Across the lending institutions, Leasing Companies recorded the lowest average lending rate of 13.8% for secured loans in the third quarter of 2024, the Bank of Ghana has revealed in its 2024 Quarterly Collateral Registry Brief

This is compared with the 28.1% recorded during the same period last year.

Banks followed with an average lending rate of 31.1% for secured loans in quarter 3, 2024, an increase by 4.5 percentage points from 26.6% recorded in the 3rd quarter of 2023.

Finance and Leasing Companies recorded an average lending rate of 32.2% in Q3 2024, up from the 30.5% recorded in Q3 2023, whilst that of RCBs declined marginally to 34.3% in Q3 2024 from 35.3% in Q3 2023.

Similarly, the average lending rate on secured loans granted by Savings and Loans Companies decreased to 42.3% in Q3 2024 from the 44.1% recorded in Q3 2023.

That of Microfinance Institutions declined to 47.5% in Q3 2024 from 49.9% recorded in Q3 2023.

Finance Houses recorded the highest average lending rate of 58.8% in Q3 2024, a marginal increase from the 58.6% recorded in the same quarter of 2023.

Total value of secured loans hits GH¢5.6bn in Q3

Meanwhile, the total value of secured loans granted by banks and Specialised Deposit-Taking Institutions (SDIs) in the third quarter of 2024 was GH¢5.6 billion.

This was relative to the GH¢5.5 billion recorded in quarter 3 of 2023, indicating an increase of 2.8% on year-on-year terms.

According to the Quarter 3 Collateral Registry Brief, banks accounted for GH¢3.5 billion of the total value of secured loans in quarter 3, 2024, depicting a decrease of 18.7% from GH¢4.3 billion in quarter 3, 2023. On the other hand, SDIs recorded a total value of GH¢2.1 billion secured loans in quarter 3 2024, an increase of 75.0% from GHS 1.2 billion recorded for the same in 2023.