The Bank of Ghana’s (BoG) financial literacy on the operations of its Collateral Registry, is an initiative established to promote transparency in the credit market and improve access to finance for individuals and businesses.
The Collateral Registry, operational since February 1, 2010, serves as a public database where lenders can register their interests in collateral provided by borrowers as security for loans. The registry ensures that the use of assets as collateral is properly documented, allowing both lenders and borrowers to transact with greater confidence.
A key objective of the Collateral Registry is to facilitate access to credit by providing an efficient and transparent system for recording security interests in movable and immovable assets. The registry also makes information on registered interests publicly available to prevent disputes and reduce lending risks.
The Collateral Registry is designed to make credit more accessible by enabling borrowers to use a wide range of assets as security, while ensuring that lenders’ rights are legally protected.
Under the system, when a borrower pledges an asset, such as a vehicle, building, stock, or farm produce, as collateral, the lender registers a security interest in that asset. This registration gives the lender legal rights over the collateral in case the borrower defaults on repayment, though it does not transfer ownership of the property.
The Bank of Ghana advises borrowers to always review loan terms carefully and seek professional advice before pledging their assets. Borrowers are also encouraged to insist on a registration acknowledgment from lenders once their collateral has been recorded in the registry.
Transparency and Verification
One of the notable features of the Collateral Registry is that it allows the public to conduct searches to verify whether a property has been used as collateral. This helps potential buyers or investors avoid purchasing encumbered assets.
A search can be conducted using several identifiers, including the borrower’s name, ID number, asset details, or the security interest registration number. Searches can be performed online via the Collateral Registry Ghana website at www.collateralregistry.gov.gh.
Who Can Register
The registry is open to a wide range of financial and non-financial institutions, including; Banks, Individuals, Businesses, Companies, Financial NGOs, Finance Houses, Finance and Leasing, Microfinance Companies, Savings and Loans Leasing Companies, Credit Unions, Trade Creditors, Investment Firms, Foreign institutions, Insurance Companies, Micro Credit Companies, Government institutions/agencies, and Agents (representatives of the financial institutions i.e. lawyers/law firms or consultants).
Multiple Loans, One Asset
The introduction of the Secured Transactions Regime under the Collateral Registry has also made it possible for borrowers to use the same asset to secure loans from multiple lenders, subject to full disclosure and proper registration. This flexibility has strengthened confidence in the credit market and provided new avenues for small and medium-sized enterprises (SMEs) to access funding.
Fees and Payments
The BoG notes that the Collateral Registry’s services come at minimal cost. Registration of a security interest costs GH₵20, searches cost GH₵10, and late registrations attract a fee of GH₵25. Payments can be made via mobile money platforms, Visa/MasterCard, or at any Bank of Ghana regional branch.
The registry has become a cornerstone of Ghana’s financial inclusion agenda, helping to unlock capital for businesses and reduce credit risk in the financial system.
By increasing public awareness, the Bank of Ghana hopes to further promote the use of collateralized lending as a tool for expanding access to credit, especially for individuals and small enterprises that traditionally struggle to obtain financing.
