What it means
A one-off fee a bank charges to set up a loan, usually a percentage of the amount borrowed.
Loans
Processing Fee
A one-off fee a bank charges to set up a loan, usually a percentage of the amount borrowed.
CategoryLoans
Pro tip inside1 quick win
What “Processing Fee” really means
The meaning, how it works in the UAE, and why it matters to your money.
How it works in the UAE
Banks may charge a one-off processing fee to set up a loan, usually a percentage of the amount borrowed, shown in the Key Facts Statement.
Why it matters
It adds to the real cost of the loan, so two loans with the same rate can cost different amounts.
PRO TIPAsk for the fee to be waived — banks often do during promotions.
Test yourself
Which of these best describes Processing Fee? Tap an answer.
Read more about Processing Fee
Guides that use this term — and a tool to put it into practice.
Loans
TRY THE TOOLPersonal loans in the UAE: what to compare before you sign
A low monthly instalment does not automatically mean a cheaper personal loan. Compare the total cost, tenure, fees and repayment terms before signing.
Personal loan EMI calculator
Run your own numbers and see how Processing Fee affects you.