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Private Lenders without NBG Registration will Have no Right to Issue Loans

Private lenders that are not registered as loan issuing bodies at National Bank of Georgia (NBG) will be banned to issue secured loans to physical bodies.

Under new amendments to the regulations for credit-information bureaus, financial organizations will not have voluntary option to cooperate with bureaus and all organizations under the NBG regulations will be obliged to deliver information to the Bureau. Moreover, borrowers will be also able to check information about themselves in the Bureau three times a year.

At this stage, there is only one credit-information bureau on the market.
Private lenders who are not registered at NBG as loan issuing bodies will be banned to issue secured loans to physical bodies. Moreover, according to amendments to the Civil Code, based on the contract agreement, immovable property of the borrower or other body cannot be used as a loan guarantee.