ADCB Personal Loan Early Settlement Fee in the UAE
Deciding to pay off your personal loan early with Abu Dhabi Commercial Bank (ADCB) can be a smart financial move, potentially saving you a significant amount in interest charges. However, this convenience comes with an Early Settlement Fee that you must understand to ensure you are actually saving money. In the UAE, this fee is strictly regulated, offering protection and clarity to borrowers.
ADCB’s Structure: ADCB’s specific fee structure for personal loans generally aligns with this Central Bank limit. As per their Schedule of Fees, the charge for fully or partially settling a personal loan is typically 1.05% of the settled amount (including VAT, where applicable), capped at AED 10,500 (to account for VAT on the AED 10,000 cap).
Paying off your ADCB Personal Loan early provides financial freedom and a better credit score. By knowing the cap imposed by the UAE Central Bank and understanding ADCB’s structure, you can confidently make the decision that benefits your financial future.