How is My Lender in Dubai Calculating My Interest I Owe? – Maria

“Hi Jon,

I applied for a personal loan from Dunia Finance in 2014 amounting 35,000AED and my monthly due is 1,695AED. From what I remember I agreed to pay it within 30 months.

I don’t usually open the bank statements they are emailing me, but last month I checked and I am surprised to see that I still have 12,249.00AED remaining balance.

How could that be? How do they compute the interest? I hope you could help me analyze this.

Thank you for your time.

Best regards,


I understand your confusion, and interest rates can be a complicated process.

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Unfortunately I cannot fully answer your question without viewing a statement. Even then it may prove difficult.

Different banks and lenders can use different interest calculation methods.

Some may calculate the interest daily, or monthly.

With some loans you pay the interest first and then pay back the actual borrowed amount.

I would suggest you contact the bank in question and query this with them.



Jon Emge is an experienced UK debt advisor who has helped thousands and thousands of people in the UK to deal with problem debt. Jon specialises in finding good solutions for problem debt using a variety of UK specific techniques.

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