Interest on individual loans falls from 50% peak to 20–40% range
By Praisebell Rosemond Larbi
Interest rates on personal loans in Ghana have dropped significantly, falling from peaks of around 50% earlier this year to between 20% and 40%, offering much-needed relief to households, small and medium-sized enterprises (SMEs), and corporates.
According to the Bank of Ghana’s June 2025 Annualised Percentage Rates (APRs), borrowers who previously faced rates exceeding 50% for one-, three-, and five-year tenors are now paying between 20% and 42%.
The decline reflects a broader easing of credit conditions in the banking sector, spurred by improving macroeconomic stability and monetary policy adjustments.
For household loans with a one-year tenor, Bank of Africa offered the most competitive rate at 20.22%, followed by Guaranty Trust Bank Ghana at 23.72%, First Atlantic Bank at 24.21%, Republic Bank Ghana at 24.99%, and GCB Bank at 26.70%.
At the other end of the spectrum, Prudential Bank Ghana recorded the highest one-year household loan rate at 42.24%.
Financial analysts note that the rate decline is likely to ease repayment pressures, improve consumer purchasing power, and boost business borrowing for expansion.
However, they caution that interest rates in Ghana remain relatively high compared to regional peers, underscoring the need for sustained economic reforms to further reduce borrowing costs.
