Stanchart, Baroda have best loan rates

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Standard Chartered Bank and Bank of Baroda ended the year, 2017 being the best banks with the cheapest loan rates of 22.0 percent for both household and enterprises in all categories, according to the Bank of Ghana (BoG) latest Annual Percentage Rates (APR) and Average Interest (AI) rates.

This means customers of these two banks will pay a monthly rate of 1.83 percent on the loans borrowed. The two banks for the 11th month running in 2017 continued to offer the least competitive lending rates to customers in all the sectors.
Stanbic Bank followed suit, charging an interest rate of 24.7 percent for all enterprises. GCB, GN and Ecobank Ghana also offered interest rates of about 26 percent for all enterprises.

A careful study of the data indicates that interest rates on loans in November 2017 were almost the same as that of December 2017. 

For household, beside Stanchart and Bank of Baroda, Stanbic Bank offered a rate of 24.7 percent on all loans.

Sovereign, NIB, uniBank and The Royal Bank offered the most expensive loan rates for enterprises in commerce, construction and manufacturing respectively. They charged between 36.3 and 39.0 percent respectively in these sectors. They also offered rates of more than 34.0 percent on household consumer loans.

With regard to deposits, Bank of Africa offered the best rate of 16.1 percent followed by Omni bank with a rate of 14.9 percent.
On the other hand, Stanchart and ADB paid the least deposit rates of 5.4 and 6.2 percent respectively to clients.
According to the Bank of Ghana, the average deposit rate as at December 31, 2017 was 10.4 per cent, representing a marginal increase of 0.2 per cent, compared with end-November figure of 10.2 percent.
Computed on a year-to-date basis, the end-December figure represents a decrease of 1.5 per cent in 2017. At the start of the year (end-January 2017), the average deposit rate was 11.9 per cent.
The APR is the true interest rate banks and non-bank financial institutions charge the public on loans and advances. It reflects the true cost of borrowing and includes charges and commissions levied by banks.
In all, the list covers 31 banks.

By Augustine Amoah

ABOUT: Nana Kwesi Coomson

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A Freelance Journalist, Entrepreneur and Philanthropist. Editor-in-Chief of www.233times.com. A contributory writer for Ghanaian Chronicle Newspaper. An alumnus of Adisadel College where he read General Arts. He holds first degree in Bachelor of Arts from the University of Ghana; Political Science (major) and History (minor). He has also pursued MSc Corporate Social Responsibility (CSR) and Energy with Public Relations (PR) at the Robert Gordon University in the United Kingdom. His mentors are Rupert Murdoch, Warren Buffet, Sam Jonah, Kwaku Sakyi Addo and Piers Morgan

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