The North Tema Cooperative Credit Union Limited (NTCCU) has recorded a 20% loan delinquency rate. This figure is significantly above the industry benchmark of 3%. The union is now implementing stricter loan recovery measures to protect its members' deposits.
These new measures include mandatory collateral for selected loan facilities. NTCCU will also integrate with the Credit Reference Bureau to screen prospective borrowers. Legal action will be pursued against persistent loan defaulters to ensure repayment.
This high delinquency rate poses a significant challenge for credit unions in Ghana. It impacts their ability to lend and grow. The broader Ghanaian financial sector often grapples with loan defaults, especially among microfinance institutions. This situation could affect the stability of smaller financial entities.
Ms. Anthea Ohene Mayne, Chairperson of the Board of Directors, disclosed this at the union’s 37th Annual General Meeting (AGM) in Tema. She stated the rising default rate is a major concern. It makes it increasingly difficult for the cooperative to recover loans advanced to members. Ms. Mayne emphasized that many members are not repaying their loans. The cooperative is unhappy with this high delinquency rate.
The union aims to reduce the delinquency rate to 10%. This will be achieved through enhanced credit assessment and closer loan monitoring. Stricter recovery measures will also contribute to this goal. The success of these measures will be crucial for the union's financial health.
Despite the loan delinquency challenge, the cooperative recorded strong financial growth in 2025. This growth was driven by increased membership and improved savings mobilization. Membership grew by 30.2%, rising from 18,900 in 2024 to 24,604 in 2025. Total assets increased by 28.6% from GHS 111.29 million to GHS 143.08 million. Members’ deposits rose by 27.5% from GHS 85.65 million to GHS 109.23 million. Share capital also recorded significant growth of 83.89% to GHS 7.7 million during the review period.
The Board noted that members’ shares account for only 5.4% of total assets. This is below the regulatory requirement of 10%. To address this shortfall, the union introduced a policy. Under this policy, 0.5% of every newly approved loan will automatically be credited to the borrower’s share account. This aims to boost the share capital. The cooperative disbursed 4,733 loans valued at GHS 74.7 million in 2025. This represents a 55.7% increase over the previous year. For 2026, the union aims to disburse 7,053 loans worth GHS 133.4 million. This target will be supported by new loan products, including corporate, project, funeral, and moving loans. The AGM theme was “Growing Together Through Innovation and Technology.” The Board reaffirmed its commitment to digital transformation. This will enhance service delivery, improve operational efficiency, and strengthen transaction security.