Car loans in Ghana Explained- What you should know


Car loans in Ghana are typically for salaried individuals who have a steady source of income to repay the loan. Owning a car has always been a major necessity in today’s society. However, lack of cash flow has become an impediment for many people from getting such loans. Therefore, as a salary earner, it is good to know the ways you can buy a car and repay later. Obviously, you can achieve that by getting a car loan from a credible lender or bank, you know. The banks that offer car loans in Ghana, requirements, and how to apply are all-inclusive in this article. 

What you should know about a car loan in Ghana

Vehicle and Asset Finance (VAF) is a medium-term facility for salaried and non-salaried customers. They help these customers to purchase assets, such as vehicles of various types and power generators.

Car loan is a type of loan or financial aid for majorly salaried individuals, who intend to own a car. However, insufficient fund limits the type of car the borrower can actually get. In Ghana, some people make a lot of car savings. And there are loan companies available to meet the needs of these people.

What are the requirements for car loans in Ghana?

Before you apply for any loan, car loan inclusive. What first comes to your mind is what and what do I need for the loan. The knowledge of the basic requirement is the first step that confirms your eligibility for the loan. Below are the requirements for car loans in Ghana:

  1. Applicants must be employees who earn a salary worker.
  2. Maximum amount of GH₵‌150,000.00
  3. Maximum facility tenor is 48 months
  4. Vehicle must be brand new
  5. A complete loan application form
  6. Signed customer’s request letter
  7. Copies of most recent pay slips of 6 months
  8. National identification
  9. One passport photograph

Note: For the first bank car loan, download the first bank car loan form. Fill the form correctly, upload the required documents and submit at the nearest first bank branch.

What is the minimum amount for Car loans in Ghana?

It is important to know the minimum amount of loan obtainable for a car loan in Ghana. This will help you make plans on how you’ll manage the fund. For Car loans in Ghana, there is no actual minimum loan amount. Probably you can borrow all you need to buy the car.

Meanwhile, some savings and loan companies have limitations to the maximum amount you can borrow. This is regarding your salary scale or credit score. But there is no limitation to the minimum amount.

If you want to buy a car on credit in Ghana with a loan, this is what you should know about the process;

1. Approach a credible financial institution

There are credible financial institutions that offer affordable car loans. Once you apply for the loan, the banks will assess your eligibility and they will decide on whether you qualify for the loan you are asking for.

2. Some car dealers will allow you to buy a car now and pay later in Ghana

They will require you to have a minimum percentage of the total price of the car. For instance, a car dealer may decide that you should pay 50% of the total price of the car first. So if the car you want to buy costs 1 million cedis, you will pay five hundred thousand cedis at the time of purchase.

3. You need a written agreement on the time limit for the repayment

Some dealers give the buyer an option of negotiating the time that is convenient for them. While some others fixed a time of repayment for the buyer. Go for the dealer whose terms you are comfortable with.

List of banks in Ghana that offer car loans

There are loan companies and banks that offer car loans in Ghana. They include: 

  1. Universal microfinance
  2. Izwe savings and loan Kotobabi
  3. Advance Ghana saving and loan, Newtown branch
  4. Societe Generale
  5. Stanbic Bank Ghana
  6. First bank Ghana
  7. Republic bank Ghana
  8. Calbank
  9. Microfinance and small loan centre (MASLOC)
  10. AIDEZ small project international and so on.

Things to expect for car loans in Ghana

You need to note what you will get from the car loans before applying. This helps you to know the things to expect from the loan company. Though this varies regarding loan companies, but applies to most of them.

Things to expect includes:

  1. GH₵‌100 as the minimum overdraft limit
  2. There is no limit to maximum overdraft
  3. Monthly repayment of used limit or 30 days of a clean-up cycle
  4. 60% advance of your disposable net monthly salary
  5. Life insurance credit premium of 0.84% on approved limit against permanent disability and death
  6. Interest depends by overdraft used each month
  7. Facility fee of 2% charged on agreed limit and at each renewal

How to get Stanbic car loan

If you want to apply for a car loan with Stanbic Bank Ghana, it’ll be a lot easier if you have an account with them or work for them.

The following are the steps below for the application:

  1. Work for Stanbic profiled organization
  2. You must earn a minimum salary of GH₵‌400 per month
  3. Minimum salaried account relationship of:
  • One month – Workplace Banking Scheme companies/organizations
  • Three months–non-Workplace Banking Scheme companies/organizations
  • Customers with salaried Stanbic Current Account

You need to fill in a Personal Salary Advance application form and attach the documents below:

  1. Previous statement of account
  2. Pay slips from the past three months
  3. They will approve overdrafts subject to a positive reference from the credit bureau.

CalBank Auto loans

They make car loans available to individuals, consultants, and workers who earn salary with recognized working institutions to get a car for personal or company use.

The following are the features of CalBank Auto loans:

  1. Loan Repayment: Annuity payment Method
  2. Duration: 60 months or lesser.
  3. Personal Guarantee of applicant
  4. Provident Fund, if any.
  5. Vehicle registration and insurance in the joint names of CalBank and client.
  6. Debt Burden: Not over 45% of income.
  7. Pricing: CalBank Base Rate + Agreed Margin.
  8. Arrangement and processing fees: 3%.
  9. Maximum Loan: The Bank gives up to 80% of the worth of the vehicle.
  10. Readily available credit timely.
  11. Flexible terms of repayment.
  12. A team of dedicated account managers shall give prompt advisory services.

Eligibility for CalBank loan

Before you can get a car loan from CalBank, there are certain requirements you must meet. They are;

  1. Minimum Salary: GH₵‌500.00.
  2. Age: 18 -53 years.
  3. Employment Records: minimum of 6 months or at the discretion of the credit manager.
  4. Account History: Bank Statement of six months from clients with account relationships with other Banks.
  5. They shall notify clients on monthly loan repayment via our CalBank Alert.

Some benefits of car loan in Ghana

Applying for car loans comes with benefits. You may wonder what you could gain after getting a car loan.

The following are things you stand to gain, they include:

  1. Suitable terms
  2. Self-service
  3. Currency Options
  4. Flexible repayment duration
  5. Competitive interest rate


It’s essential to know whether you can repay a loan even before getting it. This is because, if you cannot repay your loan, you’ll find yourself in a worse financial situation than you were. Besides that, you might end up being blacklisted by credit bureaus in Ghana. There’s need to be salaried worker as the repayment for the loan is by monthly installment from your salary. However, there are also loan options for the unemployed to fulfill their financial commitments. That aside, but beware of loan sharks who would offer you loans without revealing hidden charges that come with those loans.

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