loan interest rates

If you are planning to take a loan from a bank in Ghana, it is prudent that you know the interest rate beforehand. This will well inform you and help you to plan on how to repay the loan and even how much you would want to take.

It is important to carefully consider interest rates when taking a loan.

NB: this post is not a financial advice. Contact a professional if you need investment or financial advice. Read with caution.

What is the interest rate on a loan?

In simple terms, the interest rate on a loan is the percentage of the principal amount that a lender (the bank) charges a borrower (you) for borrowing money. It is mostly calculated for a period of one year.

The interest rate on loans in Ghana differs from bank to bank. That is to say, there is no fixed interest rate for all loans in Ghana whether it’s from a bank, or microfinance institution.

NB: Bank of Ghana may have a threshold that all creditors are supposed to abide by.

 

What are the factors that influence interest rates on loans?

  • Repayment period
  • Loan amount

 

Things to note

  • Loans with higher risk generally have a higher interest rate
  • Loans with longer repayment periods have a higher interest rate
  • Loans with shorter duration for repayment have a lower interest rate.

 

The average interest rate on loans in Ghana

According to information sighted on the Bank of Ghana’s website, the average interbank daily interest rate as of 21st February 2023 is 25.87%.

 

Below is a list of banks operating in Ghana and their lending interest rate (%).

Interest Rate on Loans in Ghana

Bank Interest rate
ABSA BANK GHANA LIMITED -3% – 20%
ACCESS BANK PLC 36-37%
AGRICULTURAL DEVELOPMENT BANK 4% – 8.5%
CALBANK PLC 21.6%
BANK OF AFRICA GHANA LIMITED 33.25%
CONSOLIDATED BANK GHANA LIMITED 24%
ECOBANK GHANA LIMITED 16.74% – 29.49%
FBN BANK GHANA LIMITED  
FIDELITY BANK GHANA LIMITED 10%
FIRST ATLANTIC BANK GHANA LIMITED 15%
GCB BANK LIMITED 24% – 26%
GUARANTY TRUST BANK GHANA LIMITED 24%S
NATIONAL INVESTMENT BANK GHANA LIMITED Negotiable
PRUDENTIAL BANK LIMITED
REPUBLIC BANK LIMITED 27%
SOCIETE GENERAL BANK PLC 28% – 30%
STANBIC BANK GHANA LIMITED 19.1%
STANDARD CHARTERED BANK GHANA LIMITED 20.82%
UNITED BANK FOR AFRICA GHANA LIMITED 4.5%
UNIVERSAL MERCHANT BANK GHANA LIMITED N/A
ZENITH BANK GHANA LIMITED 18.5%
   

 

 

Conclusion

The information here was extracted from various credible sources such as the Bank of Ghana website and the websites of the respective banks. If you need further clarification or information, call their respective customer care.

Thank you.

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