What does an instalment plan on your card really cost?
An instalment plan splits a purchase or part of your balance into fixed monthly payments. A 0% plan usually carries a processing fee, such as AED 51.45 at Emirates NBD or 1.58% to 2.10% of the purchase at RAKBANK for 9 and 12 months, and closing it early costs extra.
An instalment plan turns a purchase, or part of what you owe, into equal monthly payments over a fixed term. Banks call them easy payment plans, instalment payment plans or flexi plans. The rate may be 0%, but the plan still has a price.
What fees do banks publish for instalment plans?
| Bank | Rate or processing fee | Closing the plan early |
|---|---|---|
| ADCB | AED 52.50 processing on 0% plans at participating merchants; up to 3.69% a month on other plans | AED 210 |
| Commercial Bank of Dubai | Processing fee up to 9.45% of the purchase on easy payment plans | 1.05% of the outstanding or AED 105, whichever is higher |
| Emirates NBD | AED 51.45 per 0% plan; up to 5% processing on other 0% bookings; 0.29% to 1.99% flat a month on interest-bearing plans | 1.05% of the principal outstanding |
| First Abu Dhabi Bank | Up to 4% fee plus up to 2.75% a month on the principal (Easy Buys); up to AED 262.50 to defer a plan | 1.05% or AED 10,500, whichever is lower |
| HSBC | 0% to 29.88% a year, reducing; 2.10% fee on education purchases only | AED 0 |
| RAKBANK | AED 51.45 for 3 or 6 months, 1.58% for 9 months, 2.10% for 12 months at participating merchants | AED 261.45 plus the current month’s interest |
The charges are from each bank’s own document.1234567
How do the payments fit into your card?
The monthly instalment becomes part of your minimum payment. Emirates NBD lists instalments among the amounts added in full to the minimum.4 Its key facts statement shows an AED 10,000 plan over 12 months at 24% a year: nothing is due on the first statement, then the second statement bills the first instalment of AED 964.14, which includes two months’ interest of AED 200 each.4
The plan also uses your credit limit until it is repaid, and missing the minimum still triggers the late fee.4
What must the bank tell you before you agree?
How the rate is calculated and whether it is flat or reducing. Central Bank standards require banks to disclose whether a rate is fixed or variable and the method of calculation, and to explain all fees, whether each is one-off or recurring.8 A bank that advertises a flat rate must show the equivalent effective rate beside it.9
Ask for the processing fee, the rate and the early closure fee in writing, then run the numbers in the balance transfer calculator, which works for any plan.
The small print
- Rate and fee disclosure are Consumer Protection Standards clauses 2.1.1.35, 2.1.1.37 and 2.1.1.38.8
- Emirates NBD charges plan interest at up to 3.46% reducing a month, up to 41.52% a year, and one-time processing fees of up to 5% on 0% bookings.4
- Mashreq lists balance transfer and Easy Cash plan fees and interest as “As communicated at the point of sale”. Settling one of those early costs AED 105; cancelling an instalment plan early costs AED 262.50.1011
Sources
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1Abu Dhabi Commercial Bank, Schedule of Fees. Effective 1 Sept 2026. Last checked 12 Nov 2026. Source document: Schedule of Fees
2Commercial Bank of Dubai, Credit Card Schedule of Charges. Last checked 12 Nov 2026. Source document: Credit Card Schedule of Charges
3Emirates NBD, Credit Card Services and Price Guide, February 2026. Last checked 12 Nov 2026. Source document: Credit Card Services and Price Guide
4Emirates NBD, Key Facts Statement, Credit Cards, Effective 1 March 2026. Last checked 12 Nov 2026. Source document: Key Facts Statement, Credit Cards
5First Abu Dhabi Bank, Conventional Cards Key Facts Statement, September 2026. Last checked 12 Nov 2026. Source document: Conventional Cards Key Facts Statement
6HSBC Bank Middle East Limited, UAE Schedule of Services and Tariffs. Effective 26 Oct 2026. Last checked 12 Nov 2026. Source document: UAE Schedule of Services and Tariffs
7RAKBANK, Consumer Credit Card Service and Price Guide. Effective 13 May 2025. Last checked 12 Nov 2026. Source document: Consumer Credit Card Service and Price Guide
8Central Bank of the UAE, Consumer Protection Standards, Notice 1158/2021, in force. Last checked 12 Nov 2026. Source document: Consumer Protection Standards
9Central Bank of the UAE, Regulation No. 29/2011 Regarding Bank Loans and Other Services Offered to Individual Customers, with Notice 2901/2011 clarifications. Effective 23 Mar 2011. Last checked 12 Nov 2026. Source document: Regulation No. 29/2011 Regarding Bank Loans and Other Services Offered to Individual Customers, with Notice 2901/2011 clarifications
10Mashreq, Schedule of Charges, Credit Cards. Last checked 12 Nov 2026. Source document: Schedule of Charges, Credit Cards
11Mashreq, Mashreq Cards Key Facts Statement, VA080526. Last checked 12 Nov 2026. Source document: Mashreq Cards Key Facts Statement
- Owner
- Comparecreditcards.ae research team
- Last review
- Next review due
- 11 May 2027
- Status
- Published