Financial institutions cautioned not to use unethical means to recover loans

During a two-day training workshop in Takoradi, Mr. Cudjoe spoke to B&FT. The workshop was for selected journalists from the Western and Western North Regions.

He advised banks and financial institutions to stop pursuing families of deceased borrowers for loan repayments if insurance was paid.

“Borrowers should not avoid repayment,” he said. “Instead, they should approach the bank and explain their situation.” This can help restructure their payment plans.

Before taking out a loan, individuals must read and understand all key features. “The terms and conditions should match your needs,” he explained.

Mr. Cudjoe emphasized that some products may benefit one person but not another. He also noted that individuals should negotiate interest rates based on their creditworthiness.

A pre-agreement truth document should be provided before signing any loan agreement. This document outlines key facts about the loan and its main features.

Customers must pay attention to the Annualised Percentage Rate (APR) to understand the loan's duration. Additionally, anyone willing to guarantee a loan should know the borrower well before signing any documents.