MBC Microbank says tighter lending rules for individuals will have the strongest impact on microbanks’ loan portfolios. MBC CEO Gia Petriashvili said that the National Bank’s periodic review of regulations to reduce over-indebtedness is understandable, but it is difficult to assess in advance whether the new income thresholds have been set appropriately.
According to Petriashvili, the changes will mainly affect microbanks because lower-income customers are their key target segment. He said it will take time to determine whether the new limits are appropriate, noting that borrowers’ incomes have increased over the past six to seven years.
He also warned that demand for loans from this segment will not disappear and could shift to products where borrowers’ incomes are not assessed. “If the barrier is set incorrectly, demand will simply move to segments where income is not assessed,” Petriashvili said, pointing to pawn-type loans, including gold and auto pawn loans.
The National Bank’s new rules, effective from 2027, will apply to borrowers with monthly net incomes of GEL 1,500–2,500. Their maximum permitted monthly loan payment will be reduced from 50% to 25% of income. Petriashvili said borrowers who cannot meet the new PTI requirements may increasingly turn to microfinance products that do not require income assessment.
