Digital Lenders under Scrutiny in Ghana: Focus on Concealed Charges and Elevated Default Rates
Bank of Ghana to Introduce Digital Lending Guidelines in August 2025
The Bank of Ghana has announced plans to issue digital lending guidelines in August 2025, aiming to address harmful lending practices and improve transparency in the country's digital lending sector. These guidelines will focus on regulating digital lenders who provide loans via apps, websites, USSD, and APKs.
The new rules will target Ghana's persistently high Non-Performing Loans (NPLs) and will cap NPL ratios at 10% of gross loans by December 2026. They will also mandate write-offs of fully provisioned, unrecoverable loans and tighten loan restructuring and repayment conditions.
To protect consumers, the guidelines will prohibit unethical debt recovery practices such as harassment, defamation, and the use of abusive language towards loan defaulters. They will ensure transparency in loan terms, with no hidden charges to borrowers, and will require clear disclosure of all fees, interest rates, and loan conditions.
The guidelines will also include measures to prevent over-indebtedness by assessing borrowers’ ability to repay. They will establish guidelines on fair marketing and responsible lending practices to avoid misleading loan offers. Furthermore, they will enforce timely collateral recovery and strengthen data privacy standards, including protection against unauthorized access to borrowers’ contact lists.
The new rules will also cap Optional Issuer Fees (OIFs) at 2% for cross-currency card transactions. The Bank has flagged unethical pricing tactics, including charging interest on inactive credit accounts where accumulated interest exceeds the original loan. In response to growing concerns over opaque fees on card transactions, the new directive will require mandatory, upfront disclosure of all applicable fees before transactions are completed.
The Bank of Ghana is also developing broader digital finance regulatory frameworks that include open banking and digital credit regulations. These aim to expand financial inclusion, especially supporting SMEs, and build a stronger legal foundation for digital financial services by leveraging technologies like blockchain and AI.
The goal of the new rules is to shield vulnerable consumers and encourage responsible digital lending and fintech innovation. The new directive will publicly identify willful defaulters in financial statements, and the central bank's actions aim to protect consumers, restore transparency, and strengthen the country's financial resilience.
Young people and informal workers are increasingly falling victim to online lenders offering quick cash but delivering hidden fees, harassment, and fraud. The aim of the new rules is to clean up the digital lending sector and safeguard borrowers. The new rules will include licensing and authorization, ensuring that digital lenders operate within a legal framework and adhere to ethical standards.
The Bank of Ghana's move aligns with their broader digital finance reforms intended to enhance consumer protection and financial system stability within Ghana’s fast-growing digital lending and payments ecosystem. While the detailed text of the August 2025 lending guidelines has not been publicly released yet, these steps are expected to make a significant impact in promoting fair and transparent digital lending practices in Ghana.
The digital lending guidelines, scheduled to be introduced by the Bank of Ghana in August 2025, will aim to promote responsible digital lending and fintech innovation in Ghana's industry, finance, and banking-and-insurance sectors. These guidelines, aimed at protecting vulnerable consumers and addressing harmful lending practices, will specifically focus on regulating digital lenders that provide loans via apps, websites, USSD, and APKs.
