Some borrowers unable to qualify for bank loans under tighter lending rules may turn to microfinance organizations and pawn loans, Eurocredit Deputy CEO Irakli Tsurtsumia told BMG.
He expects the changes to trigger a modest shift in the financial market, increasing demand for pawn lending as borrowers seek alternatives after being rejected by banks. While the overall impact is unlikely to be substantial, Tsurtsumia says the rules will limit some consumers’ access to credit. He also cautioned that greater reliance on pawn loans could have negative social implications.
From February 1, 2027, the 25% payment-to-income (PTI) limit will apply to borrowers earning up to GEL2,000 per month, compared with the current GEL1,500 threshold. From September 1, 2027, the threshold will rise to GEL2,500.
