Corporate Loan Agreements in Tbilisi, Georgia

Corporate Loan Agreements

In which currency may a bank credit be issued?

A bank credit of up to 200 000 GEL must be issued only in lari, unless the borrower's aggregate obligations to the same grantor exceed that amount. A currency-linked credit is not treated as issued in lari.

What notice periods apply to termination?

A fixed rate expiring before the repayment date carries a one-month notice; a consumer without a mortgage may terminate six months after taking the credit with three months' notice; after ten years the right exists in any case with six months' notice; a variable-rate loan may be terminated at any time with three months' notice.

What conditions apply to security?

On incomplete repayment the grantor may demand additional security, while any part exceeding the agreed coverage must be returned at the borrower's request.

What happens when payments are missed?

Missing at least two consecutive due dates gives the grantor the right to terminate the relationship, which takes effect after an additional two-week period without payment.

4 min·9 Jan 2026

Corporate loan agreements are defined in the Georgian Civil Code through the bank credit contract, under which the grantor gives, or undertakes to give, the borrower a fee-bearing credit in the form of a loan. The law regulates its conditions in detail — the type of interest rate, termination notice periods, security and the currency of issuance — and structuring a corporate credit correctly depends on a precise command of these rules. Below we set out the rules that matter most in practice.

Fixed and Indexed Interest Rates

By agreement of the parties, either a fixed or an indexed interest rate may be set for the creditor. A fixed rate is fixed in the contract and remains unchanged throughout the contract's operation, or may change only upon specific circumstances provided for in it. An indexed rate is linked by a defined rule to a public index, and its changes are caused by changes in that index. At the conclusion of the credit agreement, the limits of increase and decrease of the fixed rate and the minimum interval between changes must be determined. The credit grantor must inform the borrower, in an acceptable form, of the interest rate for the credit. If the annual rate is not indicated, only the statutory annual interest applies, and costs not included in its calculation are not reimbursed.

Issuance Requirements and Currency Restriction

When a bank credit is issued, the requirements laid down in another article of the Code regarding the interest rate, penalties, financial costs and the imposition of any form of financial sanction must be observed — meaning bank credit also follows the general logic of the caps set for consumer loans. The currency rule stands separately: unless Georgian legislation provides otherwise, a bank credit of up to 200 000 GEL must be issued only in Georgian lari, except where, as a result of the issuance, the borrower's aggregate obligations to the same grantor exceed 200 000 GEL. A bank credit linked to or indexed by a foreign currency in any form is not considered a credit issued in lari.