Personal Loan Agreement (Ghana)
Personal Loan Agreement
PERSONAL LOAN AGREEMENT made on [Agreement Date] under the Contracts Act 1960 (Act 25), the Moneylenders Ordinance 1951 (Cap. 176), and the Borrowers and Lenders Act 2008 (Act 773) of the Republic of Ghana.
LENDER: [Lender Name], of [Lender Address] (the "Lender"); and
BORROWER: [Borrower Name], of [Borrower Address] (the "Borrower").
1. Loan
The Lender agrees to advance to the Borrower the sum of [Loan Amount] (the "Principal") on [Disbursement Date] for the following purpose: [Loan Purpose].
The Borrower acknowledges receipt of the Principal and agrees to repay it together with interest as provided in this Agreement.
2. Interest
Interest shall accrue on the outstanding Principal at the rate of [Interest Rate] calculated on a simple (non-compounding) basis unless the Parties expressly agree otherwise in writing.
Interest shall be payable in accordance with the repayment schedule in Clause 3.
3. Repayment
The Borrower shall repay the Principal and interest by [Repayment Schedule], commencing on [Repayment Start Date] and ending no later than [Final Repayment Date].
The Borrower may repay the outstanding balance in full at any time before the Final Repayment Date without penalty, unless otherwise agreed in writing.
4. Security
Security provided by the Borrower: [Security Provided].
Where security is provided over personal property, the Lender shall register the security interest with the Collateral Registry maintained by the Bank of Ghana (BoG) under Section 23 of the Borrowers and Lenders Act 2008 (Act 773).
5. Default
The Borrower shall be in default if: (a) any repayment instalment is not paid within fourteen (14) days of its due date; (b) the Borrower becomes insolvent or makes any arrangement with creditors; or (c) any representation made by the Borrower in this Agreement proves to be materially false.
Upon default, the Lender may declare the entire outstanding balance, together with accrued interest, immediately due and payable and may enforce any security provided under Clause 4.
6. Governing Law and Disputes
This Agreement is governed by the laws of the Republic of Ghana, including the Contracts Act 1960 (Act 25), the Moneylenders Ordinance 1951 (Cap. 176), and the Borrowers and Lenders Act 2008 (Act 773).
Any dispute arising from this Agreement shall be resolved by [Dispute Forum].
Signatures
IN WITNESS WHEREOF the Parties have executed this Personal Loan Agreement on the date first written above.
Lender
________________
Signature
Borrower
________________
Signature
What Is a Personal Loan Agreement (Ghana)?
A Personal Loan Agreement in Ghana is a legally binding contract under which one party (the Lender) advances a specified sum of money to another party (the Borrower), who agrees to repay the principal together with agreed interest on a schedule set out in the agreement. The Personal Loan Agreement (Ghana) is governed by the Moneylenders Ordinance 1951 (Cap. 176), the Contracts Act 1960 (Act 25), and the Borrowers and Lenders Act 2008 (Act 773), which collectively regulate the terms on which money may be lent and recovered in Ghana.
Section 1 of the Moneylenders Ordinance 1951 (Cap. 176) defines a moneylender as any person whose business is that of moneylending, or who advertises or announces himself as a moneylender. A personal loan between friends, family members, or acquaintances who are not carrying on a moneylending business as a profession is generally not subject to the licensing requirements of the Ordinance, but is still subject to the Contracts Act 1960 (Act 25) and the Borrowers and Lenders Act 2008 (Act 773).
The Borrowers and Lenders Act 2008 (Act 773), administered by the Bank of Ghana (BoG), establishes the Collateral Registry for the registration of security interests over personal property in Ghana. Section 23 of Act 773 requires lenders who take a security interest in personal property as collateral for a loan to register that interest with the Collateral Registry maintained by the Bank of Ghana (BoG). Registration protects the lender's priority against competing claims from other creditors.
The Contracts Act 1960 (Act 25) sets the general requirements for a valid and enforceable contract in Ghana: offer, acceptance, consideration, capacity, and lawful object. A Personal Loan Agreement satisfies these requirements where the lender makes the loan for good consideration (the borrower's promise to repay) and both parties have legal capacity. Interest on personal loans in Ghana must not exceed the rates prescribed by the Bank of Ghana (BoG) from time to time. The BoG publishes a monetary policy rate and a maximum lending rate cap applicable to regulated lenders.
