Your debt-burden ratio

Your total payments to your total income tells the bank if you're eligible for more finance

Are you eligible for more finance?

Your debt-burden ratio (DBR) is the ratio of your total monthly outgoing payments (including installments towards your loans and credit cards), to your total income. This number is used by banks to calculate your eligibility for loans and credit cards as it shows your current liabilities and your ability to pay back.

According to the UAE Central Bank, your DBR ratio must not exceed 50% for you to be eligible for more finance. Put simply, you can only use half of your income to pay towards your debts. Banks check your credit score before lending finance to determine your DBR. For pensioners, the DBR must not exceed 30%. 

Calculate your debt-burden ratio

Debt-burden ratio = total debt / total income

If your debt-burden ratio is less than 50%, you’re eligible for more finance, but always subject to the bank's approval. The lower this number, the higher the possibility of you getting a loan or credit card.

You can improve your debt-burden ratio by reducing your debts and monthly outgoings, or by increasing your income.


A higher cost of borrowing can increase your debt burden ratio. Informal sources or lenders can often charge high rates of interest which can take your debt burden ratio up.
Yes you can, by paying off your debt.