Republic Bank, Bank of Africa lead with lowest lending rates
By Praisebell Rosemond Larbi
Republic Bank and Bank of Africa have emerged as the commercial banks offering the most competitive interest rates on loans to individuals, according to the Bank of Ghana’s latest Annual Percentage Rates (APR) report for the period ending June 2025.
The report, which covered all 23 universal banks in the country, revealed that Bank of Africa offered the lowest rate of 20.22 percent for a one-year loan facility.
Republic Bank followed closely, providing an interest rate of 21.43 percent for a three-year tenor.
The APR is a key measure that captures the true cost of borrowing for economic agents seeking credit facilities.
It goes beyond the advertised nominal rates, incorporating the Ghana Reference Rate, bank-specific risk premiums and additional charges imposed by each institution.
This comprehensive figure helps borrowers understand the total financial commitment involved in securing a loan.
In a statement accompanying the report, the Bank of Ghana clarified that the figures presented are indicative and may differ from the actual APR a customer receives.
“A typical customer of a bank may be faced with an actual APR different from these indicative APRs, depending on the bank’s assessment of the borrower’s specific circumstance,” it noted.
The APR publication forms part of the central bank’s transparency drive aimed at empowering consumers with accurate information to make informed borrowing decisions.
By publishing comparative interest rate data, the Bank of Ghana seeks to encourage competition among banks, ultimately driving down lending rates in the market.
Financial analysts have observed that such data releases can influence consumer behaviour, pushing borrowers towards institutions offering better credit terms while prompting other banks to review their rates to remain competitive.
With the high cost of credit remaining a major concern for individuals and businesses alike, the disclosure of competitive loan rates is expected to provide some relief to potential borrowers.
