Bank of Africa, Absa offer lowest interest rates on loans to households -BoG

Bank of Africa and Absa bank offered the lowest interest rates for household seeking credit from commercial banks by the end of September 2024.

This is according to the latest Annualized Percentage Rates published by the Bank of Ghana.

The Bank of Africa was the best place to turn for individuals and householders wholooking for loans and hoping to pay back in a year.

Bank of Africa offered average rate of 24.18 percent. This was after it added all the charges including commitment, Processing, Insurance and Facility Fee.

Even though Bank of Africa advertised 29.31 percent as its interest rate, data from the Bank of Ghana showed it actually went as low as 16 percent.

For long term loans, Absa bank offered the best in period of 5 years with an average interest rate of 24.81 percent.

This included charges such as commitment, Processing, Insurance and Facility Fee.

At the published interest rate of 29.31 Percent, Absa Bank was also charging 28. 72 percent.

The Annualized Percentage Rate is the actual charges borrowers pay on loans.

It has the actual cost which is often not publicized by commercial banks.

The Bank of Ghana had argued that the regular publication of the rates would help in reducing the cost of credit in the country.