Cal Bank offers lowest lending rate amongst commercial banks in Ghana The central bank’s document showed the average lending rate for all 23 universal banks in the country.
“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 noted.
The BoG document revealed that CalBank’s lending rate as of July ending 2021 was at 15.97%.
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 attention of the public and also promote transparency in the pricing of loans granted by the universal banks.
Lending rate or interest rate is the amount charged by lenders for a certain period as a percentage of the amount lent or deposited. The total interest on the amount or the principal sum is determined by the duration of time over which the amount is deposited or lent. Most loans use simple interest.
Interest rates apply to most lending or borrowing transactions. Individuals borrow money to purchase homes, fund projects, launch or fund businesses, or pay for their education.
Businesses take out loans to fund capital projects and expand their operations by purchasing fixed and long-term assets such as land, buildings, and machinery. Borrowed money is repaid either in a lump sum by a pre-determined date or in periodic installments.
Also an interest rate can also apply to the amount earned at a bank or credit union from a savings account.