Bank of Ghana Urges Debtors to Repay Loans Promptly and Use Credit Scores Responsibly

Introduction

The Bank of Ghana (BoG) has launched a nationwide awareness campaign aimed at improving loan‑repayment behaviour and promoting the responsible use of credit‑score tools. In a recent workshop organised under the Borrowers and Lenders Act, senior BoG officials reminded borrowers—both individuals and businesses—that timely repayments and disciplined borrowing are essential pillars of financial stability in Ghana.

This article breaks down the key messages delivered by BoG’s Second Deputy Governor Matilda Asante‑Asiedu, the reaction of the Ghana National Chamber of Commerce and Industry (GNCCI), and the practical steps borrowers can take to protect their credit ratings while growing their enterprises.

Analysis

Why Timely Repayment Matters

When borrowers honour their repayment schedules, they reduce the risk of non‑performing loans (NPLs) that can weaken the banking sector’s balance sheets. BoG’s data show that a 10 % rise in on‑time repayments can lower systemic risk indicators by up to 4 %.

Credit Scores as a Financial Tool

Credit scores are no longer just a “background check” for lenders; they are increasingly used by merchants, landlords, and even utility providers to assess risk. Misusing a credit‑score facility—such as taking a business loan for personal luxury—can lead to a downgrade that hampers future access to affordable financing.

The Role of the Borrowers and Lenders Act

The Borrowers and Lenders Act (2020) provides a legal framework that obliges lenders to disclose loan terms clearly and requires borrowers to understand the contractual obligations before signing. BoG’s workshop highlighted the Act’s relevance in ensuring both parties act in good faith.

Industry Perspective: GNCCI’s Call for Better Access

Stephane Miezan, President of the Ghana National Chamber of Commerce and Industry, applauded BoG’s efforts to lower interest rates but warned that “access to finance” remains a bottleneck. He urged the central bank to streamline credit‑score integration for SMEs, especially as interest rates trend downward.

Summary

In short, the Bank of Ghana is reinforcing two core messages:

• Repay on schedule: Prompt repayments protect the banking system and keep borrowing costs low.
• Use credit responsibly: Borrowers should allocate loan proceeds to their intended commercial purpose, avoid personal extravagance, and maintain a healthy credit score.

These principles, if widely adopted, will help Ghana sustain its recent progress in reducing the cost of credit while expanding financial inclusion.

Key Points

Practical Advice for Borrowers

1. Create a Repayment Calendar

List every loan’s due date, amount, and payment method in a digital calendar. Set automatic reminders 5 days before each installment to avoid missed payments.

2. Match Loan Purpose with Business Plan

Before signing a loan agreement, draft a simple business plan that outlines how the funds will be used (e.g., inventory purchase, equipment upgrade, marketing). Keep receipts and track expenditures against this plan to demonstrate purposeful use.

3. Monitor Your Credit Score Regularly

Ghana’s credit bureaus—such as Credit Reference Bureau (CRB) and the Ghana Credit Reporting Agency—allow borrowers to request a free credit report once a year. Review the report for errors, dispute inaccuracies, and watch for sudden drops that may indicate misuse.

4. Communicate with Lenders Proactively

If cash flow issues arise, contact the bank early to discuss restructuring options. Early dialogue can prevent default and preserve your credit rating.

5. Leverage the Borrowers and Lenders Act

Use the Act’s provisions to request clear explanations of interest calculations, penalties, and pre‑payment options. If a term feels ambiguous, ask for it in writing before signing.

Points of Caution

• Over‑borrowing: Taking multiple loans simultaneously can strain cash flow and increase the risk of default.
• Using business loans for personal consumption: This practice can trigger a credit‑score downgrade and may constitute a breach of the loan contract under the Borrowers and Lenders Act.
• Ignoring loan covenants: Many commercial loans contain performance covenants (e.g., maintaining a minimum debt‑to‑equity ratio). Violating these can lead to accelerated repayment demands.
• Assuming lower interest rates guarantee easy access: Even with reduced rates, lenders still assess creditworthiness; a poor credit score can still block financing.

Comparison: Traditional vs. Responsible Borrowing

Legal Implications

The Borrowers and Lenders Act (Act 2020) provides a legal backbone for both lenders and borrowers. Key provisions relevant to the BoG’s guidance include:

1. Transparency Clause: Lenders must disclose all loan terms in plain language, including interest rates, fees, and repayment schedules.
2. Purpose‑Specific Use: For certain categories of credit (e.g., SME development loans), the Act requires borrowers to use funds for the stated purpose and keep supporting documentation.
3. Default Remedies: Failure to meet repayment obligations can trigger legal actions, including seizure of collateral and reporting to credit bureaus.
4. Consumer Protection: Borrowers have the right to a 14‑day cooling‑off period for certain loan agreements, during which they may cancel without penalty.

Violating these provisions can lead to civil penalties, reputational damage, and, in extreme cases, criminal liability for fraud.

Conclusion

The Bank of Ghana’s call for prompt loan repayment and responsible credit‑score usage is more than a public‑service announcement—it is a strategic effort to fortify Ghana’s financial system while expanding access to affordable credit. By aligning borrowing practices with the principles outlined in the Borrowers and Lenders Act, both individuals and businesses can safeguard their credit health, support macro‑economic stability, and ultimately unlock growth opportunities.

Adopting disciplined repayment schedules, using loans for their intended commercial purpose, and actively monitoring credit scores will not only keep borrowing costs low but also enhance the overall resilience of Ghana’s banking sector.

FAQ

Sources

• Bank of Ghana, Press Release – “Sensitisation Programme on Borrowers and Lenders Act,” December 2025.
• Borrowers and Lenders Act, Republic of Ghana, 2020.
• Ghana National Chamber of Commerce and Industry (GNCCI) – Statements by President Stephane Miezan, December 2025.
• Credit Reference Bureau (CRB) – Annual Credit Report Guidelines, 2024‑2025.
• World Bank – Ghana Financial Stability Report, 2024.