Interest on loans to individuals: Cost of borrowing rises as high as 50% – BoG

New data published by the Bank of Ghana (BoG) has shown that no bank offers loan to households (individuals) at an interest rate below 20%.

The data, captured in the BoG’s Annualized Percentage Rates (APRs) for loans to households, SMEs, and Corporates for March 2025 showed that some banks quote interest rates for households as high as 50%.

The report also showed that all the 23 banks operating in Ghana charged interest rates between 20% and 50% across the tenure of one, three or five years.

The APR, according to the BoG reflects the true cost of a loan that economic agents are confronted with when they go through an approval process to secure a loan facility.

It comprises the Ghana Reference Rate, bank specific risk-premia and other bank-specific charges.

Breakdown of interest on household loans

At the household category with one-year tenure, the most competitive rate was offered by Guaranty Trust Bank (Ghana) Limited at 23.80%, followed by Bank of Africa Ghana Limited with an average rate of 25.93%, GCB Bank Limited with 27.20%. Societe Generale Ghana PLC offered an interest at 27.48% while Republic Bank (Ghana) PLC followed with 29.12%.

Still on the year loan tenure, Standard Chartered Bank (Ghana) Limited offered interest rates at 29.67%, Absa Bank Ghana Limited at 32.08%, Ecobank Ghana Limited at 32.93%, Zenith Bank (Ghana) Limited at 33.24%, and Access Bank Ghana Plc at 33.30%.

The data showed that Stanbic Bank Ghana Limited offered the highest average rate for one-year loans at a staggering 50.80%.

For three-year loans, Guaranty Trust Bank (Ghana) Limited again offered the lowest rate at 21.60%, followed by Societe Generale Ghana PLC at 23.17% and Fidelity Bank Ghana Limited at 24.30%. Stanbic Bank Ghana Limited once again recorded the highest rate under this tenure, at 42.57%.

For five-year household loans, Guaranty Trust Bank (Ghana) Limited offered interest on loans at 21.02%, Societe Generale Ghana PLC, at 22.27%, and Fidelity Bank Ghana Limited aat 22.96%.

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