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The major Bank in Ghana with the lowest interest rate for a personal loan is Cal Bank, at 15.97%. Other notable banks with low rates include Guaranty Trust Bank (16.97%) and Bank of Africa (17.19%). That’s according to the latest Annual Percentage Rates published by Ghana’s Central Bank as of the end of July this year.

But just because a lender advertises an interest rate below 17% or 18% on personal loans does not mean you are guaranteed that minimum rate. In fact, you’ll likely need an excellent credit score to qualify for a lender’s lowest rate. Personal loan providers usually display their APRs as a range. For example, Cal Bank has a minimum APR of 16.97%, but their maximum may be above 20%. The exact rate you get will depend on such things as your income, credit score, and current debts.

The Bank of Ghana Policy rate is currently  13.50%. The lending rate is often indicative of the rate at which commercial banks borrow from the central bank and mostly determines the rate at which banks lend out to customers

Banks with the lowest rates for personal loans

OmniBSIC – 17.95%

Ecobank – 18.41%

ADB- 24.89%

Societe Generale- 23.61%

ABSA- 23.59%

14 out of the 23 banks offered lending rates of more than 20%. Research shows that Ghana’s interest rates are generally high due to the high Monetary Policy Ratehigh cost and risk of doing business, high cost of borrowing funds, and high default rate. Despite recent improvements, analysts believe a lot more can be done to bring down interest rates further.

According to the world bank, Sub-Saharan Africa has a higher gap between deposit and lending rates than anywhere else. According to Bloomberg, Ghana’s Policy rate of 14.5%  in March this year was one of the highest compared to Nigeria( 11.5%), South Africa (3.5%), Kenya (7%), and Angola (15.5%), countries described as Sub-saharan Africa’s biggest economies.