As of the end of September 2024, Bank of Africa and Absa Bank have emerged as the leading lenders for households seeking credit from commercial banks, according to the latest Annualized Percentage Rates (APR) published by the Bank of Ghana.
Bank of Africa stands out as the most favorable option for individuals looking for short-term loans with a one-year repayment period, offering an average APR of 24.18%. This rate includes various charges such as commitment, processing, insurance, and facility fees. While Bank of Africa advertised an interest rate of 29.31%, data reveals that its effective rate could be as low as 16%.
For long-term financing, Absa Bank has the most competitive offering over a five-year period, with an average APR of 24.81%, also factoring in similar additional charges. Although Absa’s advertised rate is 29.31%, the effective rate reported is slightly lower at 28.72%.
The Annualized Percentage Rate reflects the actual costs borrowers incur on loans, providing transparency regarding the total charges that are often not disclosed by banks. The Bank of Ghana emphasizes that regular publication of these rates aims to assist consumers in making informed financial decisions.
Source: DEW360.NET
JOIN OUR WHATSAPP CHANNEL:
