Small and medium-sized enterprises (SMEs) hunting for loans with affordable costs have a number of options to consider.
The Bank of Ghana Annualised Percentage Rate report for June 2025 reveals that SMEs had plenty of options to compare offers before signing on loan facilities.
The report reveals striking differences in what commercial banks charge SMEs for the same loans. According to the report, there is a wide gap between the lowest charge and the highest charge that can make or break a business’s cash flow and affect its profitability or sustainability.
But along the 1, 3, and 5-year loan tenors, the report reveals some banks stood out. ABSA Bank, Republic Bank, and Bank of Africa offered the lowest rate, while others down the chart charged very high costs.
The report explains that the APR is the real measure of loan cost, which includes interest rates, fees, and charges into one figure. The BoG’s data shows the cheapest banks offering rates less than half those of the priciest lenders in some cases.
1-Year SME Loans: ABSA Sets the Pace
If you needed a short-term injection of capital, ABSA was the clear leader, with an APR of 17.03%, far below the market average. Universal Merchant Bank (UMB) followed at 25.99%, and CalBank came in third at 27.64%.
At the other end of the scale, SMEs borrowing from Fidelity Bank and Consolidated Bank of Ghana faced far steeper costs. Fidelity Bank had an APR of 44.54%, while CBG hard the highest with an APR of 45.13%.
The gap between top and bottom here could easily translate into thousands of cedis in extra repayments over just 12 months.
3-Year SME Loans: Republic Bank Leads Mid-Tenor Value
For those spreading repayments over three years, Republic Bank topped the affordability table at 28.63% APR, closely trailed by Bank of Africa (30.96%) and UMB (31.09%).
Those with the highest APR in this category are Access Bank (35.43%) and Ecobank (35.32%). That 7 percentage point spread between the cheapest and costliest deals can seriously impact a business’s working capital over time.
5-Year SME Loans: Bank of Africa Takes the Long Game
Long-term financing is where the APR spread really hits home. Bank of Africa offered the lowest cost at 23.37%, with Republic Bank at 27.92% and First Atlantic Bank at 30.05%.
On the other end, Agricultural Development Bank (ADB) stood out for all the wrong reasons with an APR of 45.92%, while UBA charged 36.29%. Over five years, that gap between 23% and 46% could mean paying nearly double in total finance costs.
The Bottomline
The BoG’s figures prove what many SMEs and businesses suspect that the choice of lender can make an enormous difference to the cost of capital. For entrepreneurs juggling thin margins, shaving even a few percentage points off APR can mean the difference between reinvesting in growth and treading water.
With the next APR release due in a month, the June 2025 snapshot offers a clear takeaway for the SME lending landscape in Ghana. For SMEs looking forward to securing a loan, shopping around using the report as a guide can save your business a fortune.
