 × 1 = ₹200, and the total due is ₹10,200.
Quick reference table
| Principal | Monthly rate | Time | Months charged* | Interest | Total due |
|---|---|---|---|---|---|
| ₹10,000 | 2% | 12 days | 1 (minimum) | ₹200 | ₹10,200 |
| ₹25,000 | 1% | 6 months | 6 | ₹1,500 | ₹26,500 |
| ₹50,000 | 2% | 3 months | 3 | ₹3,000 | ₹53,000 |
| ₹20,000 | 1.5% | 4 months 10 days | 5 | ₹1,500 | ₹21,500 |
| ₹1,00,000 | 1.25% | 8 months | 8 | ₹10,000 | ₹1,10,000 |
*Using the common rule that a started month counts as a full month, with a minimum of one month. Your local custom or licence terms may differ.
What about part-payments?
Customers often pay some interest in between, or return part of the principal. The cleanest approach is to record every payment with its date, and at settlement work out interest owed to date minus interest already paid. If part of the principal is returned, many shops recalculate interest on the reduced principal from that date onward. Whatever method you use, write it on the receipt so there is no argument later.
Common mistakes in girvi ka hisab
- Counting months from memory instead of from the date written in the register — a one-month error on a big loan is a real loss (or an angry customer).
- Mixing up yearly and monthly rates — 2% per month is 24% per year, not 2% per year.
- Not recording purity and weight of the item at the time of pledge — this protects both you and the customer if there is a dispute at release.
- Using different counting rules for different customers — pick one rule and apply it to everyone.
- Keeping girvi entries in the same book as regular sales, so open loans get lost.
How JewelKhata calculates girvi interest for you
JewelKhata has a dedicated girvi register. For each entry you record the customer, item, weight, purity, amount given, date and monthly interest %. From then on the app shows two numbers on the entry automatically: "Interest till today" and "Total due today". When the customer walks in, you open the entry and read the amount — no calculator, no counting months on your fingers.
Because JewelKhata is an offline, AES-encrypted app, the girvi register never leaves your phone — there is no cloud, no account and no server. It is protected by your PIN, fingerprint or Face ID and auto-lock, and a Decoy PIN can open a separate vault if you are ever pressured to show your records. You can take a password-encrypted backup file and keep it yourself, for example on Google Drive or WhatsApp. The app works in English, Hindi and Punjabi. Read more on the girvi software page at /girvi-software or the security page at /security.
Frequently asked questions
Is girvi interest simple or compound?
In most local jewellery shops it is simple monthly interest on the original amount. Some lenders compound unpaid interest after a period (for example yearly). If you do that, it must be clearly agreed and written on the receipt, and it must be allowed under your state rules.
How do I convert "2 rupaye saikda" into a percentage?
"2 rupaye saikda" means ₹2 per ₹100 per month, which is 2% per month (24% per year).
Does a part month count as a full month?
Commonly yes — many shops count a started month as a full month and charge at least one month. Others charge day-wise for the part month. Customs vary by region, so follow your local practice and licence terms and tell the customer the rule upfront.
Can JewelKhata show the amount due for a girvi on today's date?
Yes. Each girvi entry shows "Interest till today" and "Total due today", calculated from the amount, the date and the monthly interest % you entered.
Do I need internet to use the girvi register?
No. JewelKhata works fully offline and keeps all data on your phone. You can try it with the 7-day free trial on Google Play or the App Store — cancel before the trial ends and you will not be charged.