Compare UAE bank personal loan offers: monthly payment, total cost and the true interest rate behind the flat-rate quote.
UAE banks quote personal loans as a flat rate, which understates the true cost. Enter the loan amount, term and up to three bank rates to compare monthly payments side by side — and see each flat rate converted to its equivalent reducing-balance rate, the number that lets you compare fairly.
Example: You borrow AED 50,000 for 4 years at 4.49% flat. Total repayable = 50,000 × (1 + 0.0449 × 4) = AED 58,980; monthly = AED 1,228.75; total interest = AED 8,980. The equivalent reducing-balance rate is about 8.3% p.a. — that is the figure to compare against reducing-rate quotes.
A flat rate charges interest on the full loan amount for the whole term. A reducing rate charges interest only on the remaining balance, so the same monthly payment implies a higher reducing rate — roughly 1.8× the flat rate for typical terms.
Flat rates look lower and make comparison shopping harder. Always convert to the reducing-balance equivalent before choosing.
No. UAE banks typically charge ~1% arrangement fee plus VAT. Add it to the loan amount for a truer comparison.
Usually yes, but banks may charge an early-settlement fee (often 1% of the remaining balance). Check your offer letter.
The UAE Central Bank caps personal loans at 48 months (4 years) for most borrowers.
