UAE Loan EMI
Calculator

EMI uses the standard reducing-balance formula: EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r the monthly interest rate, and n the number of monthly instalments. This calculator applies that formula, which is how UAE banks compute instalments on reducing-rate loans.

A flat rate charges interest on the original loan amount for the whole tenure, while a reducing rate charges interest only on the outstanding balance. UAE car and personal loans are often advertised at flat rates that look low — a 3% flat rate roughly equals a 5.5–6% reducing rate. Always compare loans using the reducing rate or APR.

The UAE Central Bank caps the debt burden ratio at 50% — your total monthly loan and credit-card instalments cannot exceed half of your monthly income. Banks apply this cap when approving any new loan, so a new EMI that pushes you past 50% will typically be declined or resized.

Personal loans in the UAE are capped at 48 months (4 years) by Central Bank rules, and the loan amount is generally limited to 20 times monthly salary. Car loans usually run up to 60 months, while mortgages can extend to 25 years subject to age limits at maturity.

Minimum salary requirements vary by bank and product: personal loans commonly start around AED 5,000–8,000 per month, car loans from about AED 5,000, and mortgages typically from AED 10,000–15,000. Salary-transfer loans usually get better rates than non-transfer ones.

Yes. Early settlement is allowed, with fees capped by the Central Bank — typically 1% of the outstanding balance (capped at AED 10,000) for personal and car loans. Mortgages follow similar early-settlement caps. Partial prepayments can significantly cut total interest on reducing-rate loans.