The latest Annual Percentage Rates (APR) and Average Interest (AI) report by the Bank of Ghana shows that Unibank offers the highest rate on vehicle loans.
Its rate on your car loan is 39.8 percent.
The report, however, stated that Bank of Baroda’s rate between 22 and 28 percent is least among banks that offer vehicle loan.
The average interest rate for vehicle loans among commercial banks however dropped by 2.4 percent to 31.1 percent, as against the 33.9 percent recorded in May.
Of the sixteen banks that offer vehicle loans to customers, Unibank’s 39.8 percent is immediately followed by Omnibank, Bank of Africa and the Royal Bank with the second, third and fourth highest interests on vehicle loans between 38.4 and 35.5-40.5 percent.
The fifth highest is offered by HFC bank with interest on car loans at 34.4 percent.
At the sixth, seventh and eighth positions are Barclays Bank, Cal Bank, Ecobank, and Energy Bank. They offer vehicle loans of 34.2-38.5 percent, 34.1 and 33.9 percent respectively.
The ninth and tenth positions are occupied by Prudential Bank UT Bank and United Bank of Africa with interest on car loans at 33.6 and 33.1 percent.
GN Bank occupied the eleventh position with interest on car loans at 32.0 percent.
At the twelfth, thirteenth and fourteenth positions are ADB Bank, GCB Bank, and BSIC. Their interests on car loans remain 31.8, 30.7 and 29.6 percent.
Stanbic Bank and Bank of Baroda follow at the fifteenth and sixteenth positions with 26.3 and 22.0-28.0 percent interest on vehicle loans.
Twelve banks, according to the BoG report, do not offer vehicle loans.
They are; Access Bank, Capital Bank, First Atlantic Bank, FBN Bank Ghana, Fidelity Bank, First National Bank and Guaranty Trust Bank.
The rest are Heritage Bank, National Investment Bank, Sovereign Bank, Standard Chartered Bank, Societe General and Universal Merchant Bank.
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By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana