Early settlement calculator (UAE): car, personal and home loans
Updated
What is the most a UAE bank can charge to settle early?
Personal and home loans: at most 1% of the outstanding balance or AED 10,000, whichever is less, plus 5% VAT — so never more than 1.05% or AED 10,500. Car loans: 1% of the balance plus VAT with no AED ceiling, so settling AED 60,000 early costs AED 630. During a mortgage's fixed-rate period the bank may charge its actual cost of breaking the fixed rate instead, and Islamic finance must give a rebate that keeps you within the same caps.
| Outstanding balance | Personal or home loan | Car loan |
|---|---|---|
| AED 50,000 | AED 525 | AED 525 |
| AED 100,000 | AED 1,050 | AED 1,050 |
| AED 200,000 | AED 2,100 | AED 2,100 |
| AED 1,000,000 | AED 10,500 | — |
| AED 2,000,000 | AED 10,500 | — |
Official rule: Cap for early/partial settlement fees on personal and home loans. (source, checked 2026-10-19)
UAE banks may charge at most 1% of the outstanding balance or AED 10,000 (whichever is less, plus VAT) to settle a home or personal loan early — car loans 1% of the balance. Here is what you save.
Not a valid document. Estimate for information only — not financial advice, not an offer of credit and not a bank document. Errors are possible. Only your bank's or finance company's official offer letter, contract and statements are binding.
Finish earlier or pay less?
After a partial payment you can usually keep the same instalment and finish earlier (more interest saved) or keep the end date with a lower instalment (more breathing room each month). Fees and the fixed-rate exception are explained in early settlement fees in the UAE.
Questions people ask
How much does it cost to settle a loan early?
In the UAE the Central Bank caps it: 1% of what you still owe or AED 10,000, whichever is less, for personal and home loans, and 1% for car loans, plus 5% VAT. AED 100,000 left on a personal loan costs at most AED 1,050 to settle.
Is it good to settle a personal loan early?
Settling a UAE personal loan early usually pays, when the interest you no longer pay is larger than the fee. Example: AED 100,000 left at an example 7% over 36 months still carries about AED 11,158 of interest, against a settlement fee of at most AED 1,050. Keep an emergency fund first, and ask your bank for a written settlement figure.