A group of young entrepreneurs has created an online lending platform – Lending Square – where individuals and small businesses can access loans at lower interest rates.

The initiative means individuals and small scale businesses do not need to worry about the high interest rates of banks anymore when accessing capital.

Interest rates in the country are high. Individuals and businesses, especially SMEs are paying between 28 and 35 percent interests on loans they take from the universal banks.

Savings and loans companies on the other hand charge between 45 and 120 percent a year on the loans they grant to Small Scale Enterprises.

High-interest rates have been identified as one of the main stumbling blocks for start-ups and SMEs.

The online platform created by the group of young entrepreneurs is aimed at connecting lenders to borrowers at agreed interest rates which are below the ones charged by universal banks.

Lending Square’s CEO, Emmanuel Mbalam told Starr Business prospective lenders must be 21 years and above and must also have a minimum of Ghc6, 000 as an annual net worth.

To be a borrower on the same platform, Mbalam said “the most important thing is that you have to be a salaried worker” – whether in the private or public sector “because deductions are done primarily from your bank account”.