Available data published by the Bank of Ghana (BOG) indicates that Absa Bank Ghana Limited (Absa Bank) offered the lowest rate for small and medium enterprises (SMEs) in February 2024. According to the BOG’s Annualised Percentage Rates (APRs) for banks’ loans to households, SMEs and Corporates, Absa Bank was the best among 23 other commercial banks in terms of giving loans to SMEs at 17.03% for both 1 year and 3 years tenor; followed by OmniBSIC Bank, Standard Chartered Bank and GCB Bank at 33.68%, 35.17% and 35.74% respectively. The rest were Ecobank at 37.18% interest rate, Zenith Bank at 38.92%, Cal Bank at 39.19% and Societe Generale at 39.70%. Agricultural Development Bank and Stanbic Bank offered the highest rates on loans to SMEs at 48.09% and 50.27% respectively.

Meanwhile, Fidelity Bank, GCB Bank, Republic Bank, and Standard Chartered Bank in terms of household loans for a 5-year tenor period had the lowest rates at 26.64%, 27.04%, 28.50%, and 29.17% respectively. GCB Bank however appeared favourable in that same category with a 27.71% APR at 1 year and 3 years tenor.

The APR, according to BOG, reflects the true cost of a loan that economic agents are confronted with when they go through an approval process to secure a loan facility. Next time you decide to take a loan for your startup, a large company or even as an individual check with the central bank which of these commercial banks offer competitive rates within reasonable periods.

Here is a full list on the Annualised Percentage Rates for Bank’s loans to households, SMEs and corporates for 1 year, 3 years and 5 years: https://www.bog.gov.gh/wp-content/uploads/2024/03/APR-For-February-2024.pdf?fbclid=IwAR3JNqwpzv90EfOBfhDG-pEWqU4aJq_buauCRiAtQOKg-osn_ftPQ_7iEI8