Demand for pawnshop loans is expected to increase following the National Bank of Georgia’s new lending restrictions, Lasha Bagaturia, Head of Business Development at Creditinfo Georgia, said on the Business Morning program. He noted that some borrowers will temporarily lose access to consumer loans and other retail banking products, increasing demand for alternative financing.
According to Bagaturia, around 70,000 people earning GEL 1,500–2,500 per month could be affected if their monthly loan payments exceed the 25% debt-service limit. The new rules will prevent them from taking out additional loans until their repayment burden falls below the threshold. He expects demand for pawnshop products to rise initially before stabilizing.
From 2027, the National Bank will gradually expand the income threshold for the 25% payment-to-income (PTI) limit. From February 1, the rule will apply to borrowers earning up to GEL 2,000 per month, with the threshold increasing to GEL 2,500 from September 1. The regulator says the changes aim to reduce over-indebtedness and safeguard financial stability.
Bagaturia also reported strong growth in consumer lending. Consumer loan portfolios in the banking sector have increased by around 13% this year and approximately 50% compared with 2024. Meanwhile, the number of borrowers recorded by Creditinfo has exceeded 2 million for the first time and remained above that level for the past two months.
