BoG report: Check out banks with lowest interest rates on loans

According to data from the BoG, Bank of Africa, Stanbic and CalBank offer the highest indicative rates on loans for household consumers for one year

The Bank of Ghana’s (BoG) September 2021 Annual Percentage Rates (APR) report has revealed that Bank of Africa, Stanbic and CalBank PLC offered the highest indicative rates on loans for household consumers for one year.

Bank of Africa offered an indicative rate of 29.84% to household consumers for a tenor of one year, Stanbic and CalBank PLC charge rates of 29.97% and 30.27% respectively.

Meanwhile, GCB bank limited, Republic Bank and United Bank for Africa (UBA) offered the cheapest cost of credit of 22.50%, 22.64% and 22.66% respectively.

For tenor of facility up to five years, Republic Bank (22.64%), UBA (22.66%) and Zenith Bank (22.68%) afford the lowest loan rates to household consumers.

On the other hand, CalBank, Bank of Africa and First Atlantic Bank offered the costliest rates of 29.06%, 29.84% and 33.00% respectively.

Cost of SME loans

The report further indicated that for a one-year tenor, First National Bank (19.52%), UBA (19.96%) and UMB (21.80%) offered the lowest lending rates for Small and Medium Scale Enterprises.

Whiles, Absa bank, First Atlantic Bank and Societe General charged the most expensive rates of 28.79%, 28.95% and 29.50% respectively for one year.

Loans to corporates

In terms of the cost of banks’ loans to corporate institutions, Societe General (15.60%), Stanbic Bank (16.48%) and First National Bank (18.71%) are said to be the cheapest among all the banks for a tenor of one year.

However, Prudential Bank, Consolidated Bank and CalBank offer the highest lending rates of (25.87%), (26.22%) and (26.33%) respectively.

For a five-year loan tenor facility to corporate bodies, Ecobank (17.67%), Societe General (20.10%) and ADB (20.25%) are the cheapest rates offered by these banks.

Meanwhile, the most expensive lending rates for the same tenor goes to Prudential Bank and National Investment Bank with (25.87%) and (24.76%) respectively. 

Annualised Percentage Rates (APRs)

According to the Bank of Ghana, the APR reflects the true cost of a loan that economic agents are confronted with when they go through an approval process to secure credit.

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

Nicholas Brown

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