The national Bank has decided to ease lending rules
The financial stability Committee of the National Bank of Georgia has decided to simplify the issuance of loans to civilians, according to a statement on the national Bank's website.
Since January 1, 2019, the national Bank of Georgia has taken a number of measures to tighten the rules for issuing loans. In particular, banks and financial organizations can only give credit after a detailed analysis of the financial situation of the person who wants to get a loan and are guided only by net income. In addition, there is a limit on the amount of monthly loan payments, loan terms, and it is prohibited to issue amounts up to 200 thousand lari in dollars.
"The national Bank has decided to simplify the regulation of lending to individuals. this implies that the lending entities will have a reduced administrative burden associated with lending to consumers, and they will be able to become more flexible," the report says.
According to the national Bank, among the benefits will be changing the income boundaries to determine the loan service ratio.
At the same time, it is noted that the basic principle of regulation will remain the same and creditors should not impose such obligations on a person that will cause financial difficulties.
At the same time, the national Bank notes that after the introduction of the new lending system, the growth of lending to individuals slowed down and began to correspond to income.
According to banking rules, from January 1, 2019, the amount and rate of loans depends on the recipient's income. In particular, four groups of loan recipients were identified - up to one thousand lari, from one to two thousand lari, from two to four thousand lari, and four thousand lari.
Also set the maximum length of the loan. A mortgage loan is not issued for more than 15 years, a consumer loan secured by property for more than 10 years, a car loan for more than 6 years, and other types of loans for more than 4 years.
In December 2019, the annual growth of loans amounted to 15.9%, excluding the effect of the exchange rate, which is mainly due to the growth of loans issued to legal entities.
At the same time, the national Bank believes that the increase in the threat of coronavirus may reduce the pace of lending, which will bring the volume of loans to GDP closer to the long-term trend.
sputnik-georgia.ru
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The national Bank has decided to ease lending rules
The financial stability Committee of the National Bank of Georgia has decided to simplify the issuance of loans to civilians, according to a statement on the national Bank's website.
Since January 1, 2019, the national Bank of Georgia has taken a number of measures to tighten the rules for issuing loans. In particular, banks and financial organizations can only give credit after a detailed analysis of the financial situation of the person who wants to get a loan and are guided only by net income. In addition, there is a limit on the amount of monthly loan payments, loan terms, and it is prohibited to issue amounts up to 200 thousand lari in dollars.
"The national Bank has decided to simplify the regulation of lending to individuals. this implies that the lending entities will have a reduced administrative burden associated with lending to consumers, and they will be able to become more flexible," the report says.
According to the national Bank, among the benefits will be changing the income boundaries to determine the loan service ratio.
At the same time, it is noted that the basic principle of regulation will remain the same and creditors should not impose such obligations on a person that will cause financial difficulties.
At the same time, the national Bank notes that after the introduction of the new lending system, the growth of lending to individuals slowed down and began to correspond to income.
According to banking rules, from January 1, 2019, the amount and rate of loans depends on the recipient's income. In particular, four groups of loan recipients were identified - up to one thousand lari, from one to two thousand lari, from two to four thousand lari, and four thousand lari.
Also set the maximum length of the loan. A mortgage loan is not issued for more than 15 years, a consumer loan secured by property for more than 10 years, a car loan for more than 6 years, and other types of loans for more than 4 years.
In December 2019, the annual growth of loans amounted to 15.9%, excluding the effect of the exchange rate, which is mainly due to the growth of loans issued to legal entities.
At the same time, the national Bank believes that the increase in the threat of coronavirus may reduce the pace of lending, which will bring the volume of loans to GDP closer to the long-term trend.
sputnik-georgia.ru
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