UAE Investors · Advanced Tool

UAE Leverage Calculator

Model your FCNR(B) Loan Against Deposit (LAD) structure. Adjust deposit size, LTV, loan rate, and deployed return to compute effective yield, net carry, and break-even thresholds.

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FCNR(B) Deposit

Bank

Deposit Currency

Deposit AmountPrincipal amount of your FCNR(B) deposit in the selected currency.

USD 100,000.00

10,0002,000,000

FCNR(B) Interest RateIndicative annual interest rate offered by the selected bank on your deposit.

6.00% p.a.

Deposit TenureDuration of the FCNR(B) deposit. Minimum 1 year, maximum 5 years per RBI rules.

3 Years

UAE Loan Against Deposit

Loan-to-Value (LTV)Percentage of the deposit value the bank will lend against. Typically 80–90% for FCNR(B) LAD.

85%

5095

Loan Interest RateAnnual interest rate on the UAE LAD facility. Typically EIBOR or SOFR + spread. 3M EIBOR ≈ 4.85% as of Aug 2026; ICICI/SBI/BoB spreads are 1.00–1.75%, giving all-in rates of approximately 5.85–6.60%.

6.10% p.a.

312

Deployed Capital Return

Expected Return on Deployed CapitalAnnual return you expect to earn by deploying the loan proceeds (e.g. UAE real estate yield, business return).

9.00% p.a.

020

Break-even deployed return = 6.10%. You must earn above this rate for positive carry.

Structure Summary3-year horizon · USD 100,000 deposit

Effective Yield

8.47%

on original deposit p.a.

Yield Enhancement

+2.47%

vs plain FCNR(B) deposit

Net Carry (Annual)

USD 2,465.00

Positive carry ✓

Loan Amount

USD 85,000.00

85% LTV on deposit

Total Income

USD 25,395.00

Over 3 years

Margin of Safety

2.90%

Deployed return − loan rate

Annual Cash Flow Breakdown

Component	Annual	3-Year Total	Direction
FCNR(B) Deposit Interest	+USD 6,000.00	+USD 18,000.00	Income
Return on Deployed Capital	+USD 7,650.00	+USD 22,950.00	Income
Loan Interest Cost	USD -5,185.00	USD -15,555.00	Cost
Net Total Income	+USD 8,465.00	+USD 25,395.00	Net

Year-by-Year Projection

Year	Deposit Interest	Loan Cost	Deployed Return	Net Income	Cumulative
Year 1	+USD 6,000.00	−USD 5,185.00	+USD 7,650.00	+USD 8,465.00	USD 8,465.00
Year 2	+USD 6,000.00	−USD 5,185.00	+USD 7,650.00	+USD 8,465.00	USD 16,930.00
Year 3	+USD 6,000.00	−USD 5,185.00	+USD 7,650.00	+USD 8,465.00	USD 25,395.00

Risk Indicators

✓ Positive Carry

Deployed return exceeds loan cost by 2.90%.

✓ Conservative LTV

85% LTV leaves adequate buffer against margin calls.

✓ Adequate Buffer

2.90% spread between deployed return and loan rate.

All figures are illustrative estimates based on simple annual interest. Actual returns depend on compounding conventions, bank-specific terms, currency movements, and tax treatment. This calculator does not constitute financial advice. Consult a qualified advisor before structuring any leveraged position.

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