The Boom in Auto Loans

As of May 2025, notable changes have emerged in the structure of loans issued to individuals in Georgia. According to data published by the National Bank of Georgia, transport loans—specifically those issued for purchasing vehicles—have shown the highest growth rate among all categories. This segment recorded an impressive 44% annual surge, bringing the total loan portfolio to 273 million GEL, which is 84 million GEL higher than the same period last year.

Behind this trend is the increasingly active car market, coupled with consumers’ growing desire to upgrade their vehicles more quickly through installment plans or credit. This shift is clearly influencing both the auto market and the banking system.

The total volume of loans issued to individuals now stands at 27.3 billion GEL, marking a 16% increase year-over-year. Consumer loans continue to dominate the lending structure, with a portfolio of 12.8 billion GEL—a 21% rise compared to last year. Consumer lending has traditionally led the way in Georgia due to its broad range of uses and relatively easy access.

Mortgages retain the second position, with a portfolio of 12.5 billion GEL and a 10% growth rate. This reflects the steady development and high demand in the real estate sector.

Installment loans rank third, totaling 539 million GEL, with a significant 35% annual increase. This growth indicates that consumer behavior is increasingly leaning towards the use of installment financing for purchases such as electronics, furniture, and other large items.

As mentioned, transport loans are in fourth place, followed by overdraft loans, which saw a 3% annual decline, now totaling 79 million GEL. This shift highlights a partial transformation in consumer financial behavior toward more structured borrowing practices.

Student loans remain the smallest category, with a portfolio of 8.3 million GEL. However, even in this segment, a 9% increase was recorded, indicating a growing need and accessibility for education financing, even though it still lags behind other loan categories in scale.

Overall, the landscape of Georgia’s credit market is becoming more diverse and tailored to the varying needs of consumers. The rapid growth in transport loans particularly emphasizes a trend towards greater mobility and alignment with modern lifestyle patterns in the country. New banking products and increasingly flexible lending conditions are further reinforcing this direction. As a result, the swift rise in vehicle loans is likely to continue throughout the year, bringing with it new financial behaviors and challenges for the banking sector.