Georgia’s microfinance sector recorded accelerated growth in 2026, with its loan portfolio increasing by 27.4% year-on-year to GEL 2.26 billion in the first nine months. According to Microfinance Association Chairperson Nino Devdariani, growth has nearly doubled compared with the approximately 15% annual average recorded over the past five years, driven largely by rising demand for microfinance products, particularly pawn loans.
Speaking on TV-program Business Course, Devdariani said gold-backed lending was the fastest-growing segment this year, reflecting increased demand for such products. She added that the sector’s profitability had also improved, allowing microfinance institutions to catch up with banks in terms of returns on equity. This was supported by portfolio expansion and improved operational efficiency, with the average operating cost of issuing an individual loan falling from around 11% to 9%.
Microfinance institutions generated a combined net profit of GEL 172.5 million in the first nine months of 2026, up by 57.7% year-on-year. As of September, loans secured by gold and other precious metals totalled to GEL 1.62 billion, accounting for 71.8% of the sector’s portfolio.
The total volume of pawn loans reached GEL 1.77 billion, marking annual growth of 29.75% and accounting for 78.8% of the sector’s overall loan portfolio.
