The Bank of Ghana (BoG) has informed commercial banks that it is a legal requirement to provide Annualized Percentage Rate (APR) to customers seeking financial institutions’ services.
The annual percentage rate (APR) is the yearly interest generated by a sum charged to borrowers or paid to investors.
The central bank also urged customers to demand the ADR from their financial institutions before signing loan contracts.
According to the regulator, this will help them determine how much the loan will cost after the duration.
In its financial literacy series, the BoG said, “Always demand the annual 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.”
