Interest Rates on Auto Loans Rise To 32.9%

The average interest rate for vehicle loans among commercial banks for August increased to 32.9 percent as against the 31.1 percent recorded in July 2017, the Bank of Ghana’s latest Annual Percentage Rates (APR) and Average Interest (AI) report has revealed.

The APR and AI report shows that Unibank still offers the highest rate on vehicle loans.

Its rate stood at 41.7 percent; up from the 39.8 percent it recorded in July 2017.

Premium bank, HFC Bank and the Royal Bank follow closely at the second and third positions with interests on vehicle loans between 35.9 and 35.5 percent.

Meanwhile, the fourth and fifth highest are offered by the OmniBank and Barclays Bank with interest on car loans at 34.4 and 34.2-38.5 percent.

Following closely at the sixth, seventh and eighth positions are Cal Bank, Ecobank, Prudential Bank and Energy Bank. Their interest on car loans stands at 34.1, 33.6 and 33.3 percent.

At the ninth and tenth positions are the United Bank for Africa and GN Bank with their interest on car loans pegged at 33.1 and 32.0 percent.

The eleventh, twelfth and thirteenth positions are occupied by ADB Bank, GCB Bank and BSIC. They offer interest on car loans at 31.8, 30.7 and 30.3 percent.

At the fourteenth position is Zenith Bank with a 30.1 percentage of interest on car loans.

Stanbic Bank and Bank of Baroda occupy the fifteenth and sixteenth positions with their interest on car loans pegged at 25.5 percent and 22.0-28.0 percent.

Source: Citibusinessnews