Georgian citizens have pledged a total of 1.24 billion GEL in gold and jewelry to microfinance organizations (MFOs), according to data submitted to the National Bank of Georgia.
Pawn loans remain the most profitable segment for MFOs, driving a 36% annual growth in this portfolio. The sharp increase in gold prices has further boosted the value of valuables held by these institutions.
Currently, pawn loans account for 77% of microfinance organizations’ total credit portfolios, highlighting their central role in the sector’s activities.
In the first nine months of 2025, 757,829 pawn loans were issued, with an average loan size of GEL 1,807. By comparison, the average pawn loan in the same period last year was GEL 1,350, reflecting a 34% increase. Analysts attribute the rise primarily to higher gold prices, which allow borrowers to secure larger loans against the same items of jewelry.
The data indicates that microfinance organizations continue to rely heavily on pawn lending, a segment that remains in strong demand among Georgian citizens amid fluctuating gold prices.
