Georgia’s National Bank will gradually extend a 25% debt-service-to-income (PTI) limit to borrowers earning GEL 1,500–2,500 per month from 2027. The threshold will rise from GEL 1,500 to GEL 2,000 on February 1 and to GEL 2,500 on September 1. The National Bank says the measure is aimed at reducing excessive indebtedness and maintaining financial stability.
The change means that borrowers in this income range will be able to allocate a smaller share of their income to loan repayments. For example, a borrower earning GEL 1,501 currently has a maximum monthly loan payment of GEL 750.50 under the 50% PTI limit. From September 2027, the maximum will fall to GEL 375.25.
Under a hypothetical three-year loan at a 15% annual interest rate, this would reduce the potential loan amount for a borrower earning GEL 1,500 from around GEL 21,650 to approximately GEL 10,825. The National Bank says the existing PTI thresholds, initially based on 2017 data and updated in 2022, no longer adequately reflect current income levels and debt burdens.
The regulator says the change is being introduced gradually to avoid a sharp one-time impact. According to the National Bank, higher nominal wages have moved borrowers into higher income categories without necessarily indicating a corresponding improvement in their real repayment capacity or risk profile. The revised thresholds are intended to align the PTI framework with current economic conditions and mitigate household over-indebtedness risks.
