Absa, Bank of Africa offer lowest interest rates for household loans
Households seeking credit from commercial banks in Ghana by the end of September 2024 found the lowest interest rates at Bank of Africa and Absa Bank, according to the latest Annualised Percentage Rates (APR) report published by the Bank of Ghana.
For individuals and households looking to take out loans with a one-year repayment term, Bank of Africa provided the most favourable rates.
While the bank advertised an interest rate of 29.31%, Bank of Ghana data revealed that actual rates offered by the bank dropped as low as 16%.
When all additional charges such as commitment, processing, insurance, and facility fees were factored in, the bank's average rate stood at 24.18%.
For long-term loans over five years, Absa Bank emerged as the best option, with an average interest rate of 24.81%.
This rate included similar charges for commitment, processing, insurance, and facility fees.
Despite advertising a rate of 29.31%, Absa Bank’s actual charge was 28.72%, making it a competitive option for those seeking longer-term credit.
The APR reflects the true cost of borrowing, including all fees that borrowers may not initially be aware of.
The Bank of Ghana has been regularly publishing these rates, arguing that greater transparency in the lending market will help reduce the cost of credit in the country.
Trending Business
5th cohort graduation of Kayayei empowerment programme: 620 women successfully complete
13:38ADB board chairman resigns over allegations of extortion
00:47Five-day workshop on textile waste management ends in Accra
11:54BoG directs ADB chair to resign over allegations of misconduct
09:07Newmont, MKS PAMP partner to launch Mine-to-Market Traceable Gold Bar
10:52Customer Service Week: Citizens, organisations are customer service agents of the country – Yvonne McCarthy
23:48Lufthansa hit with $4m fine for discriminating against Jewish passengers
10:43C/R: Mankessim waste treatment plant set to generate $750,000 in carbon credits
13:50Egypt approves AngloGold’s $2.5bn Centamin takeover
10:35Customer Service Week: Celebrate employees as first customers, unsung heroes – Expert to organisations
23:51