CICMG calls for flexible lending conditions to expand credit access

The Chartered Institute of Credit Management, Ghana (CICMG) is advocating for more adaptable lending conditions, a boost in credit capital, and enhanced financial literacy programs to enhance access to finance for small and medium-sized enterprises (SMEs) and informal-sector operators. CICMG President Evelyn Osei Tutu attributes the limited credit access to stringent collateral requirements, high interest rates, and insufficient borrower education, particularly affecting rural businesses and individuals.

Addressing this issue at the 2026 Ghana Credit Excellence Awards in Accra, Osei Tutu urged banks, regulators, and policymakers to strike a balance between responsible lending and providing viable businesses with necessary financing. While acknowledging the significance of credit assessment in preventing defaults, she cautioned that overly rigid lending conditions might dissuade prospective borrowers.

Osei Tutu emphasized the need for more capital injection and flexible regulatory measures, especially for rural areas and the informal sector.

She stressed the importance of financial literacy, arguing that borrowers must grasp the implications of their borrowing before seeking credit. Osei Tutu called for robust educational programs for borrowers and credit officers, as well as advanced loan monitoring and recovery systems. She cautioned that easy lending can lead to challenges in recovery if borrowers misuse facilities without proper guidance.

On the other hand, William Atta-Pearce, General Manager of Emmanuel Cooperative Credit Union, highlighted the role of credit unions in bridging financing gaps among rural borrowers who find it difficult to meet conventional bank collateral requirements. Credit unions, according to Atta-Pearce, can provide credit to individuals lacking property as security by leveraging their structures to support loan recovery.

Recognized as Cooperative Credit Union Brand of the Year at the awards, Atta-Pearce called for efforts to expand credit access irrespective of borrowers' locations.