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Average lending rates of commercial banks hit 31.40% per annum as of the end of October 2022, the Bank of Ghana\u2019s November 2022 Summary of Economic and Financial Data has revealed.<\/p>\n
This is equivalent to 2.16% interest rate on loans per month.<\/p>\n
According to the report, average cost of borrowing has been going up sharply from May 2022 (22.53%) to 31.40% in October 2022.<\/p>\n
It stood at 24.27% in June 2022 and then surged to 26.46% in July 2022. It again went up to 27.96% in August 2022 and later to 29.81% in September 2022..<\/p>\n
This is as a result of the rising inflation rate and other factors.<\/p>\n
However, the average lending rate varies among the banks and the respective sectors that they lend to.<\/p>\n
Some banks will offer loans equivalent to the Ghana Reference Rate of 27.44%, whilst others will charge rates as high as 40%.<\/p>\n
Overall, it will also depend on the risk profile of the customers.<\/p>\n
Again, some perceive lending to the agriculture and construction sectors as riskier, and therefore credit to these sectors are expensive.<\/p>\n
According to data from the Bank of Ghana, cost of loans rose marginally from the beginning of this year due to increasing inflation rate and other factors.<\/p>\n
Cost of loans in Ghana among highest in Africa<\/strong><\/p>\n Presently, cost of credit in Ghana is one of the highest in Sub Saharan Africa.<\/p>\n Businesses and households will therefore have to pay more on loans to finance their operations and personnel expenses.\u00a0 This will consequently increase the cost of doing business and living.<\/p>\n DISCLAIMER: <\/strong>The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Average lending rates of commercial banks hit 31.40% per annum as of the end of October 2022, the Bank of Ghana\u2019s November 2022 Summary of Economic and Financial Data has revealed. This is equivalent to 2.16% interest rate on loans per month. According to the report, average cost of borrowing has been going up sharply […]<\/p>\n","protected":false},"author":1,"featured_media":1220361,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[11359,1084,312,5465,14879,179],"class_list":["post-1258774","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-average","tag-bog","tag-hits","tag-lending","tag-october","tag-rate"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1258774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=1258774"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1258774\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=1258774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=1258774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=1258774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}