Commercial banks seem to have stepped up their efforts to appeal to borrowers as the most attractive lenders.
So much so, that none of the 26 banks emerged as the overall most attractive lender in the latest Annual Percentage Rates released by the Bank of Ghana.
The APRs, released regularly by the Central Bank can be likened to a beauty contest of the actual interest rates banks charge on loans, including some of the hidden charges that would not be so obvious to a borrower.
Joy Business News Editor Israel Laryea who has been analysing the latest APRs applicable as at the end of January, says although Ecobank, offered the best rate of 24.52 to businesses into agriculture, manufacturing and construction, Standard Chartered Bank at 25 percent, gave the cheapest rate to those into commerce.
Both banks were however not so attractive with individual borrowers as they were beaten to it by others. With personal loans, individuals seeking mortgages are better off at UBA where the rate is 24.63 percent.
Vehicle loans are best contracted at Access Bank where the rate is 25.55 percent whilst Guaranty Trust Bank offered the cheapest consumer credit loan at 26 percent.
The latest APRs however reveal interest rates are still quite high despite the apparent keen competition. Average interest rates are still around 30 percent even though the banks are paying an average of just about 8 percent on deposits.
The National Investment Bank paid the highest interest on deposits at 11.97 percent, making it the best bank for both individuals and businesses to keep their monies.
The Bank of Ghana sees the regular publication of the APRs as a tool to inform borrowers about prevailing rates as a way of putting pressure on the commercial banks to reduce their interest charges.
The rates stated in the report are however not cast in stone and individuals are likely to get even better rates depending on their profile and their ability to negotiate their way with the banks. So go out there and get yourself a good deal using these rates as a guide.
Source: Joy Business/Ghana
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