The Income Tax Act 2015 (Act 896), administered by the Ghana Revenue Authority (GRA), governs the tax treatment of interest income earned by lenders in Ghana. Interest received by an individual lender may constitute taxable income under Act 896. The Electronic Transactions Act 2008 (Act 772) recognises the legal validity of electronic signatures and electronic records, meaning a Personal Loan Agreement executed electronically is admissible before the High Court (Commercial Division) in Accra and the District Courts of Ghana under Section 7 of Act 772.
The High Court (Commercial Division) in Accra and the District Courts of Ghana enforce Personal Loan Agreements under the Contracts Act 1960 (Act 25) where the borrower defaults. Section 62 of the Courts Act 1993 (Act 459) gives the District Court jurisdiction over civil claims not exceeding the prescribed monetary limit, which applies to many personal loan disputes. Claims above the District Court limit are heard by the High Court. The Ghana Bar Association maintains a register of solicitors who can advise on loan documentation and recovery.
When Do You Need a Personal Loan Agreement (Ghana)?
A Personal Loan Agreement in Ghana is needed whenever money is lent between individuals, family members, friends, or private parties outside of a regulated banking relationship, and both the lender and the borrower wish to protect their legal rights.
A Personal Loan Agreement is required when a family member, friend, or business acquaintance in Ghana lends a significant sum to another person and needs written evidence of the terms — including the interest rate, repayment schedule, and consequences of default — to avoid disputes and to enable enforcement before the courts.
A Personal Loan Agreement is needed when a private lender advances money to a borrower against a security interest in personal property such as a motor vehicle, equipment, or receivables, and the lender needs to register that security interest with the Collateral Registry maintained by the Bank of Ghana (BoG) under Section 23 of the Borrowers and Lenders Act 2008 (Act 773).
A Personal Loan Agreement is required before advancing an employee loan or salary advance to an employee under an employment contract governed by the Labour Act 2003 (Act 651), to record the repayment terms and authorise deductions from salary by agreement.
A Personal Loan Agreement is needed where a non-bank savings and loans company or microfinance institution licensed by the Bank of Ghana (BoG) under the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930) advances personal credit to individual customers and needs to document the loan terms in a manner consistent with BoG consumer credit guidelines.
A Personal Loan Agreement is required to record loans made by members of susu clubs or informal savings groups widely used in Ghana, providing a formal record of the terms and reducing the risk of disputes within the group.
Parties in Ghana should execute a Personal Loan Agreement before any money changes hands, not after a dispute has arisen. The courts of Ghana require written evidence of loan terms to enforce repayment claims, and oral evidence of loan terms is difficult to establish in contested proceedings before the High Court (Commercial Division) in Accra or a District Court.
Parties in Ghana should prepare a Personal Loan Agreement (Ghana) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930), the Bank of Ghana (BoG) regulates banking. The Securities Industry Act 2016 (Act 929) and Securities and Exchange Commission (SEC Ghana) regulate capital markets. Section 48 of the Bills of Exchange Act 1961 (Act 55) governs promissory notes. The Ghana Revenue Authority (GRA) administers tax obligations. The National Insurance Commission (NIC) regulates insurance. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Personal Loan Agreement (Ghana)
A binding Personal Loan Agreement in Ghana under the Contracts Act 1960 (Act 25) and the Borrowers and Lenders Act 2008 (Act 773) must contain the following essential elements.
Parties: Full legal names, addresses, and Ghana Card numbers (National Identification Authority — NIA) or passport numbers of the Lender and the Borrower. Where the Borrower is a company incorporated under the Companies Act 2019 (Act 992), the company registration number issued by the Office of the Registrar of Companies (ORC) should be stated.
Loan Amount: The principal sum advanced, expressed in Ghana Cedis (GHS) with words and figures, consistent with the Bank of Ghana (BoG) foreign exchange regulations under the Foreign Exchange Act 2006 (Act 723) where the loan is in a foreign currency.
Interest Rate: The agreed annual interest rate or monthly interest rate, expressed as a percentage. The rate must comply with any maximum lending rate applicable under Bank of Ghana (BoG) monetary policy guidelines. A statement that interest will not compound unless expressly agreed is recommended.
Repayment Schedule: The repayment dates, instalment amounts, and total amount payable (principal plus interest). A repayment table setting out each instalment date and the outstanding balance after each payment is best practice for personal loans in Ghana.
Purpose of Loan: A statement of the purpose for which the Borrower will use the loan proceeds, relevant for tax and regulatory compliance under the Income Tax Act 2015 (Act 896) and the Anti-Money Laundering Act 2020 (Act 1044) administered by the Financial Intelligence Centre (FIC).
