The cost of credit for individuals in Ghana remains steep, as no bank is offering household loans at interest rates below 20%.
Borrowers are facing rates as high as 50%, according to the Bank of Ghana’s latest report on Annualized Percentage Rates (APRs) for loans to households, SMEs, and Corporates for March 2025.
According to the report, whether the loan tenure was one, three, or five years, individuals were required to pay interest rates ranging from 20% and over 50%.
For one-year household loans, the most competitive rate was offered by Guaranty Trust Bank (Ghana) Limited at 23.80%. This was followed by Bank of Africa Ghana Limited with an average rate of 25.93%. GCB Bank Limited offered 27.20%, while Societe Generale Ghana PLC and Republic Bank (Ghana) PLC followed closely at 27.48% and 29.12%, respectively.
Rounding out the top 10 were Standard Chartered Bank (Ghana) Limited 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 highest average rate for one-year loans was recorded by Stanbic Bank Ghana Limited, at a significant 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, Societe Generale Ghana PLC, and Fidelity Bank Ghana Limited maintained their top three positions with rates of 21.02%, 22.27%, and 22.96%, respectively.
The Annualized Percentage Rate (APR) reflects the total cost of borrowing, combining both interest rates and additional loan-related fees. It serves as a crucial metric for borrowers, providing a comprehensive picture of the true cost of loans from financial institutions.
