EIBOR, or the Emirates Interbank Offered Rate, is a benchmark interest rate, which is the average rate at which banks in the United Arab Emirates (UAE) offer to lend unsecured funds to other banks in the UAE interbank market. Essentially, it’s a reference rate for the cost of borrowing money within the banking sector in the UAE.
What is EIBOR used for?
EIBOR is often used as a reference rate for setting the interest rates on various financial products, including mortgages, personal loans, and car loans in the UAE. The interest rate on these products is typically expressed as EIBOR plus a fixed margin, which remains constant.
