Know your debt-burden ratio and whether you are eligible for more finance
This is the ratio of your total payments to your total income
This is the ratio of your total payments to your total income
This is the ratio of your total payments to your total income, and is used by banks to calculate your eligibility for finance and credit cards.
Your debt-burden ratio (DBR) is the ratio of your total monthly payments (including your finance and credit card installments), to your total income. This number is used by banks to calculate your eligibility for finance and credit cards.
As per the UAE Central Bank, your DBR ratio must not exceed 50%. In simple terms, you can only use half of your income to pay off your debts. Banks check your credit score before granting you finance to determine your DBR ratio, which indicates your current liabilities. For pensioners, the DBR must not exceed 30%.
Debt-burden ratio = total debt/total income
To know if you are eligible for our Personal Finance, use the Personal Finance Eligibility Calculator or contact our 24-hour Call Centre on +971 600 599 995 and one of our customer service representatives will be happy to help you.
The lower this number is, the more likely your finance or credit card application will be considered.
You can improve your debt-burden ratio by reducing your debts and monthly payments or by increasing your income.
A higher cost of finance can increase your debt-burden ratio. Informal sources or banks can often charge high profit rates which can take your debt-burden ratio up.
Yes, by paying off your debts.
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