UAE Loan Calculator

Using the standard reducing-balance amortization formula: EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly installments. This is the same method banks use to calculate the actual installment on a reducing-rate personal loan — each payment is the same size, but a larger share goes toward interest early on and toward principal later.

Under CBUAE Regulation No. 29/2011 (Regarding Bank Loans & Other Services Offered to Individual Customers), as amended, total monthly deductions from salary or regular income across all loans and credit combined — personal loans, mortgage/housing loans, credit cards, and overdraft facilities together — must not exceed 50% of gross salary. For retirees and pensioners, the cap is lower, at 30%. A 2023 amendment allows banks to extend this to up to 60% for customers earning AED 40,000+/month specifically to absorb interest-rate increases, with the bank covering the uncovered portion of interest — it isn't a general relaxation of the standard cap.

Yes — this is an actual Central Bank rule, not just common bank practice. CBUAE regulation caps a personal consumer loan at 20 times the borrower's monthly salary or total income, and separately caps the standard repayment term at 48 months. Individual banks can still be more conservative than this ceiling based on your credit profile, employer, and existing commitments.

It's combined, not separate. The regulation caps total deductions across personal loans, mortgage/housing loans, credit cards, and overdraft facilities together against one single 50% (or 30%/60%) limit — it isn't a 50% allowance for personal loans plus a separate allowance for a mortgage. This is a common point of confusion, and the DBR checker above adds your existing obligations together with this loan's installment for exactly that reason.

A flat rate charges interest on the full original loan amount for the entire term, even as you pay down the balance — a reducing (or 'diminishing') rate charges interest only on what's actually still outstanding, so the interest amount shrinks each month as you pay it off. The two aren't directly comparable: a 4% flat rate typically costs roughly the same as a 7-8% reducing rate. As a rough rule of thumb quoted by UAE consumer-finance sources, multiply a flat rate by about 1.7-1.8× to estimate its reducing-rate equivalent for common short-to-medium tenors. Always ask a bank explicitly which method its quoted rate uses — advertised flat rates can look deceptively cheap.

As an illustrative range only: reducing-rate personal loans at major UAE banks commonly run from roughly 4-5% per year for strong salary-transfer profiles at the low end, up to the high teens or beyond for weaker profiles or unsecured/aggregator-sourced offers — with plenty of banks clustering around 5-9% for standard salaried applicants. Rates vary by bank, your salary, employer category, credit score (AECB report), and whether you transfer your salary to that bank — get a current quote rather than treating any single number as fixed.

No. This is an estimation tool for the math and the regulatory caps — it isn't a loan application, pre-approval, or offer, and it doesn't replace a bank's actual underwriting. Your real rate, fees, maximum amount, and approval depend on the specific bank's policies and your individual borrower profile (income, employer, credit history, existing debt). Confirm real numbers directly with a bank before treating any figure here as final.

Not quite — this tool is built for personal, auto, and other general consumer loans. Property financing runs under separate Central Bank mortgage rules (loan-to-value caps, different DBR treatment for first-time vs. subsequent buyers, Dubai Land Department fees, and so on). Use the UAE Mortgage Calculator for that math instead.