Ghana's Secured Loans Market rises 2.8% in Third Quarter

Ghana's banking sector has reported a marginal increase in the value of secured loans granted to customers in the third quarter of 2024.

According to data from the country's financial regulator, the total value of secured loans rose by 2.8% to GH¢5.6 billion, compared to the same period last year.

The growth in secured lending was largely driven by Specialised Deposit-Taking Institutions (SDIs), which saw a significant increase of 75% in the value of loans granted. In contrast, banks recorded a decline of 18.7% in secured lending over the same period.

The data also reveals a shift in the market share of secured loans among different types of financial institutions. While banks still dominate the market, their share of secured loans decreased to 62.3% in the third quarter of 2024, down from 78.8% in the same period last year.

In contrast, Savings and Loans Companies, Rural Community Banks, and Microfinance Institutions all saw an increase in their market share of secured loans. The growth in secured lending by these institutions suggests a deepening of financial inclusion in Ghana, as more individuals and businesses access credit from a wider range of financial providers.

Source: Lead News Online