Republic Bank has the lowest interest rate on household loans – BoG report

Republic Bank Ghana Plc, according to a report by the Bank of Ghana (BoG), has the lowest Annualized Percentage Rates (APRs) on a 3-year and 5-year loan facility to households.

Republic Bank Ghana, the Central Bank notes in its report perused by norvanreports, has a APR of 22.64 percent on loans taken by households for a 3-year or 5-year tenor.

The APR of 22.64 percent charged on 3-year and 5-year tenor loan facilities to households is some 9.5 and 10.36 percentage points lower than the APR of 32.14 percent and 33 percent charged on the same tenor of loan facilities by the First Atlantic Bank which is the highest in the country.

According to the BoG, the APR reflects the true cost of a loan that economic agents are confronted with when they go through an approval process to secure a loan facility.

The APR comprise the Ghana Reference Rate, bank-specific premia and other bank-specific charges.

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