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Demand Annualized Percentage Rate before signing a loan contract - BoG to loan seekers

Dr Ernest Addison 480x430 1121212 Bank of Ghana Governor, Dr Ernest Addison

Thu, 19 May 2022 Source: www.ghanaweb.com

BoG educates Ghanaians, loan seekers

APR will help customers know how much the loan will cost them after the duration, BoG

It’s a legal requirement to provide APR to loan seekers, BoG tells banks

The Bank of Ghana (BoG) has entreated all persons who go in for loans from financial institutions to request the Annualized Percentage Rate (APR) on their loans before signing any loan contract.

According to the central bank, this will help the borrower know how much the loan will cost after the duration.

Also, it is a legal requirement for financial institutions to provide APR to loan seekers.

In a tweet sighted by GhanaWeb, the Bank of Ghana said, “Always demand the Annualized Percentage Rate (APR) on your loan from your financial institution prior to acceptance of the loan facility."

“It will help you know how much the loan will cost you after the duration of the loan it is a legal requirement for your financial institution to provide you this information before you sign your loan contract,” it added.

The Annualized Percentage Rate is the yearly interest generated by a sum that’s charged to borrowers or paid to investors.

Read BoG's tweet below;

Source: www.ghanaweb.com
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