SME loans in Ghana continue to attract some of the highest borrowing costs in the banking industry, with new figures from the Bank of Ghana revealing wide differences in lending rates and renewed pressure on small businesses seeking affordable credit.
The central bank's Annualised Percentage Rate (APR) Report for May 2026 paints a familiar picture.
While competition among banks has created cheaper financing options for some borrowers, many small and medium-sized enterprises are still paying a hefty premium to access capital.
For businesses already grappling with rising operating costs, the latest figures are unlikely to provide much comfort.
Wide Gap in Lending Rates
The report shows that one-year SME loans carried interest rates as high as 33.58 percent, with Guaranty Trust Bank Ghana recording the highest Annualised Percentage Rate in that category.
At the other end of the scale, Standard Chartered Bank Ghana offered the lowest one-year SME lending rate at 11.03 percent, exposing a gap of more than 22 percentage points between lenders.
The trend continued across longer-term facilities. Universal Merchant Bank posted the highest APR of 31.09 percent for three-year SME loans, while Stanbic Bank Ghana offered the lowest rate at 13.34 percent.
For five-year facilities, Agricultural Development Bank recorded the highest APR at 25.07 percent, compared with Ecobank Ghana's 13.97 percent.
The variation highlights how borrowing costs can differ sharply depending on the lender, even for similar loan products.
Large companies continue to enjoy significantly cheaper access to credit. According to the Bank of Ghana, one-year corporate loans started from just 7.62 percent at Absa Bank Ghana, while three-year facilities were available from as low as 9.78 percent.
The difference reflects banks' assessment of risk. Established firms typically have stronger balance sheets, longer credit histories and more reliable cash flows, making them less risky to finance than smaller businesses.
That pricing advantage leaves many SMEs facing a difficult choice between scaling back investment plans or borrowing at considerably higher costs.
Credit Costs Remain Uneven
The Bank of Ghana reported that the average Annualised Percentage Rate across the banking sector stood at 17.64 percent in May, while the Ghana Reference Rate remained unchanged at 10.03 percent.
The central bank explained that the APR captures the full cost of borrowing by combining the benchmark reference rate with each bank's risk premium and other applicable lending charges.
The latest report reinforces concerns that access to affordable finance remains uneven across the banking industry.
SMEs, which account for a substantial share of Ghana's businesses and employment, continue to face financing conditions that many analysts believe could slow expansion, limit job creation and dampen private-sector growth.
Even as lending competition gradually intensifies, the numbers suggest that affordable credit remains out of reach for many of the country's smaller enterprises.
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