Zero-interest plans run for up to 24 months, but processing fees, eligibility rules varyLast updated: August 14, 2026 | 05:056 MIN READMost schools allow parents to pay fees by card without the transaction charges. Photo for illustrative purpose onlyDubai: UAE parents facing large school-fee payments this month can choose from a range of credit-card instalment facilities, but the cost, repayment period and eligibility rules differ sharply between banks.Get updated faster and for FREE: Download the Gulf News app now - simply click here.The payment period comes shortly before the 2026–2027 academic year begins. Students at UAE public schools and private schools following the Ministry of Education curriculum return on August 31, while other private schools follow calendars approved by their local education authorities.Many schools require the first tuition instalment this week, though deadlines vary by institution and emirate. In Dubai, re-enrolment deposits of up to 5% of annual tuition or Dh500, whichever is higher, are deducted from the first-term bill.An independent Gulf News review identified publicly advertised school-fee facilities from 13 UAE banks as of August 13. However, the list is not exhaustive or a ranking, as other lenders may offer unpublished or personalised payment plans.What each bank offersADCBADCB lets credit-card customers divide eligible school-fee payments over three, six or 12 months at zero interest. The bank charges a Dh50 processing fee plus VAT for each converted transaction.The offer remains valid until October 31, 2026. Parents can pay with an ADCB credit card directly or use the bill-payment facility through the bank’s digital channels, while early settlement of the plan attracts a Dh200 charge.Abu Dhabi Islamic BankADIB allows eligible school and university transactions of at least Dh500 to be divided over three, six or 12 months. It charges no processing fee and waives the Murabaha profit proportionately on the amount converted.Most retail ADIB Covered Cards qualify, although No Murabaha, Fast, Football, Business and ISIC cards are excluded. The payment must carry an eligible education merchant code and be converted through the bank’s app or contact centre within 30 days.Ajman BankAjman Bank offers three- or six-month instalments at selected education providers. Its published list includes City University College of Ajman, City School and Ajman Academy, with a minimum transaction of Dh3,000 at each institution.This is a participating-merchant facility rather than a general plan covering every UAE school. The bank’s current public page does not clearly state a campaign expiry date or separate processing charge, so customers should confirm both before paying.Al Hilal BankAl Hilal Bank’s School Fees Instant Cash facility transfers the requested amount directly from the customer’s credit-card account to the school’s UAE bank account. Customers can access up to 80% of their available card limit at a zero profit rate.The minimum amount is Dh5,000 and a one-time processing fee is charged upfront. Al Hilal does not publish the current fee or available repayment periods on the offer page, requiring customers to contact the bank for final pricing.CBD Al IslamiCBD Al Islami permits eligible purchases of Dh1,000 or more to be converted into three, six or 12 monthly instalments. The bank advertises no processing fee and allows customers to convert up to Dh100,000 or 90% of their available credit limit.The bank also lists selected schools and universities under its participating-merchant programme, where eligible transactions start from Dh500. Parents should check whether their institution appears on the current merchant list or whether the wider purchase-conversion facility applies.Dubai Islamic BankDIB is offering selected Visa Covered Card customers a six-month instalment plan with no profit or processing fee. The promotion applies to school and university payments of at least Dh1,000 made in the UAE or abroad between August 1 and September 15, 2026.The facility is limited to selected customers and excludes DIB corporate and charge cards. Eligible cardholders can request conversion by SMS or through the bank’s phone-banking service.Emirates IslamicEmirates Islamic permits eligible education transactions of at least Dh1,000 to be divided into instalments of up to 12 months at zero profit. The 12-month option applies only when the transaction exceeds Dh10,000, while the payment must have been completed within the previous 30 days.The offer remains valid until December 31, 2026. The bank’s public school-fee offer states that no monthly profit applies but does not separately specify a processing charge, so cardholders should confirm the final cost before conversion.Emirates Islamic also has a separate promotion for new Amazon Credit Cards issued between July 28 and August 15. Eligible education payments can be divided over three, six or 12 months at zero profit with no processing fee.School-fee transactions completed between July 28 and September 10 can also receive 10% back in Amazon Reward Points, capped at Dh750. The 