The central bank has advised the borrowing public not to pay fees and charges on loans that were not disclosed to them prior to the signing of the agreement.
The central bank said such charges were null and void and must not be bore by borrowers.
The BoG said borrowers that pay such amounts were entitled to refunds.
They could also lodge complaints at BoG against their lending institutions for redress, the central bank said in the notice issued by its Secretary, Sandra Thompson.
It also advised the public to compare the interest rates of their financial institutions with those of other lenders in making the decision on where to apply for a loan.
BoG said the notice was in line with its mandate to promote transparency and effective disclosure practices in the financial sector.
It also urged the public to critically assess their capacity for the loans, including making sure that they are capable of repaying prior to obtaining a loan facility.
“Borrowers are advised not to rush to acquire loans. Where possible, they may obtain and compare offers from multiple lenders before deciding on the best deal,” the notice said.
In recent times, the bank has stepped up efforts to educate the general public on financial transactions to help deepen financial literacy as well as discourage unfair practices by banks and specialised deposit-taking institutions, which it regulates.