Security: Where the loan is secured, a description of the collateral (e.g., a motor vehicle, equipment, or land title document held at the Lands Commission), and the obligation to register the security interest with the Collateral Registry under Section 23 of the Borrowers and Lenders Act 2008 (Act 773).
Default and Acceleration: Events of default — including missed instalments, insolvency, or breach of any covenant — entitling the Lender to demand immediate repayment of the entire outstanding balance and to enforce any security.
Early Repayment: The Borrower's right to repay the loan early and any prepayment fee applicable.
Governing Law and Dispute Resolution: Ghana law governs the agreement. Disputes may be referred to the High Court (Commercial Division) or a District Court in Accra or other applicable jurisdiction, or to arbitration under the Alternative Dispute Resolution Act 2010 (Act 798) administered by the Ghana Arbitration Centre.
Forms-legal.com provides this Personal Loan Agreement template as a starting point for individuals and businesses in Ghana. Parties advancing or receiving loans of significant value should obtain legal advice from a solicitor enrolled with the Ghana Bar Association to confirm compliance with the Borrowers and Lenders Act 2008 (Act 773) and Bank of Ghana (BoG) lending guidelines.
Additional compliance elements for a Personal Loan Agreement (Ghana) used in Ghana include: Under the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930), the Bank of Ghana (BoG) regulates banking. The Securities Industry Act 2016 (Act 929) and Securities and Exchange Commission (SEC Ghana) regulate capital markets. Section 48 of the Bills of Exchange Act 1961 (Act 55) governs promissory notes. The Ghana Revenue Authority (GRA) administers tax obligations. The National Insurance Commission (NIC) regulates insurance. Forms-legal.com provides this template as a starting point for Ghana-compliant documentation.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Personal Loan Agreement (Ghana) (Ghana) [Legal document template]. Forms Legal. https://forms-legal.com/ghana/financial/loans/personal-loan-agreement-ghana
"Personal Loan Agreement (Ghana) (Ghana)." Forms Legal, 2026, https://forms-legal.com/ghana/financial/loans/personal-loan-agreement-ghana.
@misc{formslegal-personal-loan-agreement-ghana,
author = {{Forms Legal}},
title = {Personal Loan Agreement (Ghana) (Ghana)},
year = {2026},
howpublished = {\url{https://forms-legal.com/ghana/financial/loans/personal-loan-agreement-ghana}},
note = {Free legal document template}
}
Frequently Asked Questions
The legal interest rate for personal loans in Ghana is not fixed by a single statute at a universal cap, but is subject to several regulatory constraints. The Bank of Ghana (BoG) publishes a monetary policy rate and sets benchmark lending rates that influence the maximum rates chargeable by licensed financial institutions. The Moneylenders Ordinance 1951 (Cap. 176) empowers courts to reopen loan transactions where the interest rate is excessive or unconscionable and to reduce the interest to a fair rate. Under Section 24 of the Borrowers and Lenders Act 2008 (Act 773), the Bank of Ghana (BoG) may prescribe regulations governing the terms of consumer credit, including maximum interest rates for personal loans. Parties entering into a Personal Loan Agreement in Ghana should agree on an interest rate that is commercially reasonable, expressly stated as an annual percentage rate (APR), and consistent with prevailing Bank of Ghana (BoG) guidelines. The High Court (Commercial Division) in Accra will decline to enforce interest provisions that are penal or grossly unconscionable.
A simple unsecured personal loan between private parties in Ghana does not require registration with any government authority. However, where the loan is secured by a security interest in personal property — such as a motor vehicle, equipment, inventory, receivables, or other movable assets — the security interest must be registered with the Collateral Registry maintained by the Bank of Ghana (BoG) under Section 23 of the Borrowers and Lenders Act 2008 (Act 773). Registration of the security interest protects the Lender's priority against other creditors of the Borrower and against a liquidator in the event of the Borrower's insolvency. Where the loan is secured by a mortgage over land or immovable property, the mortgage must be registered with the Lands Commission under the Land Registration Act 1962 (Act 122) and the Land Act 2020 (Act 1036). Failure to register a registrable security interest may render the security interest void against third parties and insolvency practitioners.
