Georgian citizens currently have GEL 1.48 billion worth of gold and other jewelry pledged in microfinance organizations (MFOs), according to financial data submitted to the National Bank. Pawnshop-backed loans remain the sector’s most profitable segment, driving a 39% annual increase in this portfolio - up by GEL 456 million to GEL 1.63 billion, which now makes up 79% of the sector’s total GEL 2 billion loan book.
Beyond precious metals and jewelry, MFOs hold GEL 135 million worth of vehicles and GEL 7.6 million in real estate as collateral. The rising market price of gold is also significantly boosting the value of assets held by MFOs, further strengthening their pawn-lending business model.
In the first quarter of 2026, MFOs generated GEL 135 million in interest income - a 43% annual increase - largely driven by pawnshop lending, which alone produced GEL 91.8 million in interest, up 57% year-on-year. Meanwhile, commission and fee income fell to GEL 18 million, an 18% decline from last year.
Overall, Georgian MFOs posted a net profit of GEL 51.1 million in Q1, marking a 76% annual increase, or GEL 22.2 million more than the same period in 2025. Operating expenses remained relatively stable, with GEL 29 million spent on salaries, GEL 4 million on rent, GEL 2.6 million on depreciation, and GEL 7.7 million on other non-interest costs.
