The Best Personal Loans in Ghana

Compare the best options on the market and choose the one which best adapts to your day-to-day needs.

Further Blow: Our Guide to Personal Loans in Ghana, everything you need to know.

Standard Chartered

  • Maximum amount GHS350,000
  • Interest rates of 11.49% p.a
  •  Flexible payment period of 60 months
  • Loan protection insurance
  • Smart scheme loans
  • Smart credit
  • 24/7 access to your account
  •  Friendly terms

Absa Bank

  •  Maximum loan amount of GHS350,000
  • Long repayment period of up to 72 months
  • Fixed interest rates of between 3%-20%
  • Loan insurance cover
  •  No collateral/security needed
  • Flexible repayment options
  • Quick approval

Stanbic Bank

  •  Loan amounts of up to GHS300,000
  • Offers a loan tenure of up to 72 months
  • Competitive interest rates
  • Credit life insurance against disability and death
  • Top-up option available
  • Fast and simple application process
  • Fast payout
  • Loan repayments not more than 50% of monthly income

Personal Loans in Ghana, all you Need to Know:

Have a look at the personal loans available to you as a Ghanaian citizen within a very short time. This review process is free. We at FUNDGECKO strive to provide you with credible information on matters of loans as well as explain the different loans available to you to aid in your financial decisions.

The current market for personal loans

We aim at keeping you updated on the current news on financing and borrowing. Below is important and detailed information on the trending credit news for this month.

  •  Interest rate decisions in Ghana are made by the Bank of Ghana’s Monetary Policy Committee. In October, the Bank of Ghana raised the Monetary Policy Rate (Interest rate) to 24.5%, above the forecasts of 23% hence the borrowing costs increased. This was to contain the strong inflation rates and support the cedi which declined by 37.5% against the dollar.
  • Ghana’s annual inflation rate rose to 40.4% in October, from 37.2% in September. This is the highest rate that has been reported since July 2001. An increase in inflation causes a decrease in interest rates.

How to compare personal loan offers

There are over twenty commercial banks in Ghana recognized by the Bank of Ghana. This is a growth that has been achieved in the last three decades. This means that the creditor has several options to choose from.

Apply for a personal loan, several factors have to be considered to find the best loan offer. These factors include the maximum amount you can borrow, the interest rates, the repayment period, and the availability of credit insurance.

By looking at these factors and comparing the available options with our needs, we can come up with one loan that meets our needs and whose terms are favorable.

How to use FUNDGECKO to get personal loans 

At FUNDGECKO, we aim to provide you with credible, reliable, and current information on the different financial products available to you as a consumer. We explain to you the terms and conditions and the properties attached to these financial products. Below are the easy steps you need to follow:

  1.  Compare the various financial products that you may be interested in at no cost at all.
  2. Carefully read the terms and conditions of the contract and the fine print.
  3. In case of any doubts, clear them by using the FUNDGECKO forum. By clicking ‘Contract’, you will be automatically redirected to the bank’s website where our experts and other users will help you throughout your application process. This way, you will end up having a seamless application process and clear your worries while at it.
  4. To help other users, we give you a comment section where you can write a review about your experience working with us.

Why do you look for personal loans?

Personal loans can be taken for a wide range of reasons. If you are fixed and need some extra cash, a personal loan may come in handy for you. You may take a loan for an emergency, purchase a home, fund your children’s studies, or purchase a business.

This list will help you find the best offers according to your specific need:

  • Consolidate debts
  • Buy a car
  • Improve your credit score
  • Finance your medical expenses
  • Pay for your school fees
  • Finance a funeral
  • Purchase household equipment
  • Purchase a property
  • Finance a business venture

Note: Different loans have different terms and conditions depending on the need. Student loans have better repayment periods and interest rates compared to other types of loans. It is essential to know the purpose of your loan to settle for the best alternative.

How to apply for a personal loan

Different banks give consumers different modes of applying for loans. Whatever option you choose to go with, the steps involved will be the same. Below are the main steps you will follow when applying for a personal loan in Ghana.

1.  By this time, you have a few banks that you have your eyes on. Among them, make inquiries about their loan conditions. Analyze the conditions given and choose the option that best fits your needs. Working with up to three banks is ideal.

2.  Access the application form and duly fill it with the required data. Also provide your desired conditions in terms of the purpose, amount, and period. Send the application form back to the lender through your preferred mode.

3.  Wait for conditional approval from the bank. This will be immediate if applying online but may take a few days if face to face.

4.  Avail the bank with the documents requested. You can either do this online via email or submit them physically to the bank.

5. If the request is approved, you will be served with pre-contractual details. These terms will bind you to the lender and should therefore be read and understood before the next step.

6. If you comply with the contractual terms, (interest rate, amount, repayment period), append your signature either in person or through a digital signature.

7. The money should be sent by the lender within 48 hours after the time of application.

Requirements for personal loans in Ghana

Certain aspects have to be met for you to be granted a personal loan. These requirements cut across most personal loan providers. If you meet these requirements, you are eligible to apply for a personal loan and luckily receive it. These requirements include but are not limited to:

1. Be of legal age. Lenders will require you to have a minimum age of 21 years and not exceeding the age of 59.

2. Be a citizen of Ghana. In the case of an expatriate, he should be a legal resident there.

3. Be in employment for at least six months and be confirmed in the job role you currently hold.

4. Earn a net monthly salary of GHS500.

5. Work for the public sector or an organization profiled by the individual lender.

6. Salaried lenders must have held an account with the particular lender for at least a month.

Please note that it is advisable to take a personal loan only if you are in a position to repay it. Defaulting could lead to serious legal consequences since you are in a binding contract as well as reduce your credit score. For this reason, we recommend that you dedicate up to 40% to your loan repayment.

