1. What is the Loan Eligibility Calculator?

This calculator determines the maximum loan amount you may be eligible for based on your affordable monthly payment, interest rate, and loan term. It's specifically designed for UAE bank personal loan standards.

2. How Does the Calculator Work?

The calculator uses the loan eligibility formula:

Where:

• \( P \) — Maximum loan amount (AED)
• \( PMT \) — Affordable monthly payment (AED)
• \( r \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( n \) — Loan term in months

Explanation: The formula calculates the present value of a series of future payments (annuity) to determine the maximum loan amount you can afford.

3. Importance of Loan Eligibility Calculation

Details: Knowing your maximum eligible loan amount helps in financial planning and ensures you don't overextend yourself with debt payments.

4. Using the Calculator

Tips: Enter your comfortable monthly payment amount, the bank's annual interest rate, and your desired loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical interest rate in UAE banks?
A: Personal loan rates in UAE typically range from 5% to 20% APR depending on your salary, employer, and credit history.

Q2: How do banks determine loan eligibility?
A: Banks consider your monthly income, existing debts, credit score, and employment status along with this calculation.

Q3: What loan terms are available in UAE?
A: Most UAE banks offer personal loan terms from 12 to 48 months, with some extending up to 60 months.

Q4: Are there any hidden charges?
A: UAE banks may charge processing fees (1-2% of loan amount), early settlement fees, and insurance premiums.

Q5: What salary is needed for personal loans in UAE?
A: Most banks require minimum salary of AED 5,000-8,000 for expats and AED 3,000-5,000 for UAE nationals.