Peer-to-Peer (P2P) Lending Regulations in Georgia represent the legal framework defining the rules for the functioning of alternative financial services. Georgia is one of the first in the region to begin systematic regulation of the P2P lending sector to ensure market stability and consumer protection. Direct lending allows investors to place free funds in loans and receive higher returns than bank deposits, while giving borrowers alternative access to capital. However, this process involves high risks, leading the state to establish strict regulations for platform operators. This includes obligations for registration, transparency, information security, and money laundering prevention. The Legal.ge platform provides information on experienced lawyers who will assist in interpreting complex regulations and bringing your activities into full compliance with the law.
What does the Peer-to-Peer Lending Regulations service cover?
Legal services related to Peer-to-Peer lending regulations involve complex support at all stages of the business. The service covers: platform registration and authorization with the National Bank of Georgia; legal analysis of the operational model for compliance with National Bank requirements; preparing standard loan agreement forms that meet legislation on maximum interest rates and commissions; declaring investor rights and duties; developing AML/KYC policies and procedures; ensuring compliance with personal data protection and cybersecurity regulations; representation when communicating with regulatory bodies; and setting up dispute resolution mechanisms (arbitration or court). Lawyers also help companies manage so-called "lending limits," which are important for safeguarding investor risks.
Common real-world scenarios
In practical activities, knowledge of P2P lending regulations is essential during several typical situations. The first is "Establishing a New Platform," where an investor plans to offer an innovative credit product and needs full legal support for the licensing process. The second scenario concerns "Changes in Regulations," when the National Bank imposes new requirements (e.g., regarding maximum loan terms or effective interest rates) and the company must adapt quickly. The third scenario is "Investor Protection," where legal mechanisms must be created to recover funds in case of a loan default. It is also common for an international P2P platform to want to enter the Georgian market and need a localized legal framework. Each case requires highly qualified legal support.
Georgian Legal Framework
Peer-to-Peer lending regulation in Georgia relies on the Law of Georgia on Payment Systems and Payment Services and specific regulations of the National Bank of Georgia. Special importance is given to the Civil Code of Georgia, regulating loan and guarantee agreements. Also, the Law of Georgia on Facilitating the Prevention of Money Laundering and Terrorism Financing sets strict requirements for transaction monitoring. The National Bank oversees the registry of "lending entities," where P2P platforms often fall due to the specifics of their activities. A lawyer's assistance is essential for the correct interpretation of this complex legislation to avoid business disruption or sanctions.
Step-by-step process when working with a specialist
The process begins with a detailed study of the business model and an assessment of legal risks. In the first stage, the lawyer prepares registration documentation for submission to the National Bank. In the second stage, internal regulations, including credit policy and consumer protection rules, are drafted. The third stage involves checking technical and software compliance with information security requirements. In the fourth stage, the client identification and transaction monitoring system (AML) is set up. The process ends with the official launch of the platform and ongoing legal support, including regular communication with the regulator and, if necessary, complaint management. A specialist ensures that your activity is transparent and protected.
Why choose Legal.ge?
P2P lending regulations are one of the most specific fields where experience is of decisive importance. On the Legal.ge platform, you will find lawyers and consulting firms with a successful practice in registering and managing fintech companies. Our experts will help you easily navigate complex bureaucratic processes and ensure your platform's legal integrity. Through Legal.ge, you have access to services from professionals well-acquainted with National Bank requirements and market trends. Find your legal advisor on Legal.ge and start a direct lending business in Georgia safely. Our platform offers reliability and quality assurance for your business growth.
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