Interest on car loans hits 35%



The average interest on vehicle loans offered by commercial banks has reached 35 percent as at the end of February this year; the latest Annual Percentage Rate (APR) report by the Bank of Ghana has shown.

This represents 2 percent increase compared to the 34.3% recorded as at the end of January 2017.

The Annual Percentage Rate (APR) report also mentioned First Atlantic Bank as the bank with the highest interest on vehicle loans as at end of February this year.

Its rate on vehicle loans stood at 43.6 percent.

According to the report, Bank of Baroda however offered the lowest interest rate on auto loans for the period.

You will be required to pay between 24.5 and 28.8 percent for a vehicle loan from the Bank.

The Bank of Ghana’s Annual Percentage Rate and Average Interest report seeks to promote transparency in the pricing and provision of banking services.

According to the report, First Atlantic Bank is immediately followed by GCB Bank, Unibank and Omnibank with 40.3, 39.8 and 36.9 percent respectively.

The fifth, sixth and seventh highest interests on vehicle loans are offered by HFC Bank, Bank of Africa and the Royal Bank with interest rate on auto loans at 36.7, 35.6 and 35.5 to 40.5 percent.

Also, CAL Bank, Barclays Bank and Sahel Sahara Bank come in with 35.3, 35.1 to 39.1 and 34.5 percent to occupy the eighth, ninth and tenth positions respectively.

Following at the eleventh, twelfth and thirteenth positions are Ecobank, UT Bank and Prudential Bank Limited with interest rate on vehicle loans at 35.3, 34 and 33.6 percent in that order.

The least interest on your vehicle loans according to the Bank of Ghana is between 24.5 and 28.8 percent; offered by Bank of Baroda.

It is immediately followed by Stanbic Bank and Zenith Bank with 28.3 and 29.0 percent respectively.

Also, GN Bank, FBN-Ghana and UBA come in with the fourth, fifth and sixth cheapest interest on auto loans.

Their interest rates are 32, 32.8 and 33.1 percent respectively.

Meanwhile twelve banks do not offer vehicle loans.

They are; Access Bank, ADB, Energy Bank, Capital Bank, Fidelity Bank, First National Bank and GT Bank.

The others are NIB, Sovereign Bank, Standard Chartered Bank, Societe General and Universal Merchant Bank.


By Citi FM