Unibank offers most expensive interest on car loans – BoG report

Business News of Tuesday, 21 February 2017

Source: citifmonline.com

2017-02-21

Cars 34.34The rate is higher than the industry average of 34.3 percent

The latest Annual Percentage Rates (APR) and Average Interest (AI) report by the Bank of Ghana has shown that Unibank still leads as the bank with the most expensive rate on vehicle loans.

For three consecutive times, Unibank’s rate on your car loan has hit 45.5 percent from the 40.8 to 45.8 percent as at August last year.

The rate is higher than the industry average of 34.3 percent.

The report however stated that though Standard Chartered Bank offered the lowest vehicle loan of 18 percent, the rate could however go as high as 33 percent depending on other factors.

Of the twenty-one banks that offer vehicle loans to customers, Unibank’s 45 percent was the highest. This is the third consecutive time the indigenous bank is leading with the most expensive rates. It is immediately preceded by First Atlantic Bank, GCB Bank and OmniBank with auto loans of 43.6, 40.3 and 37.9 percent respectively.

Sahel Sahara Bank, HFC Bank and Bank of Africa placed 17th, 16th and 15th with 37.6, 36.7 and 36.6 percent in that order.

At the 14th and 13th positions are the Royal Bank and CAL Bank with interest rates on car loans at 35.5 to 40.5 and 35.3 percent respectively.

Prudential Bank, Ecobank, ADB and Barclays Bank offer vehicle loans at a rate of 33.6, 34.1, 35.1 and 35.1 to 39.1 percent respectively.

However the cheapest rate for vehicle loans is offered by Standard Chartered Bank.

Though its rate is 18 percent, it could charge as much as 33 percent depending on risk and other factors.

This is followed by Bank of Baroda with 24.5 to 28.8 percent.

Zenith Bank, Stanbic Bank and GN Bank come in with 3rd, 4th and 5th lowest interests on car loans at 29, 29.4 and 32 percent respectively.

Other banks with vehicle loans equal or less than the industry average are UT Bank, FBN Bank and UBA with 32.2, 32.8 and 32.9 percent in that order.

Meanwhile ten banks do not offer auto loans.

They include; Access Bank, Capital Bank, Energy Bank, Fidelity Bank and First National Bank.

The rest are; GT Bank, NIB, Societe General, Sovereign Bank and Universal Merchant Bank (UMB).

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