1. What is the Personal Loan Payment Formula?

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

2. How Does the Calculator Work?

The calculator uses the loan payment formula:

Where:

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

Explanation: The formula accounts for both principal repayment and interest charges, calculating a fixed payment that fully amortizes the loan over the term.

3. Importance of Loan Payment Calculation

Details: Understanding your monthly payment helps with budgeting and ensures the loan is affordable. It also helps compare different loan offers.

4. Using the Calculator

Tips: Enter the loan amount in AED, annual interest rate (as offered by Emirates NBD), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What interest rates does Emirates NBD offer?
A: Rates vary based on customer profile, loan amount, and term. Check with the bank for current offers.

Q2: Are there any other fees?
A: Emirates NBD may charge processing fees (typically 1% of loan amount) and early settlement fees.

Q3: What loan terms are available?
A: Emirates NBD typically offers personal loans from 1 to 4 years (12 to 48 months).

Q4: Can I pay off the loan early?
A: Yes, but early settlement fees may apply (1% of outstanding amount or AED 500, whichever is higher).

Q5: What is the maximum loan amount?
A: For UAE nationals, up to 20 times salary; for expats, up to 15 times salary, subject to bank approval.