Ecobank is the most favourable bank for businesses to borrow from. That is according to the latest Annual Percentage Rates released by the Bank of Ghana. The APR shows how much interest borrowers actually pay on the loans they take from banks and includes some of the transaction charges that are usually not advertised along with the more popular base rates. The APR which considered the charges and base rates applicable to loans as of the end of August indicates that Ecobank gave facilities to businesses in agriculture, manufacturing and construction at an average interest rate of less than 25 percent. Businesses doing commerce however got loans at average interest rates of 26.8 percent. The United Bank for Africa was found to offer the most favourable interest rates to non-business establishments. Individuals looking for loans to buy vehicles paid an interest rate of 26.63 and 26.82 for houses. The APR also shows what banks pay on monies lodged with them by depositors. Stanbic Bank was found to offer the highest interest on deposits at 15.17 percent. The APRs are published regularly by the Bank of Ghana because it says it wants borrowers to be informed of the actual interest rates charged by the banks on their loans and which are usually higher than their advertised base rates. It also wants to use the publication of APRs to press the commercial banks to reduce their interests charged on loans. The last APR released by the Central Bank in June was questioned after UBA’s APR was found to be unusually lower than its base rate. Whilst it had a base or minimum lending rate of 27 percent, its APR which is inclusive of loan processing fees and all other costs rather reduced the cost of borrowing to 25.27 percent for households. Source: Joy Business/Ghana