(Business in Cameroon) - During the first half of 2018, overall borrowing rates charged by credit institutions in Cameroon fell. According to a report issued by the Bank of Central African States (Beac), lending rates in Cameroon stood at 6.22% in the first half of 2018 compared with 6.85% in the previous half.
Beac says banks are cheaper than financial institutions in terms of credit cost invoicing. Regarding credit pricing by type of beneficiary, loans to individuals and SMEs are on average the most expensive (respectively 12.36% and 8.50% in banks, and 9.22% and 16.60% in financial institutions). Large companies that capture the largest share of loans have the lowest lending rates, averaging 5.38% over the period under review.
Beac also notes a disparity in credit costs by duration between different types of beneficiaries. For individuals and SMEs, borrowing rates for short-term loans are on average higher than those for long-term loans, highlighting a reverse rate structure for these types of beneficiaries.
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