“The rates represent the average of all interest rates applicable to all loan products for borrowers, as reported by the respective universal banks to the Bank of Ghana,” the BoG document notes.
The BoG document revealed that CalBank’s lending rate at the end of July 2021 was 15.97%.
Guaranty Trust Bank Ghana Limited came in second with a lending rate of 16.97%.
Bank of Africa Ghana Limited, Access bank Ghana Plc and OmniBSIC Bank Ghana Limited have their lending rates at 17.19%, 17.77% and 17.95 respectively.
Agricultural Development Bank Limited is the bank with the highest lending rate at 24.89%.
Check out the full list of banks in Ghana and their interest rates below;
According to the BoG, the publication is for the public’s attention and also promotes transparency in the pricing of loans from universal banks.
The lender rate or interest rate is the amount charged by lenders during a certain period as a percentage of the amount loaned or deposited. The total interest on the amount or principal is determined by the length of time the amount is deposited or loaned. Most loans use simple interest.
Interest rates apply to most lending or borrowing transactions. Individuals borrow money to buy homes, finance projects, start or finance businesses, or pay for their education.
Businesses take out loans to finance capital projects and expand their businesses by purchasing fixed and long-term assets such as land, buildings and machinery. The borrowed money is repaid either in a lump sum at a predetermined date or in periodic installments.
An interest rate may also apply to the amount earned in a bank or credit union from a savings account.