The Ghana Co-operative Pharmacists Credit Union (GCPCU) has reduced its loan interest rate from nearly 25 percent to 15 percent. This significant cut aims to improve members' access to affordable credit and strengthen their financial well-being.
Dr. Paul Owusu Donkor, Board Chairman of the Credit Union and President of the Pharmaceutical Society of Ghana, announced the decision. He made the announcement at the Union's Annual General Meeting (AGM) in Accra last Friday. This reduction is one of three major achievements reported by the Union during the past year.
This move by GCPCU aligns with broader efforts in Ghana to enhance financial inclusion and support specific professional groups. Credit unions play a vital role in providing financial services to segments often underserved by traditional banks. The reduction in lending rates can stimulate economic activity among pharmacists, fostering business growth and personal financial stability.
Dr. Donkor explained that the lower rate will ease the financial burden on members. He also stressed the importance of greater discipline in loan repayment. He highlighted the successful implementation of the SEEDS Project, which supported four young entrepreneurial pharmacists in establishing their own businesses. This initiative demonstrates the Credit Union's commitment to promoting entrepreneurship within the profession.
The reduction in interest rates is expected to encourage more members to utilize the Union's financial services. It could also attract new members seeking more favorable lending terms. This development is particularly relevant as Ghana's economy navigates various challenges, making affordable credit crucial for small and medium-sized enterprises and individuals.
Dr. Patience Tsegah, CEO of Unicom Chemists, described the Credit Union as more than just a financial institution. She noted it serves as a professional support system bridging the financing gap for pharmacists. She emphasized that financial wellness is critical for professional performance. Dr. Tsegah encouraged members to actively engage with the Credit Union.
Dr. Owusu Nyarko, representing the Chief Executive Officer of the Credit Union Association of Ghana (CUA), commended GCPCU's leadership. He praised its strong liquidity position and support for members' educational, business, and retirement needs. However, he expressed concern that the Credit Union's capital adequacy ratio stands at 18 percent. This is below the recommended 20 percent benchmark.
Dr. Nyarko urged members to increase their share capital and reduce loan defaults. He stated that honoring repayment obligations would ensure the Credit Union's continued growth and improved surplus. This would ultimately deliver even greater benefits to its members. The Union also expanded its mobile application to iOS users, allowing remote deposits and transactions.
The GCPCU has nearly 5,000 members, but about 1,367 have not attained the minimum GHS 500 shareholding. This minimum is required to qualify for dividend payments. Dr. Donkor urged members to increase their share capital to support the Union's continued growth and financial resilience. This collective effort is essential for maintaining the Union's stability and its capacity to offer competitive rates and services.