Average interest on car loans in Ghana hit 32%

A new report released by the Bank of Ghana (BoG) on Annual Percentage Rates (APR) and Average Interest(AI) paid on deposits by banks has reveled that the average interest rate for a car loan in Ghana is now at 32.4 percent.

The report also reveled that as at 31st May 2016 Stanchart bank offered the cheapest car loans among its peers in Ghana.

Out of the 29 banks covered in the report, which the BoG says it published to promote transparency in the pricing and provision of banking services, Stanchart came up tops as the bank with the cheapest auto loan ranging at figures ranging from 18.4 percent to 28 percent.

Bank of Baroda came in second with the bank with the cheapest car loan at 21 percent followed by SG Bank from between 21.8 percent to 29.8 percent.

The fourth, fifth and sixth position is occupied by Energy bank with 28.5 percent Zenith bank 29 percent and FBN Ghana from 29.1 percent to 31 percent.

HFC comes in at number 7 with between 29.7 percent and 30.3 percent, Stanbic bank at number 8 with 30 percent, GN Bank number 9 at 31.3-38.4 percent and UT bank at 32.2- 35.2 percent at number 10.

According to the report from the bottom banks which offer the most expensive car loans include Unibank at 40.8-45.8 percent, Royal bank 40.2 percent, Bank of Africa 36.5 percent, Barclays bank 36.1-40.1 percent and Cal bank 35.3 percent.

Meanwhile 6 banks Access bank, Capital bank, Fidelity bank, First National Bank, GT bank, NIB and Universal Merchant Bank according to the report do not offer car loans.

By:  Vivian Kai Lokko/citibusinessnews.com/Ghana

 

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