The latest Annual Percentage Rates (APR) and Average Interest (AI) report by the Bank of Ghana have shown that Unibank still leads as the bank with the most expensive rate on vehicle loans.
For three consecutive times, Unibank’s rate on your car loan has hit 45.5 percent from the 40.8 to 45.8 percent as at August last year. The rate is higher than the industry average of 34.3 percent.
The report, however, stated that though Standard Chartered Bank offered the lowest vehicle loan of 18 percent, the rate could, however, go as high as 33 percent depending on other factors. Of the twenty-one banks that offer vehicle loans to customers, Unibank’s 45 percent was the highest. This is the third consecutive time the indigenous bank is leading with the most expensive rates.
It is immediately preceded by First Atlantic Bank, GCB Bank and OmniBank with auto loans of 43.6, 40.3 and 37.9 percent respectively. Sahel-Sahara Bank, HFC Bank and Bank of Africa placed 17th, 16th and 15th with 37.6, 36.7 and 36.6 percent in that order. At the 14th and 13th positions are the Royal Bank and CAL Bank with interest rates on car loans at 35.5 to 40.5 and 35.3 percent respectively.
Prudential Bank, Ecobank, ADB and Barclays Bank offer vehicle loans at a rate of 33.6, 34.1, 35.1 and 35.1 to 39.1 percent respectively.
However the cheapest rate for vehicle loans is offered by Standard Chartered Bank. Though its rate is 18 percent, it could charge as much as 33 percent depending on risk and other factors.
This is followed by Bank of Baroda with 24.5 to 28.8 percent. Zenith Bank, Stanbic Bank and GN Bank come in with 3rd, 4th and 5th lowest interests on car loans at 29, 29.4 and 32 percent respectively. Other banks with vehicle loans equal or less than the industry average are UT Bank, FBN Bank and UBA with 32.2, 32.8 and 32.9 percent in that order. Meanwhile, ten banks do not offer auto loans.
They include; Access Bank, Capital Bank, Energy Bank, Fidelity Bank and First National Bank. The rest are; GT Bank, NIB, Societe General, Sovereign Bank and Universal Merchant Bank (UMB).
Source: Citi business news