12-month option requires a minimum eligible transaction of Dh10,000.Emirates NBDEmirates NBD allows education payments of Dh1,000 or more to be divided over six or 12 months at zero interest. Each conversion carries a one-time processing fee of Dh49.Transactions of at least Dh5,000 can be divided over 24 months, but the processing fee rises to 3% of the amount. A Dh20,000 school bill would therefore incur a Dh600 charge under the two-year option.The campaign remains valid until January 31, 2027. Cardholders can also redeem Plus Points against part or all of an eligible education payment, subject to the bank’s redemption rules.First Abu Dhabi BankFAB’s seasonal school-fee offer allows eligible credit-card transactions to be divided over three, six, nine or 12 months. The bank advertises zero interest and no processing fee.The campaign runs from July 15 to September 30, 2026. Parents must complete the school payment with an eligible FAB credit card and request conversion through the FAB Mobile app.HSBC UAEHSBC lets eligible credit-card customers convert school fees into interest-free instalments for up to 12 months. A processing fee of 2.10%, including VAT, applies.This means a parent converting a Dh30,000 payment would incur a Dh630 processing charge. Eligibility depends on the transaction, information held by HSBC and the bank’s internal policies, while the public page does not state a closing date for the education plan.National Bank of FujairahNBF allows eligible education payments between Dh3,000 and Dh100,000 to be divided over three months. The offer carries neither interest nor a processing fee.It covers transactions processed under merchant codes assigned to schools, universities, online learning providers, vocational institutes, tutoring centres, preschools and childcare services. The transaction must be converted by August 30, 2026, while early settlement attracts a Dh50 charge.RAKBANKRAKBANK allows eligible school-fee payments of at least Dh1,000 to be divided over three, six or 12 months at zero interest. The processing charge depends on how the parent pays.Transactions made through Skiply between August 5 and 31 carry no processing fee. For payments outside Skiply, the bank charges 1% for a three-month plan, 2% for six months and 4% for 12 months.A Dh20,000 transaction converted over 12 months outside Skiply would therefore incur a Dh800 processing fee. Islamic, business, SME and corporate credit cards are excluded from the promotion.Sharjah Islamic BankSharjah Islamic Bank’s Easy Cash facility explicitly permits customers to use funds for school fees. Holders of eligible Smiles or Cashback Covered Cards can access at least Dh1,000 and as much as 80% of their card limit.Three-month plans carry zero profit and a 1% administration fee, while six-month plans charge no profit but impose a 2% administration fee. Longer tenures carry monthly profit rates of 0.89% over 12 months, 0.79% over 18 months and 0.69% over 24 months, together with a 1% administration charge.(Banks have been listed alphabetically, with only publicly verified facilities that explicitly cover education fees included. Parents generally need enough available credit to pay the school in full before converting the transaction into instalments.)Zero interest isn't always freeA zero-interest or zero-profit label refers to the rate applied to the instalment balance. It does not automatically rule out processing, administration, VAT or early-settlement charges.The difference can become substantial on a large tuition bill. A 4% processing fee adds Dh1,600 to a Dh40,000 payment, even if the instalments themselves carry no interest.Parents should compare the total dirham cost rather than the advertised rate alone. A shorter plan with a small fixed charge may cost less than a longer zero-interest facility carrying a percentage-based fee.Check how payment classifiedEligibility often depends on the merchant category code assigned to the transaction by Visa or Mastercard. A payment may not qualify if the school, payment platform or intermediary processes it under a category other than education.Parents should ask the bank to confirm the transaction’s eligibility before paying. They should also check whether the school accepts the card directly or requires a specific platform such as Skiply.The full payment normally reduces the card’s available credit limit immediately, even when the bank later divides it into monthly instalments. The limit is restored gradually as the customer repays the balance.Each instalment forms part of the cardholder’s monthly payment obligation. Missing a payment can trigger standard card charges, affect the customer’s credit record or cause the remaining instalment balance to be treated as an ordinary card transaction.(Offer terms were checked against publicly available bank information on August 13, 2026. Banks may change, withdraw or extend promotions, while individual eligibility remains subject to the card type, available credit limit, transaction classification and the bank’s approval.)Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence.