24.Dec .2020 14:00

Banks' Income from Individuals’ Loans Down by 107 MLN

Banks' Income from Individuals’ Loans Down by 107 MLN
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The income of Georgian banks from individuals’ loans is decreased by 107 million GEL in 11 months of 2020 and amounted to 1.85 billion GEL.

Now, the loan portfolio of individuals totals 18.6 billion GEL, which is 51% of the total bank loans.

According to the National Bank, there are 3 million loan agreements between commercial banks and individuals. 1.3 million of them are consumer loans, 112 thousand - mortgages; 251 thousand business loans; 202 thousand pawn loans are 1.2 million loans taken for other purposes.

The average interest rate on loans to individuals is 12.34%, while the average interest rate on loans to legal entities is 6.62%. The difference between the rates is primarily due to the different risks and currency composition of these loans.

However, the portfolio of overdue loans reached 570 million GEL by November 1, which is 48 million GEL m-o-m. Despite this growth, the rate of arrears in the banking sector remains low, at 1.54%, although the National Bank predicts that the volume of arrears will increase significantly in the coming months.