Georgia's Microfinance Sector Closes 2024 with Strong Growth

The microfinance sector in Georgia closed 2024 on a strong note, marking substantial financial growth and robust lending activity. The sector achieved a notable net profit of GEL 133.6 million, marking an annual increase of GEL 8.2 million, or 6.6%, compared to 2023. Of the total profit, GEL 33.5 million was contributed to the state budget as profit tax.

At the close of 2024, the market consisted of 31 Microfinance Institutions (MISOs), down from 34 in the previous year. Additionally, the landscape continues to evolve, with two major institutions already transitioning out of the microfinance segment in early 2025 to operate as microbanks.

The sector's credit portfolio showed impressive growth, expanding by GEL 267 million within the year, reaching a total of GEL 1.97 billion. Predominantly, lending focused on individuals, with personal loans accounting for GEL 1.95 billion. Pawnshop loans maintained their position as the leading category, constituting GEL 1.101 billion—over half of the total portfolio.

Other significant segments included consumer loans at GEL 509.5 million, followed by trade and services (GEL 176.9 million), agriculture (GEL 119.1 million), and loans to legal entities (GEL 19.7 million). Throughout the year, MISOs provided financial services to approximately 889,760 individuals and 676 legal entities, underlining the crucial role these institutions play in supporting economic activity at the grassroots level.