The National Bank of Georgia increases the maximum maturity of unsecured consumer loans to 4 years.
According to the decision of the Financial Stability Committee of the National Bank of Georgia, starting from November 1st, the maximum term of consumer loans is extended by 1 year, allowing individuals to obtain 4-year consumer loans.
“The dynamics of credit activity and the declared policy, the National Bank of Georgia increases the maximum maturity of unsecured consumer loans to 4 years. Taking into account that the high growth rate of unsecured consumer loans recorded in 2022 has been reduced, while the activity remains at a sustainable level, from November 1 of this year, the maximum of this type of loans The term limit will increase from 3 years to 4 years. The National Bank of Georgia will continue to monitor consumer lending trends in the future, as healthy credit standards are an important prerequisite for household debt stability in this segment,” the decision of the Financial Stability Committee states.
Last August, the National Bank had initially reduced the maximum term for consumer loans from 4 to 3 years, and at that time, it was stated that this regulation would be in effect for a year. However, the decision has now been upheld beyond that initial timeframe.
It’s worth noting that the National Bank of Georgia postponed the Financial Stability Committee meeting twice, with the original date set for September 27.