Lazika Capital remains among the few microfinance organizations in Georgia that do not engage in pawn lending, focusing instead on financing real economic activity, the company’s head Besik Shengelia told BMG. He said the company mainly operates in western Georgia and serves small agricultural businesses and economically active individuals.
According to Shengelia, Lazika Capital has no plans to enter the pawn-lending segment. While pawn-focused microfinance institutions are growing rapidly, the segment served by Lazika Capital is expanding more slowly due to different operating standards and strong market competition.
Shengelia said the company mainly works with borrowers who have informal income, unlike bank customers who generally have officially documented earnings. He noted that tighter regulations and standards have forced microfinance companies to use alternative methods to assess borrowers, including photographs, location data and video monitoring.
According to Shengelia, income verification rules introduced in 2019, along with the challenges of operating in mountainous areas such as Mestia and Khulo, have increased service costs. To reduce expenses related to field visits and transportation, Lazika Capital is developing, in coordination with the National Bank, a video monitoring system that will allow the company to remotely verify clients’ locations and economic activities.
