Personal loan calculator UAE: EMI, interest and real rate
Updated
How is a personal loan EMI calculated in the UAE?
The EMI — equated monthly instalment — is worked out on the reducing balance, as the Central Bank requires: EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), with P the amount, r the yearly rate ÷ 12 ÷ 100 and n the months. AED 100,000 over 48 months, the longest term allowed, at an example 6% a year is AED 2,348.50 a month and AED 12,728 in interest. If your offer quotes a flat rate, enter it as flat below: the calculator turns it into the real yearly rate and adds the processing fee.
| Rule | Limit |
|---|---|
| Most you can borrow | 20 × monthly salary (or total income) |
| Longest term | 48 months |
| All instalments together | at most 50% of gross salary and regular income (DBR) |
| How interest is charged | on the reducing balance, 365-day year |
Official rule: Banks must calculate interest on the reducing balance, using a 365-day year. (source, checked 2026-10-19)
3.49% flat over 48 months costs the same as 6.56% a year on what you actually owe.
- As a flat rate
- 3.49%
- True yearly cost incl. fees (APR)
- –
- Fees paid up front
- –
- Total interest
- AED 13,960
- Everything you repay
- AED 113,960
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.
Your exact EMI schedule — calculated like your bank
Banks count interest day by day on a 365-day year, from the day the loan is paid out. Enter your dates to get the same instalment and schedule as your bank — and see what skipping an instalment really costs.
Tick "Skip" next to any instalment to see what deferring it costs. UAE banks may allow up to two a year.
- Total interest
- –
- Everything you repay (incl. skip fees)
- –
Payment schedule
| # | Due date | Days | Instalment | Interest | Principal | Balance after | Skip |
|---|
What the Central Bank allows
A personal loan in the UAE can be at most 20 times your monthly salary and must be repaid within 48 months. All your instalments together — including credit cards and any car loan or mortgage — may not take more than 50% of your gross salary. The calculator checks all three once you enter your salary.
Compare offers on the true yearly cost
Two offers with the same rate can cost different amounts once the processing fee is included. The "true yearly cost incl. fees" line folds the fee into one rate, so you can put offers side by side.
Check the APR in your Key Facts Statement
Your bank must show an APR — the yearly cost including fees. Banks do not all calculate it the same way: some simply divide the fee by the number of years, which makes the APR look lower than it is, because you repay the loan month by month while the fee is paid up front. Enter the rate, the fee and the bank's APR above: if our figure is noticeably higher, use ours to compare offers. Planning to pay off early? See the early settlement calculator.
Questions people ask
What is EMI?
Equated monthly instalment — the fixed amount you pay each month. It covers that month's interest and part of the loan.
How do I calculate my loan payment?
You need three numbers: the loan amount, the yearly reducing rate and the number of months. The monthly payment is P × r × (1 + r)^n ÷ ((1 + r)^n − 1), with r the yearly rate ÷ 12 ÷ 100. AED 100,000 at 6% over 48 months gives AED 2,348.50 a month. If the bank quotes a flat rate, the formula does not apply directly: enter the flat rate in the calculator above and it works out the payment and the real yearly rate.
Is the processing fee included?
Enter it and the calculator folds it into the true yearly cost (APR), so offers with different fees can be compared fairly.
What are the rules of a personal loan?
In the UAE, under the Central Bank's regulation a personal loan may be at most 20 times your monthly salary, run for at most 48 months, and keep all your instalments within 50% of your gross salary and regular income. Interest must be charged on the reducing balance, and settling early costs at most 1% of the balance or AED 10,000 plus VAT.
What is the personal loan interest rate in the UAE?
In the UAE, each bank or finance company sets its own rate and must publish it; the Central Bank sets no maximum. It requires interest on the reducing balance and, where a bank advertises a flat rate, the equivalent reducing rate next to it: 3.49% flat over 48 months is 6.56% a year. Compare offers on the reducing rate and the APR with every fee — this calculator works out both.
What is the monthly instalment on a personal loan?
In the UAE, a personal loan instalment depends on the amount, the reducing rate and the term: AED 100,000 over 48 months — the longest the Central Bank allows — at an example 6% a year is AED 2,348.50 a month and AED 12,728 in interest. Enter your offer above for your own figure.
Can UAE nationals borrow for 60 months?
No: the Central Bank caps every personal loan at 48 months and 20 times the monthly salary, for UAE nationals and expats alike, and allows a longer period only when an existing loan is rescheduled in exceptional cases such as retirement or loss of income. On an AED 20,000 salary that means at most AED 400,000 over 48 months, with all your instalments together within 50% of your gross salary. Minimum salary and age limits (such as 60 or 65) are each bank's own policy; the Central Bank only requires a loan that runs past retirement to be rescheduled so repayments stay within 30% of the pension.