Borrowing from the bank is a good servant but a bad master - this alteration of the age-old adage that "fire is a good servant but a bad master", encapsulates the dual nature of bank borrowing.
Banks in Ghana grant several credit facilities including loans, overdrafts, guarantees, letters of credit and in recent times, credit cards, to their individual and business customers.
The demand for these credit facilities, which are simply referred to as bank loans in this article, has shown significant increase over the years.
According to the 2024 PwC Ghana Banking Survey Report, bank loans grew from GHS46.86 billion in 2020 to GHS67.26 billion in 2023, an increase of 43.53%, which is an indication that borrowers continue to access more of these credit facilities to meet various needs.
