Business News of Fri, 21 Apr 20174
Average interest on car loans drops to 34.2% in March 2017
The industry average for vehicle loans has however dropped from 35 percent in February to 34.2 percent in March 2017, the latest Annual Percentage Rates and Average Interest report by the Bank of Ghana has shown.
The report however shows that GCB Bank offers the highest rate on vehicle loans at 40.3%. Bank of Baroda however offers the lowest vehicle loan of 22 percent and 28 percent.
Of the seventeen banks that offer vehicle loans to customers, GCB Bank’s 40.3 percent is immediately preceded by Unibank, Omnibank and HFC Bank with auto loans of 39.836.9 and 36.7 percent respectively. Bank of Africa, the Royal Bank and Cal Bank placed 5th, 6th and 7th with 35.6, 35.5 to 40.5 and 35.3 percent in that order.
At the 8th and 9th positions are Barclays Bank and Ecobank with interest rates on car loans at 35.1 to 39.1 and 34.1 percent.
Others are Prudential Bank with 33.6 percent, UBA and UT Bank with 33.1, Sahel Sahara with 33.0 and FBN Ghana with 32.8 percent.
However the cheapest rate for vehicle loans is offered by Bank of Baroda. Its rate is pegged at between 22 to 28 percent.
This is followed by Stanbic Bank with 28.3 percent. Zenith Bank come in with 3rd with interest on car loans at 29 percent and GN Bank 4th lowest with 32 percent.
Meanwhile Access Bank, ADB, Energy Bank, First Atlantic Bank, Capital Bank, Fidelity Bank, First National Bank, GT Bank, NIB, Societe General, Sovereign Bank, Standard Chartered Bank SG Bank and UMB do not offer vehicle loans.