List of Banks and Their Loan Interest Rates in Ghana

 

Banks and Their Loan Interest Rates in Ghana.

Access to loans has become a major pillar in supporting households, small businesses, and individuals across Ghana. From funding home renovations to providing working capital for traders, loans serve as a financial bridge during pressing times. 

But while access to credit is critical, the true cost of borrowing is measured by the interest rate a bank charges. This figure determines how much a borrower eventually repays—sometimes doubling or tripling the original loan if the rate is high.

According to the Bank of Ghana’s Annual Percentage Rate (APR) report for September 2024, lending rates among banks vary widely. Some banks charge above 40%, while others go as low as 16%. This huge gap highlights why borrowers must compare options carefully before committing to a loan.

In this article, we provide a detailed breakdown of the top 10 banks by their lending rates for household loans. The analysis moves from the highest to the lowest and explains what these figures mean for everyday borrowers in Ghana.

1. National Investment Bank Limited (NIB) – 43.61%

NIB records the highest rate in the country, standing at 43.61%. At this level, a borrower taking ₵10,000 will end up repaying over ₵14,361 after one year, excluding other charges.

Such a steep rate makes NIB one of the most expensive banks for household loans. The high cost can be linked to lending risks, especially since NIB often provides unsecured loans or serves clients in high-risk categories. For the average household, borrowing at this rate could worsen financial challenges rather than solve them.

2. United Bank for Africa (UBA) Ghana – 36.00%

UBA comes second with an interest rate of 36.00%. Though lower than NIB, it is still significantly higher than most competitors. A ₵10,000 loan here will cost a borrower about ₵13,600 in repayment after one year.

UBA’s advantage lies in its strong branch network across Ghana and its digital services. However, borrowers must weigh the convenience against the high repayment cost. This makes UBA suitable only for borrowers who prioritize accessibility over affordability.

3. First National Bank (FNB) Ghana – 35.69%

FNB Ghana is widely praised for digital banking innovations and modern customer service. Yet, its lending rate remains high at 35.69%. Borrowing ₵10,000 here will require repayment of about ₵13,569 after a year.

The relatively high figure reflects Ghana’s broader economic environment, especially inflation and currency depreciation. FNB clients may enjoy fast and easy loan processing, but they should prepare for heavy repayment burdens.

4. Guaranty Trust Bank (GTBank) Ghana – 35.00%

GTBank charges 35.00% for household loans, putting it among the top four most expensive banks. For instance, a ₵10,000 loan will amount to about ₵13,500 repayment in a year.

While GTBank is known for its reliable customer service and user-friendly platforms, the repayment obligations can be overwhelming for ordinary households. Borrowers must carefully calculate their ability to handle such costs before signing a loan agreement.

5. Agricultural Development Bank (ADB) – 34.68%

Primarily established to support Ghana’s agricultural sector, ADB still provides personal loans at 34.68%. This means a ₵10,000 loan repayment will rise to about ₵13,468 after a year.

For farmers and agribusiness owners, access to ADB loans can be vital. However, the high rate increases the risk of repayment challenges, especially in agriculture, where income may not be consistent.

6. Ecobank Ghana – 32.63%

Ecobank, one of Africa’s largest banking groups, offers household loans at 32.63%. Borrowers taking ₵10,000 will repay about ₵13,263 after one year.

Despite the relatively high cost, many customers still turn to Ecobank due to its wide coverage, strong financial backing, and variety of loan products. Still, households must be aware that staying above the 30% threshold makes repayment heavy over time.

7. Zenith Bank Ghana – 31.47%

Zenith Bank’s lending rate stands at 31.47%, slightly more affordable than the previous six. A ₵10,000 loan here equals ₵13,147 in repayment after one year.

Borrowers may consider Zenith for its stability and structured financial products. However, though lower, the rate is still high compared to other options on the market.

8. Standard Chartered Bank Ghana – 25.34%

Here, the rates drop noticeably. Standard Chartered charges 25.34%, meaning a ₵10,000 loan will rise to ₵12,534 after a year.

This makes Standard Chartered a more competitive option for individuals seeking lower repayment costs. The bank also provides premium banking services, making it attractive to salaried workers and professionals who want both quality service and affordable loan terms.

9. GCB Bank Limited – 25.00%

GCB Bank, the largest indigenous bank in Ghana, offers household loans at 25.00%. This equals ₵12,500 repayment for every ₵10,000 borrowed.

With its nationwide network, GCB provides wide access to borrowers in both urban and rural areas. Its balance between accessibility and affordability makes it one of the most reliable choices for ordinary households.

10. Bank of Africa Ghana – 16.00%

At the bottom of the list—and the most affordable—is Bank of Africa, with a rate of 16.00%. Borrowing ₵10,000 here requires repayment of ₵11,600 after one year.

This makes Bank of Africa the most cost-effective choice for household loans, potentially saving borrowers thousands of cedis in interest compared to banks at the top of the list. For families planning medium- to long-term borrowing, this bank presents the best option among the top 10.

What the Interest Rate Differences Mean

The wide gap—from 43.61% at NIB to 16.00% at Bank of Africa—shows how drastically borrowing costs can vary. Choosing the wrong bank could cost a borrower almost ₵3,000 extra in repayment per ₵10,000 borrowed.

Borrowers must keep in mind:

• Total Repayment Cost: The higher the rate, the more expensive the loan becomes.
• Loan Duration: Longer repayment periods increase the interest burden.
• Collateral & Creditworthiness: Borrowers with strong repayment histories or collateral can negotiate better terms.

Tips for Reducing Borrowing Costs

1. Compare Banks Thoroughly – Rates differ sharply; never settle for the first offer.
2. Negotiate Terms – Loyal customers or large borrowers may get discounted rates.
3. Strengthen Credit History – Good repayment behavior increases your chances of lower rates.
4. Select the Right Loan Type – Mortgages and secured loans often have lower interest than unsecured loans.
5. Borrow Only What You Need – Avoid unnecessary debt since high rates can easily overwhelm income.

Final Thoughts

The Bank of Ghana’s September 2024 APR report highlights one clear truth: while some banks provide relatively fair loan rates, others remain far too expensive for the average household. Borrowers must take time to compare, calculate repayment amounts, and plan carefully before signing a loan agreement.

For households seeking the most affordable option, Bank of Africa currently provides the best rate at 16.00%. On the other hand, banks like NIB, UBA, and FNB demand caution, as their high rates could create a financial burden over time.

Ultimately, making an informed decision is the only way to minimize borrowing costs and keep your finances under control.

📌 Source: Bank of Ghana APR Report (September 2024)