The upward trend in loan costs continues in Georgia. In July, the average interest rate reached 13.5%, compared to 12.9% during the same period last year. Loans issued in GEL rose more sharply, with the average rate increasing by 1.2 percentage points to 15.7%.
When asked about the situation in the microfinance sector, Nino Devdariani, Chair of the Microfinance Organization Association, said that trends there differ from the banking sector. She explained that operating expenses per loan and interest-related costs are gradually declining, giving MFOs the ability to offer cheaper and more competitive products.
Devdariani pointed out that over the past five years, the sector’s returns have steadily decreased, from around 24–25% last year to roughly 23% in 2025. She noted that although other expense categories haven’t improved significantly, the drop still signals rising efficiency in the sector. According to her, this efficiency provides the foundation for MFOs to reduce loan costs further and compete more strongly, particularly in the new segment of loans up to 200,000 GEL.
