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Regulations and Limitations​

Before familiarization with the regulations and limitations, it is crucial to distinguish two important conditions which apply to the person who takes an installment loan in the process of the Bank of Georgia’s installment loan.

  1. A customer may have a pre-approved limit (a so-called limit)

  2. A customer may not have a pre-approved limit at all or have an insufficient pre-approved limit. In such a case a customer requests a new application, which means that a customer should agree to check their information in the Credit Bureau and the Revenue Service (a so-called application)

The process for a successfully approved application is similar. E.x. if a customer has an approved 200 GEL limit which is not sufficient for purchasing the desired item and the customer creates an application for the amount of 1000 GEL which in case of approval will be sufficient for the purchase, then after approval the initial limit (200 GEL) becomes 1000 GEL, and the process will continue following the normal flow.

According to the rules of the National Bank of Georgia, it is also important that when a customer requests an installment loan with a 3-months duration with a monthly payment that exceeds the customer’s income factor, the system should automatically re-calculate the best possible terms applicable to that customer- meaning the duration for the given installment loan should be offered as close as possible to the initially requested one.

In case if after approving an application is not sufficient for purchasing the desired item with any possible duration, a system should offer to the customer a down payment considering an automatically calculated factor.

Regulations​

Before establishing the online installment loan integration, several limitations from a Bank of Georgia should be considered which are following the regulations from the National Bank of Georgia

  1. An applicant for the installment loan should be a citizen of Georgia
  2. An applicant’s age should be above 18
  3. In case of a customer’s data has not been checked in the “Credit Info”, it should be examined to check a customer’s credit history. Credit history is checked by the system, however, the customer should accept the respective statement.
  4. In case if the customer does not have a pre-approved installment loan, their data will be checked in the Revenue Service upon application. Again, the checks are performed by the system, however, the customer should accept the respective statement.
  5. The minimum and maximum limits of the installment loan are from 45 GEL to 15000 GEL. Those limits are controlled by the online installment loan platform and no additional intervention from a Merchant’s side is needed.
  6. The minimum and maximum duration of the installment loan are from 3 months to 48 months. Those limits are controlled by the online installment loan platform and no additional intervention from a Merchant’s side is needed. Additional regulation information

Limitations​

A limitations part contains a rule which is set by the Bank of Georgia, in particular: it is not possible to make use of the installment loan from midnight until 5:00 AM since during this time closure of the operational day is in progress. A customer may calculate their limit of requesting a new application or have approved a new application, however, the application would not be activated and it can be used in 5 hours. One customer can request an application only once every 24 hours. Activation of the limit is not limited. Cancellation of the installment loan is possible within 14 calendar days.