Small and medium-sized enterprises (SMEs) in Ghana faced highly divergent borrowing costs in June 2025, with one-year annualised percentage rates (APRs) ranging from just over 17 percent to above 45 percent, according to the Bank of Ghana’s latest loan pricing report.
Absa Bank Ghana Limited offered the lowest indicative APR to SMEs at 17.03 per cent for one-year loans, reflecting a significantly reduced spread of -10.52 per cent on the Ghana Reference Rate (23.80 per cent) and relatively modest fees. Universal Merchant Bank (25.99 per cent) and CalBank (27.64 per cent) followed as the next most affordable options.
On the higher-cost end, Consolidated Bank Ghana Limited recorded the steepest APR for the period at 45.13 per cent, driven by a lending rate of 35.46 per cent and additional facility and insurance fees.
Fidelity Bank (44.54 per cent) and Agricultural Development Bank Limited (39.26 per cent) also ranked among the costliest lenders to SMEs for short-term borrowing.
For three-year SME loans, United Bank for Africa offered the lowest APR at 33.24 percent, marginally ahead of Fidelity Bank (34.44 percent) and Republic Bank (28.63 percent). The data shows that fewer banks are active in the longer-term SME loan market, with several institutions reporting no such facilities granted in June.
The APR measure, as published by the Bank of Ghana, captures the comprehensive cost of borrowing, including the Ghana Reference Rate, bank-specific risk premiums, and mandatory charges such as processing, commitment, arrangement, insurance, and facility fees.
While the indicative APRs provide a comparative view of lending conditions across banks, the central bank cautions that actual rates may vary based on a borrower’s risk profile and the specific terms of the loan agreement.