Where a borrower defaults on a Personal Loan Agreement in Ghana, the lender has several remedies available under the Contracts Act 1960 (Act 25) and the Borrowers and Lenders Act 2008 (Act 773). For unsecured loans, the lender may sue the borrower for the outstanding principal and accrued interest before the High Court (Commercial Division) in Accra or the District Court (for claims within the District Court's monetary jurisdiction). A money judgment obtained from a Ghanaian court can be enforced by garnishment of bank accounts, attachment of earnings, or seizure and sale of the borrower's assets. For secured loans, the lender may enforce the security interest registered with the Collateral Registry under Act 773 by repossessing and selling the collateral in accordance with the enforcement procedures prescribed by Act 773, without first obtaining a court order — provided the security agreement expressly grants the right of self-help enforcement. Lenders should send a written demand letter before commencing enforcement action, giving the borrower an opportunity to remedy the default.
A Personal Loan Agreement can be signed electronically in Ghana under the Electronic Transactions Act 2008 (Act 772). Section 8 of Act 772 provides that where a law requires a signature, that requirement is met by an electronic signature that reliably identifies the signatory and indicates their approval of the relevant information. An electronically signed Personal Loan Agreement is legally valid and admissible as evidence before the High Court (Commercial Division) in Accra and the District Courts of Ghana under Section 7 of Act 772. Parties should use a reputable electronic signature platform that generates a reliable audit trail — including the date, time, IP address, and identity of each signatory — to protect against subsequent challenges to the authenticity of the signature. Where the loan is secured by a mortgage over land, note that the Land Act 2020 (Act 1036) requires registration at the Lands Commission, which may require a wet-ink signed mortgage instrument.
A Personal Loan Agreement between family members in Ghana is enforceable before the courts provided the agreement satisfies the general requirements of the Contracts Act 1960 (Act 25): offer, acceptance, consideration, capacity, and lawful object. The relationship between the parties — whether family, friends, or strangers — does not affect the legal enforceability of the contract. However, Ghanaian courts will scrutinise informal family arrangements carefully to determine whether there was genuine intention to create legal relations, and whether the terms of repayment were clearly agreed. A written Personal Loan Agreement recording the principal amount, interest rate, repayment schedule, and default consequences significantly strengthens the lender's position. Without a written agreement, the lender may face difficulty proving the terms of the loan before the High Court (Commercial Division) or a District Court. Family members are also advised to consider whether a gift or an interest-free loan would be more appropriate for small amounts, to avoid unnecessary legal formality and family tension.
The tax obligations arising from a personal loan in Ghana depend on whether the parties are individuals or businesses and on the nature of the interest payments. Under the Income Tax Act 2015 (Act 896), administered by the Ghana Revenue Authority (GRA), interest income earned by an individual lender from a personal loan may constitute investment income taxable at the applicable rate under the Act. Business entities lending money as part of a financial services business are taxed on interest income as trading income. The borrower's interest payments on a personal loan are not generally deductible as a business expense unless the loan is used in a business activity. Where the lender is a company providing loans to employees, the difference between the market interest rate and the rate charged may constitute a taxable employment benefit for the employee under Act 896. Parties to significant loan transactions should consult a tax adviser or accountant registered with the Institute of Chartered Accountants Ghana (ICAG) before execution to ensure compliance with the Income Tax Act 2015 (Act 896).
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
Found an error? Let us knowRelated Documents
You may also find these documents useful:
Demand Promissory Note (Ghana)
A Demand Promissory Note for Ghana under which the maker promises to pay a specified sum on demand to the payee, governed by the Bills of Exchange Act 1961 (Act 55), section 83.
Debt Settlement Agreement (Ghana)
A Debt Settlement Agreement for Ghana recording the full and final settlement of an outstanding debt obligation under the Contracts Act 1960 (Act 25), section 1, in exchange for a lump-sum payment.
Debt Acknowledgement Letter (Ghana)
A Debt Acknowledgement Letter for Ghana in which a debtor formally acknowledges an outstanding debt, the amount owed, and the agreed repayment terms, resetting the limitation period under the Limitation Act 1972 (Act 393) s.4.
Arbitration Agreement (Ghana)
An Arbitration Agreement for Ghana establishing binding arbitration as the method for resolving disputes under the Alternative Dispute Resolution Act 2010 (Act 798), with reference to the Ghana Arbitration Centre and UNCITRAL procedural rules.
Business Demand Letter (Ghana)
A Business Demand Letter for Ghana requiring a counterparty to perform a contractual obligation or remedy a breach before legal proceedings are commenced under the High Court (Civil Procedure) Rules 2004 (C.I. 47), Order 2.