As of the first quarter of 2026, microfinance institutions in Georgia have cars worth GEL 135 million pledged as collateral, according to financial data submitted by the sector. This represents a 17% increase year-on-year in auto-backed lending.
However, vehicles are not the largest form of collateral. The dominant category remains gold and jewelry, with a total value of GEL 1.48 billion, up 40% compared to last year. This growth is partly driven by rising global gold prices, which increase the value of pledged assets held by microfinance institutions.
Overall, pawn-based lending dominates the sector. Pawn loans account for 78% of total microfinance credit portfolios, indicating that lending activity is heavily concentrated in collateral-backed consumer loans rather than other types of financing.
In the first quarter alone, microfinance institutions generated GEL 135 million in interest income, up 43% year-on-year, with the majority coming from pawn loans. Interest income from this segment reached GEL 91.8 million, reflecting a 57% annual increase.
