Bank of Ghana says Republic Bank, UBA and GCB Bank offer cheapest loans for household consumers for one-year period

By InstinctBusiness Nov 25, 20210

The September 2021 Annual Percentage Rates (APR) by the Bank of Ghana has revealed that the Republic Bank, UBA and GCB Bank offered the cheapest loans for household consumers for a period of one year.

Whilst GCB offered an indicative rate of 22.50% to household consumers for a tenor of one year, Republic Bank and UBA charged rates of 22.64% and 22.66% respectively.

On the other hand, Bank of Africa, Stanbic and CalBank PLC offered the highest cost of credit of 29.84%, 29.97% and 30.27% respectively.

For tenors of up to five years, Republic Bank, UBA and Zenith Bank provided the lowest lending rates for household consumers. They charged rates of 22.64%, 22.66% and 22.76% respectively.

Conversely, CalBank, Bank of Africa and First Atlantic Bank offered the expensive rates of 29.06%, 29.84% and 33.0% respectively.

In terms of loans to Small and Medium Scale Enterprises, First National Bank, UBA and UMB offered the least lending rates of 19.52%, 19.96% and 21.80% respectively for one year tenor.

Those offering the expensive rates are First Atlantic Bank, Societe Generale and CalBank. They charged rates of 28.95%, 29.50% and 30.38% respectively.

For facilities that travel for five years, UBA, NIB and Zenith Bank offered the lowest rates of 19.96%, 22.44% and 22.60% respectively.

However, Bank of Africa (28.47%) and Societe Generale (29.50%) charged the most expensive rates for the five year tenor.

Regarding loans to corporate institutions with a tenor of one year, Societe Generale, Stanbic and First National Bank offered the cheapest loans. They charged 15.60%, 16.48% and 18.71% respectively.

On the other hand, Consolidated Bank Ghana (26.22%) and CalBank PLC (26.33%) charged the highest rates.

With respect to the five years tenor, Ecobank Ghana (17.67%), Societe Generale (20.10%) and Agricultural Development Bank (20.25%) offered the lowest rates of credit to corporate organizations. The Bank of Ghana said 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.