Large enterprises accounted for 48.5% of secured loans in Q4 2024
Large enterprises continued to dominate access to secured loans in the fourth quarter(Q4) of 2024, although their share decreased compared to the same period in 2023.
According to a report by the Bank of Ghana, large enterprises accounted for 48.5 per cent of secured loans in Q4 2024, down from 60.3 per cent in Q4 2023.
Individual borrowers saw a significant increase in their share, rising to 28 per cent from 20.4 per cent in the same period last year.
Private Enterprises-SMEs also experienced growth, taking 18.5 per cent of secured loans, up from 14.3 per cent in Q4 2023.
Micro businesses, however, saw their share decline to 1.8 per cent from 3.3 per cent.
The report also highlighted trends in average lending rates for secured loans.
Banks offered the lowest average lending rate at 28.6 per cent, slightly down from 28.8 per cent in Q4 2023.
Finance and leasing companies saw a decrease to 33.1 per cent from 27.4 per cent.
Rural and Community Banks’ rates also marginally decreased to 33.5 per cent from 34.4 per cent.
Microcredit companies’ rates increased slightly to 49.5 per cent from 47.7 per cent.
Savings and Loans Companies’ rates decreased to 43.0 per cent from 44.1 per cent, while Microfinance Institutions saw a decline to 46.5% from 51.1 per cent.
Finance Houses recorded the highest average lending rate at 59.4 per cent, a slight decrease from 60.3 per cent in Q4 2023.
Sectorally, the Commerce and Finance sector remained the largest recipient of secured loans, with a share of 44.1 per cent, a slight increase from 43.3 per cent in Q4 2023.
The construction sector followed with 19.2 per cent and the services sector with 15.9 per cent.
Manufacturing accounted for 4.8 per cent, while Information & Communications and Mining & Quarrying received 3.9 per cent and 2.9 per cent, respectively.
Regionally, the Greater Accra Region continued to be the hub for secured loan activity, accounting for 69.6 per cent of the total value of secured loans, a slight increase from 70.8 per cent in Q4 2023.
The report, compiled by the Bank of Ghana, provides insights into the secured lending landscape and its evolution over the past year.
It emphasises the dynamic nature of borrower categories and lending rates across various financial institutions and sectors.
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