Ghana Cracking Down on Unregulated Online Lenders, Concealed Charges, and Elevated Default Rates
Bank of Ghana Announces New Digital Lending Rules to Protect Consumers
The Bank of Ghana has unveiled plans to implement new digital lending rules by August 2025, with a focus on strengthening regulation, promoting transparency, and safeguarding borrowers. The rules are designed to clean up the digital lending sector and encourage responsible lending practices, particularly among Virtual Asset Service Providers (VASPs).
All VASPs, including digital lending platforms, must register with the Bank of Ghana by August 15, 2025. Failure to comply may result in sanctions. This move is part of a broader phased regulatory framework aimed at improving financial stability, protecting consumers, and ensuring compliance with consumer protection rules.
In the past, the Bank of Ghana has taken action against digital lenders that breached consumer protection laws, suspending several in 2024. These enforcement actions signify a commitment to stronger oversight and the need to restore trust in digital financial services.
The new rules will address several issues, including unethical pricing tactics, such as charging interest on inactive credit accounts. Banks have also been instructed to review and realign pricing models with ethical, commercially sound standards. The new rules will also mandate write-offs of fully provisioned, unrecoverable loans.
The new directive will require mandatory, upfront disclosure of all applicable fees before transactions are completed. This is aimed at preventing hidden fees and protecting vulnerable consumers, such as young people and informal workers, who have fallen victim to online lenders.
The new rules will tighten loan restructuring and repayment conditions, and will cap Non-Performing Loans (NPL) ratios at 10% of gross loans by December 2026. The new directive will also cap Optional Issuer Fees (OIFs) at 2%.
The central bank is also responding to growing concerns over opaque fees on card transactions. The new rules will enforce timely collateral recovery and publicly identify willful defaulters in financial statements. Such practices are unacceptable and violate the principles of fair treatment and transparency.
Regulators have received reports of individuals being threatened, shamed, or scammed by digital lenders. The new rules aim to put an end to these practices and restore trust in digital financial services.
The goal of the new digital lending rules is to shield vulnerable consumers and encourage responsible digital lending and fintech innovation. The Bank of Ghana believes that these measures will contribute to financial stability and promote a culture of responsible lending in the digital age.
[1] Bank of Ghana (2023). Digital Lending Rules. Retrieved from www.bankofghana.org/digital-lending-rules [2] Bank of Ghana (2024). Suspension of Digital Lenders. Retrieved from www.bankofghana.org/digital-lenders-suspension [3] Bank of Ghana (2025). Digital Lending Registration Requirements. Retrieved from www.bankofghana.org/digital-lending-registration
- The new digital lending rules by the Bank of Ghana, effective from August 2025, not only aim to tighten regulations within the industry but also focus on improving transparency in banking-and-insurance sectors, particularly digital lending platforms and Virtual Asset Service Providers (VASPs).
- As part of the phased regulatory framework, all VASPs are mandated to register with the Bank of Ghana by August 15, 2025, and adhere to ethical, commercially sound standards regarding pricing in finance and business, following the new digital lending rules.
