In Ghana, lending transactions are primarily regulated by the
Borrowers and Lenders Act, 2020 (Act 1052). The Borrowers and
Lenders Act was enacted to regulate transactions between borrowers
and lenders, to establish a Collateral Registry, to promote a legal
framework for the registration and enforcement of security
interests in collateral, to establish an order of priority of
security interests and to provide for credit agreements generally,
and related matters.
Section 85 of the Act defines a borrower as a person who enters
into a credit agreement with a lender. The borrower has rights that
are provided and protected for under the law.
Firstly, a borrower must have a legal capacity to enter into a
contract before he or she can apply for credit. A lender may,
however, refuse to grant the credit to the borrower on grounds
consistent with the lender's own risk assessments and
underwriting. That being said, a borrower shall not be refused on
grounds such as gender,