Documentation for applying for a personal loan

Documentation helps to prove your information, both personal and financial. For a personal loan, the documents needed are only a few and can be made available to the lender online. The lender will inform you of the method that you will be required to submit the documents for example via email. The required documents are;

  • Proof of identity- national Identification Card/Driving License/Passport.
  • Proof of income- provide the last three months’ pay slips. In case the income is varied, you will be required to provide pay slips for six months.
  • Bank statement for the last 3 months.
  • Proof of address for example a utility bill that is less than three months old.
  • A passport-size photo.
  •  Positive credit bureau report.

Who grants personal loans in Ghana?

Banks have for the longest time in history been the sole credit lenders in Ghana. With time, other lenders have penetrated the credit market and are now in business and competing with banks. This gives credit consumers many options to choose from. In this section, we will provide you with information on the different types of personal loan lenders and their features.

Entities that currently grant personal loans in Ghana include:

●         Bank entities

●         Credit Financial Institutions (CFE)

●         Private Lenders

●         P2P Lending Platforms

Here is a quick review of the above options and the conditions attached to them.

Financing through banking institutions

  • Wide range of different products
  • Large amounts of money
  • Long repayment periods
  • Fair interest rates
  • Longer funds disbursed period
  • They attract high amounts of commission
  • Most products are related
  • Seniority is highly considered

Financing by Credit financial institutions

  • Can be used to finance whatever project
  •  Economical interest rates
  • The commissions involved are less
  • Quick disbursement of money
  • Most products are related
  • Very strict requirements like banks
  • Only operational through stores and dealerships

Financing from private companies

  • No security is required
  • Seniority is not a requirement
  • Application fee is less
  • Most products are related
  •  High-interest rates
  •   Long payout period
  •  Credit score is considered

Financing through P2P platforms

  • Fast application process
  •  Flexible loan terms
  • 100% online
  • Expensive charges on rates
  • Requires borrowers to have a good credit score
  • Lenders may require more than just a good credit score

FAQ: Frequently Asked Questions

What is a personal loan?

A personal loan is a type of financing whereby you borrow money from a bank or any other financial institution to meet any personal financial deficits you may be facing. The lender extends the loan to you and allows you to pay it over a specified period, usually in monthly installments and at an agreed interest rate.

A personal loan may be taken to buy a new car, pay for school fees or buy a property. Some financial institutions may require you to have security for the loan while others do not. In case of default, the lender has a right to seize your assets and use them to repay himself.

More terms on obtaining a personal loan depend on the individual lender.

Why don’t you give me personal loans?

After applying for a loan, the lender scrutinizes the applicant to determine whether he/she is creditworthy or not. The main factor that could lead to an applicant being classified as credit unworthy is being listed in any of Ghana’s credit reference bureaus such as Dun & Bradstreet Credit Bureau Ltd and XDS Data Ghana Limited. Lack of a reliable source of income and  borrowing more than their income limit can also cause a denial.

What is the INE form for a loan? 

The INE Form is a document given by the lender to the consumer if credit is offered. This document contains the terms of the loan such as the amount, interest rates, repayment terms, and monthly installments.

What is the binding offer of personal credit? 

A binding offer is a document that is given by the lender to the borrower and usually has the contractual terms that the borrower is required by the lender to abide by. The borrower is usually allowed 14 calendar days to analyze the offer and compare it with others.

Can personal loans be paid in advance?

Financial institutions allow their borrowers to repay their loans earlier than the required time. The borrower is however required to serve the lender with a notice about the same. The lender may charge you an early repayment fee based on the amount you borrowed and how much you have paid.

What if I take out a loan and then later regret it?

The Ghanaian law allows loan applicants to withdraw from an applied loan, within 14 calendar days in case they change their mind. If it exceeds this duration, it may be difficult to withdraw and if allowed to, one may be required to pay a penalty.

What happens if I don’t pay back a personal loan?

In case of a loan default, the lender charges the borrower a penalty for late repayment. The lender can also register you in the credit reference bureaus in Ghana such as Dun & Bradstreet Credit Bureau Limited. If the amount is not repaid, the lender has a right to acquire what you used as a security to the loan. If the loan is not secured, the lender can still take your assets to settle the loan amount. To avoid defaulting, the borrower can contact the lender to negotiate the repayment terms or even refinance the loan.

When to Apply for a Personal Loan

Only take a personal loan after planning for it and weighing your available options. It should be taken to finance a project that you wish to undertake that probably cannot wait for a future date. Take a loan from a lender that has the most favorable terms.  We have provided you with this information so that you can choose wisely. 

When to Apply for a Fast Loan 

When you apply for a fast loan, you are likely to be funded the same business day. Apply for this type of loan in case of an emergency that requires immediate funding. If the situation can wait for a better source of funding, then it is advisable to do so.

To be on the safe side, ensure that you only take out an amount that you can repay to avoid defaulting and ruining your credit score.

Wrapping Up

All these available options are listed here to help you get out of that financial situation that is challenging you. We hope that this works to help you solve it.

Please remember to do your due diligence before, during, and after your loan application as some lenders may be fraudulent.

About this page, our methodology

What is this page for? Our main purpose is to help you maneuver through your financial challenges. We explain to you the different types of credit available and give different options that you can compare.

Source: This information about personal loans had been sourced from The Bank of Ghana, the different credit reference bureaus in Ghana, Ghanaian laws on credits, and the different loan provider websites.

Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources.

About FUNDGEKO: We are a website that provides credit borrowers with information about personal finance in terms of loan offers available to them. Furthermore, we give you data to support your quest for a dependable credit moneylender.Note: the services we offer are free for the user, as FUNDGECKO obtains its income from advertising and its featured products.

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