Know your loan eligibility in seconds

What is DBR, in plain words?

DBR stands for Debt Burden Ratio. It's one number that answers one question: out of the money you earn every month, how much already goes towards paying debts?

Banks check it before saying yes to any loan or credit card. If too much of your salary is already committed, a new loan becomes risky — for you and for them.

The 5% credit card rule

Here's the part that surprises most people: even a credit card you never touch counts against you. Banks take around 5% of your total card limit and treat it as a monthly payment you're already making.

This is why people with several cards often get smaller loan offers than they expect. The limits add up quietly in the background.

Why UAE banks use the 50% cap

The UAE Central Bank set a clear rule: your monthly debt payments cannot cross half of your monthly income. Every bank in the country — Emirates NBD, FAB, ADCB, Mashreq, RAK, DIB and the rest — follows it.

So if you earn 15,000, the most you can commit to debts each month is 7,500. Whatever room is left under that line decides the size of your next loan. Other countries set different limits, which is why this calculator lets you change the cap in settings.

Four ways to lower your DBR

If your DBR is sitting too close to the cap, you have more options than you might think:

• Cut card limits you don't use. Reducing a 30,000 limit to 10,000 frees up 1,000 of monthly headroom instantly. The Reduce CC tool above shows you exactly how much to cut.
• Close small loans first. Clearing one EMI completely helps more than part-paying a big one.
• Show your full income. Regular overtime and allowances count at most banks — bring three months of proof.
• Pick a longer tenure. Same loan, smaller EMI, lower DBR. The comparison table above shows the trade-off in interest.