Georgia’s microfinance organizations reported profits of GEL 139 million in 2025, a 4% increase compared to the previous year, according to the National Bank. This growth occurred despite two firms, MBC and Crystal, transitioning into microbanks, which altered the sector’s dynamics.
The credit portfolio of microfinance organizations declined slightly from GEL 2 billion to GEL 1.9 billion after these transitions. At the same time, the share of pawnshop-backed loans grew sharply, rising to 78% of total loans compared to 56% in 2024, making pawn lending the dominant business model for the sector.
By the end of 2025, customers had pledged GEL 1.34 billion in gold and jewelry, GEL 137 million in real estate, and GEL 317 million in vehicles to secure microloans. These figures highlight the sector’s continued reliance on collateral-based lending.
Overall, the sector showed profitability growth while adjusting to structural changes, emphasizing the importance of secured loans in maintaining financial stability for both institutions and clients.
