CICMG calls for flexible lending conditions to expand credit access

The Chartered Institute of Credit Management Ghana (CICMG) has urged financial institutions to adopt more flexible lending conditions to boost credit access for small and medium-sized enterprises (SMEs) and informal-sector operators. CICMG President Evelyn Osei Tutu pointed out that stringent collateral requirements, high interest rates, and insufficient borrower education are hindering credit availability, especially for businesses and individuals in rural communities.

During the 2026 Ghana Credit Excellence Awards in Accra, she called on banks, regulators, and policymakers to strike a balance between responsible lending and measures that facilitate access to financing. Osei Tutu acknowledged the significance of credit assessment in preventing defaults but cautioned that overly strict lending conditions might deter potential borrowers.

She emphasized the need for increased credit capital and more flexible lending conditions, particularly in rural areas and among the informal sector. Additionally, she stressed the importance of financial literacy programmes to enhance repayment rates, as borrowers must comprehend the implications of borrowing before seeking credit.

Osei Tutu advocated for stronger borrower and credit officer education, alongside enhanced loan monitoring and recovery systems, warning that inadequate guidance could lead to mismanagement of loans and potential losses for lenders. Meanwhile, William Atta-Pearce, General Manager of Emmanuel Cooperative Credit Union, highlighted the role of credit unions in addressing financing gaps among rural borrowers who find it challenging to meet conventional bank collateral requirements.

He noted that credit unions can provide credit access to individuals lacking property to use as security, relying on 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.