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Commercial Banks Raise Interest Rates on Individual Loans

Commercial Banks Raise Interest Rates on Individual Loans

Commercial banks have raised interest rates on individual loans. Namely, in February the annual interest rate on a long-term (+10 years) GEL denominated mortgage loan made up 15.71% on average, up 204 base points compared to the previous month (13.67% as of 01.01.2016).

The auto loan (up to 10 years) has seen an averaged 50 base point growth from 16.5% to 17%. Pawn loan interest rates have increased to 18.75% from 18.53%; The interest rate on a consumer loan with about 1-year maturity period has increased to 17.37% from 17.29%, while the consumer loan with about 10-year maturity period has decreased to 15% from 17.78%.

The retail loans portfolio accounts for 807 billion GEL, including 4.4 billion GEL mortgage loans.