UAE car loan calculator

Flat rate versus reducing rate

A flat rate charges interest on the full loan for the whole term, even though you repay a slice every month. A reducing rate (the APR) charges interest only on what you still owe. That is why a 3% flat car loan really costs close to 5.6% a year.

To compare offers fairly, always compare reducing rates. The UAE Central Bank requires banks to show the reducing rate too, so ask for it.

UAE lending limits

• Car loans: up to 80% of the car's value, over at most 5 years.
• Personal loans: up to 20 times your monthly salary, over at most 4 years.
• Early settlement: banks can charge at most 1% of the amount outstanding, capped at AED 10,000.

Questions people ask

How do I convert a flat rate to a reducing rate?

Roughly multiply by 1.8 to 1.9 for typical 3 to 5 year loans. The calculator above gives the exact figure for your term.

What down payment do I need for a car in the UAE?

At least 20%, because banks can lend up to 80% of the car's value.

Can I pay off my car loan early?

Yes. The early settlement fee is capped at 1% of the outstanding amount, up to AED 10,000.

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