1. What is the Personal Loan Payment Formula?

The Personal Loan Payment (PMT) formula calculates the fixed monthly payment required to repay a loan over a specified term, including interest. This is the standard formula used by banks including Emirates NBD for personal loans in UAE dirhams.

2. How Does the Calculator Work?

The calculator uses the PMT formula:

Where:

• \( P \) — Principal loan amount (AED)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Number of monthly payments (loan term in months)
• \( PMT \) — Monthly payment amount (AED)

Explanation: The formula accounts for compound interest over the loan term, calculating a fixed payment that covers both principal and interest each month.

3. Importance of Loan Calculation

Details: Understanding your monthly payment helps with budgeting and comparing loan offers. It shows the true cost of borrowing by including interest charges.

4. Using the Calculator

Tips: Enter principal in AED, annual interest rate as a percentage (e.g., 5.99%), and loan term in months (typically 12-60 months for personal loans).

5. Frequently Asked Questions (FAQ)

Q1: What interest rates does Emirates NBD offer?
A: Rates vary based on credit profile, typically ranging from 5.99% to 19.99% APR for UAE residents.

Q2: Are there any fees not included in this calculation?
A: This calculates principal + interest only. There may be processing fees (typically 1% of loan amount) or insurance charges.

Q3: Can I pay off my loan early?
A: Emirates NBD allows early repayment, sometimes with a 1% early settlement fee. Check current terms.

Q4: What's the maximum loan amount I can get?
A: For UAE nationals, up to 20x salary; for expats, up to 15x salary, with minimum salary requirements.

Q5: How does salary transfer affect the rate?
A: Emirates NBD offers lower rates (typically 1-2% less) for customers who transfer their salary to the bank.