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Calculating bank interest in Dubai

Calculation of the amount of interest on a personal loan, a car loan, an overdraft account or an unsettled credit card balance is subject to the following equation approved by the UAE Central Bank:

Amount of interest = Original loan X interest rate X loan duration (in months) + 1] divided by 2 X 100 X 12.
It is prohibited to deduct part of the loan in advance as a due interest amount. The bank should also calculate the amount of the interest and then deduct it from the agreed on monthly installment so that the original amount will be used to reduce the balance of the loan at the beginning of every month.

Computation of bank interest for personal loans as per Article (6)- Central Bank Regulations. (See page 7 of pdf download)
Personal loan calculator - Arab Bank
Personal loan calculator - Citibank
Personal loan calculator - HSBC
Personal loan calculator - RAKBANK

 

Published Date : 09/10/2012Back


Life Events Top Category

Citizens; Residents

Individual Life Events

Dealing with banks in Dubai

Sublife Event Title

Calculating bank interest in Dubai

Life Events Supporting Partners

Central Bank of UAE

Rank

6

Published Date

06/06/2011

ExpiryDate

06/06/2017

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0

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Calculation of the amount of interest on a personal loan, a car loan, an overdraft account or an unsettled credit card balance is subject to the following equation approved by the UAE Central Bank:

Amount of interest = Original loan X interest rate X loan duration (in months) + 1] divided by 2 X 100 X 12.
It is prohibited to deduct part of the loan in advance as a due interest amount. The bank should also calculate the amount of the interest and then deduct it from the agreed on monthly installment so that the original amount will be used to reduce the balance of the loan at the beginning of every month.

Computation of bank interest for personal loans as per Article (6)- Central Bank Regulations. (See page 7 of pdf download)
Personal loan calculator - Arab Bank
Personal loan calculator - Citibank
Personal loan calculator - HSBC
Personal loan calculator - RAKBANK

 

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Related Government Entity

Central Bank of the UAE; Emirates Competitive Council

Related Topics

Regulations regarding bank loans & other services offered to individual customers – Central Bank (pdf download); Lodging a complaint with Central Bank; Corporate governance guidelines for UAE Bank directors – Central Bank; Shareholding ownership of UAE Banks – Central Bank; Tele-marketing of financial products banned in UAE - Gulf News; Pesky telemarketing calls by banks banned; Shareholding ownership of UAE exchange houses – Central Bank

Related Private Links

All commercial banks in UAE; All investment banks in UAE; All financial investment companies in UAE; All finance companies in UAE; Representative offices of foreign banks in UAE

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AlertUpdateDate

09/10/2012

AlertNewDate

06/06/2011

TopCategory:TopCategoryArabic

للمواطنين; المقيمون

TopCategory:TopCategoryEnglish

Citizens; Residents

ArticleCategory:CategoryArabic

التعامل مع القطاع المصرفي في دبي

ArticleCategory:CategoryRank

1

ArticleCategory:CategoryIconURL

/Article%20Category%20Icons/cr_comm_dealing_with_banks.jpg

ArticleCategory:CategoryEnglish

Dealing with banks in Dubai

ArticleCategory:ShowOnHomePage

No

GovernmentEntity:ArabicURL

http://www.centralbank.ae/; http://www.ecc.ae/ar/index.aspx

GovernmentEntity:EnglishURLText

Central Bank of the UAE; Emirates Competitive Council

GovernmentEntity:EnglishURL

http://www.centralbank.ae/; http://www.ecc.ae/

GovernmentEntity:ArabicURLText

مصرف الإمارات العربية المتحدة المركزي; مجلس الإمارات للتنافسية

PrivateLinks:ArabicURLText

البنوك التجارية في دولة الإمارات; البنوك الاستثمارية في دولة الإمارات; شركات الاستثمار المالية في دولة الإمارات; شركات التمويل في دولة الإمارات; مكاتب تمثيل البنوك الأجنبية قي دولة الإمارات

PrivateLinks:ArabicURL

http://www.centralbank.ae/index.php?option=com_content&view=article&id=117&Itemid=97; http://www.centralbank.ae/pdf/bsed/Inv.Bank%20WSB%20FI%20Co.%20.list-%20Dec.%2009(EA).pdf; http://www.centralbank.ae/pdf/bsed/InvestmentcomlistDec2010.pdf; http://www.centralbank.ae/pdf/bsed/Fin.co.%20Dec.09.pdf; http://www.centralbank.ae/index.php?option=com_content&view=article&id=138&Itemid=104

