FAB Personal Loan Fees Explained — Processing, Insurance, Early Settlement
You’re about to take a FAB personal loan. The rate looks good. The monthly payment fits your budget. But then you see the fees—processing fee, insurance, early settlement, late payment. Suddenly the loan costs more than you thought.
Here’s the truth: FAB’s fees are regulated by the Central Bank of the UAE. They’re not hidden, but they’re also not always explained clearly. This guide breaks down every fee you’ll pay—the exact amounts, when they’re charged, and how to avoid unnecessary costs.
Safety Note: UAEfinbiz is an informational guide only and does not have access to your FAB account or personal information. Never share your Emirates ID, salary certificate, bank statements, or OTP with any third-party website or individual claiming to process loans. Always apply directly through official FAB channels. For verified information, visit the official FAB website at www.bankfab.com. Verify all terms, rates, and fees directly with FAB before signing any agreement.
FAB Personal Loan Fees at a Glance
Processing Fee — What You Pay Upfront
FAB charges a one-time processing fee of 1.05% of your loan amount. This fee is charged upfront — before the loan is disbursed.
The math:
Examples:
| Loan Amount | Processing Fee (1.05%) | Actual Fee Charged |
|---|---|---|
| AED 50,000 | AED 525 | AED 525 (minimum applies) |
| AED 100,000 | AED 1,050 | AED 1,050 |
| AED 250,000 | AED 2,625 | AED 2,625 (maximum applies) |
| AED 500,000 | AED 5,250 | AED 2,625 (capped) |
What this means: The fee is capped at AED 2,625. If you’re borrowing more than AED 250,000, the fee doesn’t increase beyond that cap. For smaller loans, the AED 525 minimum applies.
Life Insurance — Mandatory Cover
FAB requires life insurance on all personal loans. You’re automatically included under the FAB Personal Loans Group Insurance Policy .
What it covers:
- 100% of the loan outstanding balance in case of death or total permanent disability
- 24-hour coverage, anywhere in the world
How it’s charged — two options:
| Option | Rate | When Charged |
|---|---|---|
| Upfront | 1% – 1.5% of approved loan amount | At loan disbursement, non-refundable |
| Monthly | 0.0169% – 0.0171% of monthly outstanding balance | Added to your monthly payment |
Example (monthly option): If your outstanding balance is AED 100,000, the monthly insurance fee would be approximately AED 16.90 to AED 17.10. This decreases as you pay down the loan.
Important: The insurance fee is non-refundable, even if you settle the loan early .
Early Settlement Fee — If You Pay Off Early
If you decide to pay off your FAB personal loan before the tenure ends, FAB charges an early settlement fee.
The amount: 1.05% of the outstanding balance, capped at AED 10,500
Example: If you have AED 150,000 remaining and want to settle early, the fee would be AED 1,575. If you have AED 1,000,000 remaining, the fee would be capped at AED 10,500.
The regulation: The Central Bank of the UAE caps early settlement fees at 1% of the outstanding balance or AED 10,000, whichever is lower. FAB’s fee of 1.05% (capped at AED 10,500) is slightly above this, but within the bank’s contractual terms .
What this means for you: If you’re planning to pay off your loan early, factor in this fee. It reduces the savings from early settlement.
Late Payment — What Happens If You Miss a Payment
If you don’t meet your monthly repayment, FAB will:
- Classify your account as in arrears
- Apply late payment penalties
- Report the missed payment to the Al Etihad Credit Bureau (AECB)
- Potentially limit your ability to access financing in the future
The exact late payment fee is not specified in the FAB key facts statements, but it’s typically a fixed amount plus interest. Contact FAB directly for the current late payment fee.
Instalment Deferment — Free but Costs You More
FAB allows you to defer up to two loan instalments per year, subject to bank policy .
The catch: Interest continues to accrue during the deferment period. This may:
The fee: Free to defer, but the additional interest costs you more over the life of the loan.
Total Cost Example — AED 250,000 Loan
Let’s calculate the total fees for a AED 250,000 loan over 48 months at 3.99% fixed:
The fees add approximately AED 5,125 to AED 6,375 on top of the loan and interest.
Frequently Asked Questions
What is the processing fee for a FAB personal loan?
FAB charges a one-time processing fee of 1.05% of the loan amount. The minimum is AED 525 and the maximum is AED 2,625. VAT is included in this amount.
Is life insurance mandatory for FAB personal loans?
Yes. Life insurance cover is mandatory with FAB personal loans. You are automatically included under the FAB Personal Loans Group Insurance Policy. It covers 100% of the loan outstanding balance in case of death or total permanent disability.
How much is the early settlement fee for FAB personal loans?
The early settlement fee is 1.05% of the outstanding balance, capped at AED 10,500.
Can I avoid the processing fee?
The processing fee is standard for all FAB personal loans. It is charged upfront and is non-refundable. Some promotional offers may waive or reduce the fee, but this is not guaranteed.
What happens if I miss a payment?
Your account will go into arrears. Late payment penalties apply, and the missed payment is reported to the Al Etihad Credit Bureau. This may affect your credit rating and limit your ability to access financing in the future.
Is instalment deferment free?
Yes, deferring an instalment is free. However, interest continues to accrue during the deferment period, which may extend your loan maturity date or increase your final instalment amount.
What is the total cost of a FAB personal loan?
The total cost includes the loan amount, interest, processing fee (1.05% capped at AED 2,625), and life insurance (1% – 1.5% upfront or 0.0169% monthly). Use our Loan EMI Calculator to estimate your monthly payment.
Can I get a discount on FAB personal loan fees?
FAB occasionally runs promotional offers with reduced or waived fees. Check the FAB website or speak to a FAB representative for current promotions.
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- FAB Personal Loan UAE — Complete Guide (Rates, Eligibility, Documents)
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- FAB Non-Listed Company Personal Loan — Apply Without Employer Approval
- FAB Islamic Personal Finance — Sharia-Compliant Loan Guide
- FAB Buyout Loan — Transfer Debt from Another Bank
- Loan EMI Calculator UAE — Personal Loan Monthly Payment
