Monday, October 20, 2025
NewsCenta
  • Home
  • News
    • Politics
    • Local
    • Education
    • Agriculture
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Business
  • Sports
  • Tech
  • Opinion
No Result
View All Result
NewsCenta
  • Home
  • News
    • Politics
    • Local
    • Education
    • Agriculture
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Business
  • Sports
  • Tech
  • Opinion
No Result
View All Result
NewsCenta
No Result
View All Result

Borrowing cost for industry ranges from 30 to 47%

admin by admin
May 22, 2024
in Business
0
Share on FacebookShare on Twitter

In February 2024, annualized percentage rates (APRs) for bank loans remained significantly high, especially affecting the industrial sector, according to the latest report.
The report, which offers indicative rates for loans with one, three, and five-year tenors, highlighted that APRs for industries did not fall below 30%, underscoring substantial financial challenges.
For one-year tenor loans to corporates, APRs ranged from 33.68% at OmniBSIC Bank to 45.94% at the Agricultural Development Bank.
Two banks did not offer this loan during the month.
Three-year tenor loans had APRs from 33.68% at OmniBSIC Bank to 47.51% at the Agricultural Development Bank, with 10 banks abstaining from this category.
Five-year tenor loans showed rates from 30.58% at Access Bank to 47.24% at the Agricultural Development Bank, and another 10 banks did not offer this loan.
High interest rates mean that economies, businesses, and consumers will have to pay more to borrow, adjusting to new financing conditions.

27.71%-50.92% borrowing cost for households
Households faced substantial borrowing costs as well. One-year tenor loans for households had APRs starting at 27.71% from GCB Bank and reaching up to 50.92% at Stanbic Bank, with one bank not offering loans with a one-year tenor.
Three-year tenor loans saw the lowest APR at 27.21% at Bank of Africa, with the highest at 43.83%.
Two banks did not provide loans in this category. Five-year tenor loans started at 26.64% at Fidelity Bank and peaked at 44.07% at the National Investment Bank, with one bank abstaining from offering this loan.

You might also like

Ghana IMF Asiama

Ghana on track to exit IMF Programme in May 2026 – Dr Asiama

October 18, 2025
IMF Cedi

IMF applauds Ghana’s recent Cedi appreciation 

October 18, 2025

17.03%-50.27% borrowing cost for SMEs
Small and Medium Enterprises (SMEs) also experienced a wide range of rates.
One-year tenor loans for SMEs ranged from 17.03% at Absa Bank Ghana to 50.27% at Stanbic Bank Ghana, with one bank not participating.
Three-year tenor loans had APRs from 17.02% at Absa Bank Ghana to 55.27% at Fidelity Bank, with five banks not offering this loan.
For five-year tenor loans, rates ranged from 24.44% at Fidelity Bank to 48.49% at the Agricultural Development Bank, with 13 banks not offering this loan.
The report also highlighted an alarming non-performing loans (NPL) rate of 25%, indicating that a quarter of the loans granted by banks are unlikely to be fully recovered.
The APR reflects the true cost of a loan, incorporating the Ghana Reference Rate, bank-specific risk premiums, and other charges that borrowers face when securing a loan facility.
This situation calls for strategic interventions to manage and reduce lending rates, fostering a more conducive economic environment for growth and development.
The APR provides a consistent basis for presenting annual interest rate information to protect consumers from misleading advertising.
However, an APR may not reflect the actual cost of borrowing because lenders have some leeway in its calculation, excluding certain fees.

Post Views: 261
Tags: borrowingCostIndustryNewscenta
admin

admin

Related Stories

Ghana IMF Asiama

Ghana on track to exit IMF Programme in May 2026 – Dr Asiama

by NewsCenta
October 18, 2025
0

Ghana is well-positioned to exit the International Monetary Fund’s (IMF) $3 billion Extended Credit Facility (ECF) programme when it ends...

IMF Cedi

IMF applauds Ghana’s recent Cedi appreciation 

by NewsCenta
October 18, 2025
0

The International Monetary Fund (IMF) has lauded Ghana on the recent stabilisation of the Cedi, noting that the development signals...

Fintech ecosystem

Experts call for reforms to close gaps in Fintech ecosystem

by NewsCenta
October 17, 2025
0

Ghana’s fintech industry, once celebrated as one of the most dynamic in Africa, is facing a decisive test. Behind its...

Fidelity AI

Fidelity Bank’s ‘AI as CEO’ drives 200% productivity boost

by NewsCenta
October 16, 2025
0

Fidelity Bank Ghana has reaffirmed its commitment to driving responsible innovation and shaping the future of digital transformation in Africa...

Recommended

Newspapers, Headlines, Newscenta, Monday, October 20,

Monday, October 20, 2025 Newspaper Headlines

October 20, 2025
GFA Black Stars

GFA President hails MTN’s support for Black Stars

October 19, 2025
Azumah Resources

E&P pays former owners of Azumah Resources full $100m

October 19, 2025

Popular Story

  • Songs Daddy Lumba

    See the list of over 200 songs Daddy Lumba released

    744 shares
    Share 298 Tweet 186
  • The true story behind Ghana’s acceptance of deportees

    719 shares
    Share 288 Tweet 180
  • Gold-backed policies since 2021 driving economic gains — BoG

    715 shares
    Share 286 Tweet 179
  • 10 of top 11 causes of death killing more men in Ghana

    700 shares
    Share 280 Tweet 175
  • Bissue floors High Court and OSP at Supreme Court

    691 shares
    Share 276 Tweet 173
NewsCenta

Newscenta is a Ghana-based news organisation publishing in print (The Newscenta Newspaper) and on a digital media platform (newscenta.com) dedicated to delivering timely and impactful news across various sectors, including politics, business, economy, technology, and culture.

  • About Us
  • Contact Us
  • Health
  • Education
  • Mining
  • Energy
  • Telecoms
  • Agriculture
  • Opinion
  • Trade
  • Newspaper Headlines

© 2025 All Rights Reserved NewsCenta.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • News
    • Politics
    • Local
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Newspaper Headlines
  • Business
  • Agriculture
  • Education
  • Sports
  • Tech
  • Opinion

© 2025 All Rights Reserved NewsCenta.

Connect with us