Average interest on agric loans is 33.2 percent – BoG report

Average interest rate on agricultural loans by banks has increased marginally to 33.2 percent as at the end of February this year, the Bank of Ghana’s Annual Percentage Rate and Average Interest report has shown.

The report which is to ensure transparency in the pricing and provision of banking services, stated that First Atlantic Bank which tops with interest rate on agric loans at 41.2 percent, is followed by HFC Bank, OmniBank and NIB with agric loan rates at 39.5, 38 and 37.2 percent respectively.

At the 5th, 6th, 7th and 8th positions are Bank of Africa, the Royal Bank, Sahel Sahara Bank and Energy Bank.

Their rates on agric loans are 35.6, 35.5 to 40.5, 34.5 and 34.1 percent respectively.

Also, UT Bank, Fidelity Bank, Prudential Bank Limited and UBA come in with 34, 33.9, 33.3 and 32.9 percent to occupy the 9th, 10th, 11th and 12th positions in that order.

In addition, GN Bank and GT Bank offer agric loans at 32 percent to occupy the 13th slot.

They are followed by GCB Bank, FBN Ghana, ADB and Zenith Bank with 31.8, 31.7, 30.4 and 29 percent.

Meanwhile from the bottom, the lowest interest on your agric loan is offered by Standard Chartered Bank; its rate is between 24 and 32 percent.

It is preceded by Bank of Baroda, Ecobank, Societe General, Stanbic Bank and Barclays Bank.

Their rates are 24.5 to 28.8, 26.5, 27.7,28.3 and 28.6 to 39.7 percent in that order.

Seven banks; Access Bank, CAL Bank, Capital Bank, First National Bank, Sovereign Bank, Universal Merchant Bank and Unibank do not offer agric loans.

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