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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.

Before you add another one, it is worth checking what the card actually costs to hold: compare UAE credit cards by annual fee, minimum salary and rewards.

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.

How to calculate DBR, step by step

You can work out your Debt Burden Ratio by hand in four steps; the calculator above just does it instantly:

1. Add up your monthly debt payments. Every loan instalment: personal, car, mortgage and any other EMI.
2. Add about 5% of your total card limits. Banks count this even on cards you never use.
3. Divide by your monthly income and multiply by 100. That percentage is your DBR.
4. Compare it to the cap. 50% in the UAE. The room below the cap is what you can still borrow.

Note: the 5% card rule and the 50% limit are what most UAE banks use. Other banks and countries can use different numbers, so always check with your own bank.

DBR in India, Pakistan, Bangladesh and beyond

The way to work it out is the same in every country. Only two things change: the limit, and the name banks give it.

• India: banks don't say DBR. They call it FOIR (Fixed Obligation to Income Ratio). A few say DTI. It means the same thing, and most banks like to keep it under about 50%.
• Pakistan: banks use the name DBR and usually keep it around 40–50% of your take-home pay.
• Bangladesh: the same idea is used by banks there; your total debt is kept within a set part of your income.
• Singapore: it's called TDSR (Total Debt Servicing Ratio), and the limit is 55%.

Since the formula never changes, this calculator works anywhere. Open settings, set the limit and card % your bank uses, pick your currency, and the result fits your country.

Please note: these names and limits are a general guide and can change. Always check the exact number with your own bank before you apply.