What is DBR and how is it calculated?
DBR, the debt burden ratio, is the share of your gross monthly income that already goes to loan and card repayments. Banks check it before approving a personal loan, a card or a mortgage.
The formula is: DBR = total monthly debt repayments / gross monthly income x 100.
| Worked example | Figure |
|---|---|
| Gross monthly income | AED 20,000 |
| Existing monthly repayments | AED 3,000 |
| DBR today | 15% |
| Maximum total repayments at 50% | AED 10,000 |
| Room for a new instalment | AED 7,000 a month |
| Loan that instalment could support (8% reducing, 48 months) | About AED 286,700 |
If this person asked for a loan with an instalment of AED 8,000 a month, total repayments would be AED 11,000, a DBR of 55%, which is over the limit.
What is the DBR limit in the UAE?
UAE Central Bank rules cap total monthly obligations, loans and cards together, at 50% of gross salary, as our personal loan guide explains. Banks can also set a stricter limit for a given product or employer category, so a lender may approve less than the cap allows.
What counts towards your DBR?
- Personal and car loans - the monthly instalment on each.
- Mortgage payments - the monthly instalment.
- Credit cards - banks may count a card by its limit or a fixed share of it rather than the amount you actually pay, so check how your lender treats them.
- Other regular instalments - for example, Mashreq's published terms for its debt consolidation loan refer to loan instalments plus other regular monthly instalments.
Your income is checked too. The AECB report includes your last reported salary, so what lenders see there matters. Our AECB guide explains what the report contains.
How to lower your DBR before you apply
- Pay off or close small loans that carry a high instalment for a low balance.
- Reduce card balances and limits you do not use.
- Restructure or consolidate into one lower instalment. Compare total cost, not only the monthly figure: see debt consolidation, buyout and settlement.
- Make sure income is documented - salary transfer or a salary certificate, so the bank counts all of it.
Over the limit, or close to it?
Ask a Fintrust advisor →Business owners: DBR and DSCR
DBR measures personal borrowing against personal income. For a company loan, lenders look at the company's cash flow instead, using the debt-service coverage ratio (DSCR), and often at the owners' personal commitments as well because of personal guarantees. Our business loan guide covers what lenders check, and the loan calculator shows what an instalment will be.
Frequently asked questions
DBR stands for debt burden ratio: your total monthly loan and card repayments divided by your gross monthly income. Banks use it to decide whether you can afford a new loan.
UAE Central Bank rules cap total monthly obligations, loans and cards together, at 50% of gross salary. A new loan has to fit inside that cap together with the debt you already have.
Add up every monthly repayment (loans, car finance, mortgage and card payments), divide by your gross monthly income and multiply by 100. For example, AED 3,000 of repayments on AED 20,000 income is a DBR of 15%.
Yes, card obligations count towards your total. Banks may measure them differently from what you actually pay each month, so ask the lender how it treats your card limits.
Pay off small loans completely, clear card balances, or restructure debt into a lower instalment. A longer tenor lowers the monthly payment but usually raises the total interest. Our debt consolidation guide compares the options.
This calculator is for illustration only and is not a lending offer. Actual terms depend on each lender's policy, fees and your documents.
Related guides:
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