PrivateLinks:EnglishURLText

All commercial banks in UAE; All investment banks in UAE; All financial investment companies in UAE; All finance companies in UAE; Representative offices of foreign banks in UAE

PrivateLinks:EnglishURL

http://www.centralbank.ae/en/index.php?option=com_content&view=article&id=149&Itemid=97; http://www.centralbank.ae/en/index.php?option=com_content&view=article&id=119&Itemid=98; http://www.centralbank.ae/en/index.php?option=com_content&view=article&id=139&Itemid=126; http://www.centralbank.ae/en/index.php?option=com_content&view=article&id=139&Itemid=126; http://www.centralbank.ae/en/index.php?option=com_content&view=article&id=138&Itemid=104

TopicLinks:EnglishURLText

Regulations regarding bank loans & other services offered to individual customers – Central Bank (pdf download); Lodging a complaint with Central Bank; Corporate governance guidelines for UAE Bank directors – Central Bank; Shareholding ownership of UAE Banks – Central Bank; Tele-marketing of financial products banned in UAE - Gulf News; Pesky telemarketing calls by banks banned; Shareholding ownership of UAE exchange houses – Central Bank

TopicLinks:EnglishURL

http://www.centralbank.ae/en/pdf/notices/RegulationsRegardingBankLoans.pdf; http://www.centralbank.ae/en/index.php?option=com_content&view=article&id=151&Itemid=123; http://www.centralbank.ae/en/pdf/Draft-CGGuidlines.pdf; http://www.centralbank.ae/en/pdf/ownership/bank's%20Ownership%20Structure.pdf; http://gulfnews.com/business/general/tele-marketing-of-financial-products-banned-in-uae-1.780869; http://www.emirates247.com/news/emirates/pesky-telemarketing-calls-by-banks-banned-2011-03-22-1.371486; http://www.centralbank.ae/en/pdf/ownership/Moneychangers%20ownership%20structure.pdf

TopicLinks:ArabicURLText

نظام القروض المصرفية والخدمات الأخرى المقدمة للعملاء الأفراد- مصرف الإمارات المركزي (نسق بي دي إف); تقديم شكوى إلى المصرف المركزي; الإرشادات الخاصة بحوكمة الشركات لمديري مصارف الإمارات - مصرف الإمارات المركزي; ملكية أسهم مصارف الإمارات- مصرف الإمارات المركزي; << المركزي>>: التضليل سبب منع التسويق الهاتفي للخدمات المصرفية - الإمارات اليوم; حظر الاتصالات المزعجة الخاصة بتسويق منتجات المصارف; ملكية أسهم شركات الصرافة في دولة الإمارات- مصرف الإمارات المركزي

TopicLinks:ArabicURL

http://www.centralbank.ae/en/pdf/notices/RegulationsRegardingBankLoans.pdf; http://www.centralbank.ae/index.php?option=com_content&view=article&id=144&Itemid=57; http://www.centralbank.ae/en/pdf/Draft-CGGuidlines.pdf; http://www.centralbank.ae/en/pdf/ownership/bank's%20Ownership%20Structure.pdf; http://www.emaratalyoum.com/business/local/2011-03-23-1.371815; http://www.emirates247.com/news/emirates/pesky-telemarketing-calls-by-banks-banned-2011-03-22-1.371486; http://www.centralbank.ae/en/pdf/ownership/Moneychangers%20ownership%20structure.pdf

ArticleSupDepart:ImageName

cr_comm_obtain_personal_loan

ArticleSupDepart:DepartmentURL

http://www.centralbank.ae/index.php

ArticleCategory:AdditionalTopCategory

Businesses

ArticleCategory:ID

1

ArticleCategory:RankCitizen

210

ArticleCategory:RankResidents

210

ArticleCategory:RankBusinesses

0

ArticleCategory:RankVisitors

0

ModificationDt

09/10/2012

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0

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Created at 06/06/2011 14:45 by Ali Developer
Last modified at 09/10/2012 09:05 by Aliasgar Khozem