Free tool
Loan EMI calculator
UAE banks quote a loan two ways, and the flat number is always the smaller one for the same loan. Enter the quote you were given and see the instalment, the total interest, and the same loan expressed the other way.
The quote
As the bank gave it to you.
A flat rate charges interest on the full original amount every month, even as you repay it, which is why a 6.5 percent flat loan costs what a roughly 12 percent reducing loan costs. Ask which one the offer means before comparing anything.
What the loan costs
Monthly instalment
AED 1,313
That is the same as a reducing-balance rate of about 11.83% a year, which is the figure to compare with any other loan.
- Total repaid over the term
- AED 63,000
- Total interest
- AED 13,000
- Early-settlement fee cap at the start (1% or AED 10,000)
- AED 500
The instalment is rounded to the dirham and ignores processing fees and insurance, which the Key Facts Statement lists. Whether the instalment fits is a separate question: the debt burden ratio calculator answers that.
What a pre-approved loan SMS really meansHow this works
What it assumes
A reducing-balance instalment is the standard annuity formula; a flat instalment is the original amount plus interest on it for the whole term, spread evenly. The equivalent rate is the other quote that gives the same instalment. Everything is rounded to whole dirhams.
What it doesn't know
It does not know the processing fee, any insurance the bank adds, or whether you will be approved. The early-settlement figure is the Central Bank's ceiling, not a bank's actual charge, and it falls as the balance does.
An estimate, not advice
Hisab is an organisation and guidance tool. It is not a licensed financial adviser, debt broker, law firm, or government service. If your situation is urgent or legal, you should seek qualified professional advice.
This used the numbers you typed.
Hisab holds the real ones, every loan and card with its instalment, so a new quote is shown against the month before you sign. Free, no account.