What is the maximum tenure for personal loans in UAE?

According to UAE Central Bank regulations, the maximum repayment tenure for personal loans is 48 months (4 years), or 60 months for military personnel.

What is the early settlement fee in UAE?

UAE Central Bank caps early settlement fees for personal loans at 1% of the remaining balance or AED 10,000, whichever is less.

Money & Finance

Updated: November 2026

UAE Loan EMI Calculator

Calculate monthly loan installments (EMI), total interest, and amortization schedule for UAE personal or car loans.

Calculation Basis

Loan Amount (AED)

AED

Annual Interest Rate5.5%

UAE personal loans currently average 4.99%–7.5% reducing.

Repayment Tenure48 Months (4 Yrs)

*UAE Central Bank limits personal loan tenure to a strict 48-month maximum.

CBUAE Compliant

Estimated Monthly Installment (EMI)

AED 2,326 / month

Principal: AED 100,000 (90%)Interest: AED 11,631 (10%)

Total Amount Repayable:AED 111,631

Total Interest Cost:AED 11,631

Selected Rate Model:reducing Rate

CBUAE Early Settlement Cap: 1%

Calculation Methodology & Legal Basis

UAE banks advertise interest in two formats: Flat Rate and Reducing (Diminishing) Balance Rate. Standard loan EMI formulas utilize the reducing balance methodology: EMI = [P × r × (1+r)^n] / [(1+r)^n - 1], where P = principal, r = monthly interest rate, and n = tenure in months. Under UAE Central Bank regulations, the maximum personal loan tenure is 48 months (4 years), and car loan tenure is 60 months (5 years).

Worked Example

A loan of AED 100,000 at 5.5% reducing rate over 48 months yields an EMI of approximately AED 2,326 per month. Total interest paid is AED 11,632, bringing total repayment to AED 111,632.

Official Government & Regulatory Sources

Central Bank of the UAE (CBUAE) — Consumer Protection Regulations and Maximum Loan Tenure GuidelinesVisit Official Portal