Business Loan Calculator: Repayments & Interest
"A reducing-balance business loan repayment is calculated from the principal, the monthly interest rate and the number of months. AED 500,000 over 60 months at 6% annual interest repays about AED 9,666 per month, with roughly AED 79,900 of total interest."
UAE Lending Notes
Flat rate vs reducing balance: UAE lenders often quote a flat rate, where interest is charged on the original principal throughout. A 6% flat rate costs close to double a 6% reducing-balance rate.
Arrangement and processing fees of 1% of the facility are common and are not included in the quoted rate.
Early settlement fees are usual. Check the cap before assuming you can refinance cheaply.
Frequently Asked Questions
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