It’s legal requirement to provide APR to loan seekers – BoG tells banks

The Bank of Ghana (BoG) has told commercial banks that it is a legal requirement to provide Annualize Percentage Rate (APR) to customers who are seeking facilities from the financial institutions.

APR is the yearly interest generated by a sum that’s charged to borrowers or paid to investors.

The central bank also urged customers to demand from their financial institutions the ADR before they sign on their loan contracts.

This, the regulator said, would help them know how much the loan will cost after the duration.

In its financial literacy series, the BoG said “Always demand the annualize percentage Rate (APR) on your loan from your financial institution prior to acceptance of the loan facility.

“It will help you know how much the loan will cost you after the duration of the loan it is a legal requirement for your financial institution to provide you this information before you sign on your loan contract.”

Source: 3news