The average lending rate of 28.6% for secured loans by banks in Quarter four (Q4) 2024 was the lowest across all the lending institutions, the Bank of Ghana has revealed.

This is compared with 28.8% in Q4 2023.

This was followed by the Finance and Leasing companies with an average lending rate of 33.1% in Q4 2024, a decrease of 5.7 percentage points from the 27.4% recorded in Q4 2023.

The Rural and Community Banks recorded an average lending rate of 33.5% in Q4 2024, marginally down from the 34.4% recorded in Q4 2023, whilst that of Micro Credit Companies increased marginally to 49.5% from 47.7% during the same review period in 2023.

Similarly, the average lending rate on secured loans granted by Savings and Loans Companies decreased to 43.0% in Q4 2024 from the 44.1% recorded in Q4 2023.

That of Microfinance Institutions declined to 46.5% in Q4 2024 from 51.1% recorded in Q4 2023.

Finance Houses recorded the highest average lending rate of 59.4% in Q4 2024, a marginal decrease from the 60.3% recorded in the same quarter of 2023.

Sectoral Distribution of Secured Loans

The Commerce and Finance sector was the highest recipient of the total value of secured loans in Q4 2024 with a share of 44.1%, indicating a marginal increase of 0.8 percent from the share of 43.3% recorded in the same quarter of 2023.

This was followed by the Construction sector with 19.2% and the Services sector with 15.9%.

The Manufacturing sector accounted for 4.8% of the total value of secured loans, while the Information & Communications and Mining & Quarrying sectors received 3.9% and 2.9% shares respectively.

The sectoral distribution of the remaining sectors were as follows: Agriculture, Forestry and Fishing sector (2.2%); Electricity, Gas and Water sector (1.2%); Cottage Industries sector (0.2%), Transport and Haulage sector (0.9%) and Others (4.8%).