Microcredit & Money Lending Companies in Ghana

1 Microcredit Company

A microcredit institution is essentially an entity that gives small loans, also called microloans, to impoverished borrowers and people who typically lack collateral security, steady employment, or verifiable credit history.

The idea is to alleviate poverty and support entrepreneurship in poor communities. Money lending companies in Ghana have in the past years worked to support ailing businesses and individuals by offering them small loans to help lift them and their families out of poverty.

2 Difference between Microcredit and Microfinance

According to EnterSlice, a simple difference between microfinance and microcredit is that microcredit is simply a small loan facility provided to people with little earning to motivate them to become self-employed.

Microfinance on the other hand refers to financial services offered to small enterprises and entrepreneurs who do not qualify for loans from other banks and financial institutions. You can take a look at our recently written article on a complete list of microfinance institutions in Ghana.

Also, microcredit includes credit activities, while microfinance includes credit activities and non-credit activities like savings, pension, insurance, etc.

3 Mobile Money Instant Loans

Many of these companies offer instant loans via mobile money to their customers. These loans are often “fast and easy long-term loans”, as they call them. Interest on these loans ranges from 1% per day to the neighbourhoods of 7% per month, and the amounts can run up to Ghs1000 or more.

4 List of Money Lending Companies in Ghana

In alphabetical order, the following is a complete list of licenced banks in Ghana as of May 2021.