UAE Loan Early Settlement Calculator Widget

See the maximum fee a UAE bank may charge for paying off a personal or home loan early - 1% of the outstanding balance or AED 10,000, whichever is less - the settlement amount, and how much the remaining instalments would otherwise have cost.

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<iframe src="https://a2z.tools/embed/w/uae-loan-early-settlement-calculator" title="UAE Loan Early Settlement Calculator by A2Z Tools" width="100%" height="720" style="border:0;width:100%" loading="lazy" allow="clipboard-write"></iframe>

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How it works

The Central Bank's regulations on bank loans to individuals limit the early settlement fee to 1% of the outstanding balance, with a ceiling of AED 10,000. The widget applies both and shows which one decided the figure: below a balance of AED 1,000,000 the 1% applies, above it the AED 10,000 cap does. Add the monthly instalment and the number of instalments left and it also shows what those instalments would have cost in total, so you can see the interest or profit avoided after the fee. Interest accrued since the last instalment is added by the bank on the day and is not included.

Calculation method

  • Maximum fee = min(1% x outstanding balance, AED 10,000)
  • Settlement amount = balance + fee (accrued interest excluded)
  • Saved = instalment x instalments left - balance - fee

Worked examples

Under the cap

Inputs: Balance AED 500,000

Result: Maximum fee AED 5,000 (1%)

Cap applies

Inputs: Balance AED 2,000,000

Result: Maximum fee AED 10,000 (cap)

Home loan

Inputs: Mortgage balance AED 1,800,000

Result: Maximum fee AED 10,000 (the cap; 1% would be 18,000)

Small personal loan

Inputs: Balance AED 40,000

Result: Maximum fee AED 400 (1%)

The regulatory ceiling, not your bank's quote.

Limitations

  • Shows the regulatory maximum; the bank's actual fee may be lower.
  • Accrued interest and any third-party charges are added by the bank.
  • Car loans are not covered by the AED 10,000 ceiling; their settlement terms are in the finance agreement.
  • Accrued interest or profit between instalment dates is not computed; the dated settlement figure from the bank is authoritative.

Where publishers use it

  • A refinancing broker's page comparing a buy-out with staying put
  • A personal finance blog on paying off loans with a bonus
  • A bank's FAQ on early settlement charges
  • An Arabic consumer-rights guide
  • A bonus-season article on using a year-end windfall or lump sum to clear debt
  • An end-of-service guide on clearing a loan with a gratuity payout before leaving the country
  • A relocation firm's departure checklist covering loan clearance before an employee leaves the Emirates
  • A property-sale guide showing how sale proceeds can clear an outstanding mortgage
  • An inheritance or windfall planning article weighing settlement against investing
  • A Dubai Marina tenant clearing a car loan before relocating
  • An Abu Dhabi employee using an annual bonus to settle a personal loan

Questions

How much is the early settlement fee in the UAE?

At most 1% of the outstanding balance or AED 10,000, whichever is less, under the Central Bank's regulations. A bank may charge less.

When does the AED 10,000 cap apply?

When 1% of the balance is more than AED 10,000, that is for balances above AED 1,000,000.

Does the cap apply to mortgages?

Yes. The same ceiling applies to home loans as to personal loans.

Is accrued interest included?

No. The bank adds the interest or profit accrued since the last instalment when it gives you the settlement figure.

Is paying off a loan early worth it?

Usually, when many instalments remain: on a AED 350,000 balance repaid at AED 8,000 a month for 48 more months, settling now costs the balance plus at most AED 3,500, against AED 384,000 of remaining instalments.

What about moving a loan to another bank?

A buyout by another bank is an early settlement for the first bank, so the same cap applies; ask the new bank whether it covers the fee and compare the total cost, not just the rate.

What should I ask the bank for before settling?

A written settlement figure valid to a stated date, showing the outstanding balance, any accrued interest or profit, and the fee - so the fee can be checked against the ceiling of 1% or AED 10,000.

Do I need a liability letter before clearing a loan early?

Yes. Ask the bank for a liability or settlement letter showing the outstanding principal and fee on the settlement date; after payment, request a clearance (no-liability) letter and, for a car, the release of the RTA mortgage on the Mulkiya.

Rules and official sources

Every legal or regulatory figure this widget uses is listed here, with the official page it was read from. The widget reads them from A2Z's rule file for United Arab Emirates; when a rule changes, the widget changes with it.

RuleOfficial sourceIn force fromLast verifiedNext review
Early settlement fee cap
At most 1% of the outstanding balance or AED 10,000, whichever is less. 		Regulations re Bank Loans and Other Services to Individual Customers (Notice 29/2011)
Central Bank of the UAE (Rulebook) - Fee appendix		 Not stated on the source 6 Oct 2026 4 Apr 2027

Sources

  1. Regulations re Bank Loans and Other Services to Individual Customers (Notice 29/2011) - Central Bank of the UAE (Rulebook) . Fee appendix. Verified 2026-10-06.

Cite or recommend this tool

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A2Z Tools UAE Loan Early Settlement Calculator
https://a2z.tools/embed/uae-loan-early-settlement-calculator

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