Interest on individual loans drops from 50% peak to 20-40% range

Interest rates on loans in Ghana have dropped sharply, retreating from the 50% threshold seen earlier this year to between 20% and 40%.

This is providing significant relief to households, SMEs and corporates.

The latest data of the June 2025 Annualised Percentage Rates (APRs) from the Bank of Ghana shows that borrowers, who previously faced rates exceeding 50% for one, three, and five-year tenors, are now paying between 20% and 42%.

The decline signals broader easing in credit conditions.

One-Year Tenor

Bank of Africa offered the most competitive household loan rate at 20.22%, followed by Guaranty Trust Bank Ghana (23.72%), First Atlantic Bank (24.21%), Republic Bank Ghana (24.99%), and GCB Bank (26.70%).

The highest rate under this tenor came from Prudential Bank Ghana, at 42.24%.

Three-Year Tenor

Republic Bank Ghana again led with the lowest rate at 21.43%, ahead of Guaranty Trust Bank (21.94%) and Standard Chartered Bank (22.75%).

CalBank recorded the highest rate at 39.63%.

Five-Year Tenor

Republic Bank offered 20.70%, with Guaranty Trust Bank (20.97%) and Société Générale Ghana (21.14%) following closely.

Standard Chartered Bank and Fidelity Bank rounded out the top five with 21.76% and 22.22%, respectively.

The APR, which captures the true cost of borrowing, reflects not only the Ghana Reference Rate but also bank-specific risk premiums and charges.

The easing rates could stimulate private sector investment and consumer spending, though the pace of bank rate adjustments will determine how quickly borrowers feel the full impact.

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