How To Calculate DBR

How to Calculate DBR in UAE

The Debt Burden Ratio, or DBR, is a statistical ratio that banks consider when determining whether a certain applicant is qualified for a loan. Even though each bank has its own set of eligibility requirements when it comes to approval, there are a few common characteristics that all banks follow, such as credit score, debt-burden ratio, and so on. Looking for how to calculate DBR in UAE? Here is the complete guide.

You can easily determine your DBR by dividing your monthly expenses by your monthly income. Let’s say Mr. X has a monthly salary of AED 15000 and has a couple of monthly expenses.

Let’s figure out his DBR:

How to Calculate DBR in Monthly Income

20000 AED

Total Debts

  • Personal Loan Installment: AED 1800
  • Monthly Rent: AED 5000
  • Car Loan: AED 3000

Debt Burden Ratio (DBR): Debts/Monthly Income

DBR = 9800/20000 

DBR= 49%

Mr. X is approved for a new loan since his DBR is 49 percent, which is less than the 50 percent maximum. However, we can see that it is near the maximum limit. This will do for the time being. If he receives a new loan, however, this will very certainly surpass 50%, and he will not be eligible for another loan until part of the debt is reduced.

There was no such thing as DBR compulsion in the UAE before the last decade. The maximum credit score was 65 percent, and anyone who scored more than that was ineligible for any type of loan. The DBR of 65 percent or less was a flexible requirement, and any candidate could have a DBR of 65 percent or less.

Banks at that time gave loans with just bank statements as required documents, which resulted in banks losing profits when customers failed to pay their bills. When they take out loans from multiple banks at the same time, the DBR rises since the monthly interest on debts in the UAE can sometimes exceed the income. Taking these factors into account, most banks have reduced it to 50% at this time. The best way to find out calculate DBR in UAE


  1. Pay your monthly interest on time and aim to gradually pay down your loan balance.
  2. Try using a debt settlement service to consolidate your debts into low-interest transfers.
  3. Make an effort to increase your monthly revenue.
  4. Pay off any outstanding debts as soon as possible.

These are a few methods for reducing your DBR while maintaining a strong credit score.

The burden of the Debt Ratio was established not just to keep banks secure by giving out fewer loans, but also to prevent customers from overspending and getting into debt. “A bad debt means forsaking your future requirements for your present demands,” a wise man once stated. Remember this and act appropriately.

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