There are many reasons why you might be considering a loan – it could be that you are starting up a new life in the UAE, and need a loan for renovating your new home; or it could be that you have a delayed start to a new job and need help with bills in between; or maybe you want to consolidate existing loans.

Wanting to consolidate your debts is a popular move most people make at some point in their lives. As long as you are sensible and evaluate your finances first of all to make sure you can comfortably make the repayments, then consolidation can be a smart move and a lot less hassle than having separate loans.

First step: Deciding on an amount

You should already have some sort of idea in your head of the amount of loan you need. If you haven’t, then make a list of all the things you would want the loan amount to cover. Whether it’s for just one thing in particular, such as a repair; or for a list of different bills you need to cover (and say, which you can’t borrow from a friend or family member in time) then you should write them all down, research the costs for each and then add them up.

Second step: Choosing the time period

Most people overlook this part when they’re just struck by the urgency for a loan, but this is quite an important part of your loan decision. Thinking about a sensible amount of time you would like the loan amount spread out over allows you to prevent overstretching yourself, and only commit to paying your loan back across a length of time that accommodates your financial needs.

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If, for example, you know that you can only afford to pay your loan back at a low amount each month, then you can choose to spread your payments over a longer period. But you will have to accept that there is likely to be a higher interest rate doing it this way. However, if you wish to pay off your loan quickly – and can afford to do so – you can choose to have a shorter repayment period with higher instalments.

Inputting these into the loan calculator, it will automatically update the repayment amounts depending on the time period entered. You can simply then change to another time period to see how much you would need to pay back by altering this.

Third step: Identification and statements

When the time comes for you to sign up for a loan, you will need to provide the relevant bank with several forms of ID as well as proof of address and bank statements for the last 3 months. It is likely that one of the terms of the loan will be that you have a fixed basic monthly salary, which could be, for example, AED 5, 000.


Loan calculators are very useful tools for evaluating your finances for a loan in Dubai. However, always seek financial advice from an expert and make sure you’re in a position to make the repayments. How does a loan calculator work? A loan calculator is pretty useful in helping you make the decision over whether you can do it and what the bank will lend you and at what interest rate. The other bonus is that it is readily available online and is completely free to use.

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Founder and chief editor of Blogger, Affiliate Marketer, Tech and SEO geek. Started this blog in 2011 to help others learn how to work from home, make money online or anything related to business and finances. You can contact me at

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