Regulatory AlertsGeorgia: lending & credit regulation
Partially regulatedNBG regulates microfinance; consumer/SME lending largely unregulated with AML oversight
- Lead regulator
- National Bank of Georgia
- Also involved
- Revenue Service (AML/CFT supervision for non-bank entities)
- Core law
- Law of Georgia on Microfinance Organizations (2006)
- Entry capital
- GEL 1,000,000 (Microfinance)
- Approval timeline
- 2-3 months for MFO license; immediate for general lending entities
- Customer assets
- No specific segregation mandate for non-bank lenders
- Data protection
- Law on Personal Data Protection · State Inspector's Service
- Sandbox
- No
Georgia maintains a dual-track lending regime. The National Bank of Georgia (NBG) strictly regulates and licenses Microfinance Organizations (MFOs) under the 2006 Law, imposing capital and prudential standards. General consumer and SME lending by non-bank entities is largely unregulated, provided the entity does not hold deposits or operate as a licensed MFO. Anti-Money Laundering (AML) obligations apply broadly to financial institutions and designated non-financial businesses.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Consumer lending | Unregulated General lending unregulated; AML applies if designated | — | — | — |
| SME / commercial lending | Unregulated Commercial lending unregulated unless deposit-taking | — | — | — |
| Microfinance | LicenceMicrofinance Organization License[1][2] Strict prudential standards and asset classification required | GEL 1,000,000 | — | National Bank of Georgia |
| Buy-now-pay-later | Unregulated Treated as general consumer credit if no deposit-taking | — | — | — |
| P2P lending platform | Uncertainverify with regulator No specific P2P framework; potential AML obligations | — | — | — |
| Credit bureau / scoring | Unregulated Private credit bureaus operate under data protection laws | — | — | — |
| Debt collection | Unregulated Regulated by general civil/commercial law, not NBG | — | — | — |
Market-entry checklist
- 1Determine regulatory trackConfirm if activities qualify as 'microfinance' requiring NBG license or general lending.
- 2Secure MFO license if applicableSubmit application to NBG with GEL 1m paid-in capital and fit-and-proper checks.
- 3Register with Revenue ServiceRegister as a reporting entity for AML/CFT compliance if not a bank/MFO.
- 4Implement data protectionEnsure compliance with Georgian Personal Data Protection Law for borrower data.
- 5Draft lending agreementsEnsure contracts comply with Georgian Civil Code and Consumer Rights Protection Law.