If you’ve ever applied for a credit card or personal loan in the UAE, you’ve probably heard the term DBR, also known as the Debt Burden Ratio. It’s that one number that can make or break your loan approval. You could be earning a solid income, have a stable job, and still face rejection, all because your DBR is too high.
In this guide, I’ll break down what DBR calculation means, how to calculate DBR in UAE, how to calculate DBR for credit cards, and how you can keep it in the safe zone.
What is the DBR (Debt Burden Ratio) Calculation?
The Debt Burden Ratio (DBR) is a financial term used by UAE banks to measure how much of your monthly income goes toward debt repayments.
In simpler words:
- DBR = (Total Monthly Debt Payments ÷ Total Monthly Income) × 100
This tells banks how stretched your finances are. If too much of your income goes toward debt, banks will see you as a risky borrower — and that’s where the rejections start.
Calculate DBR in UAE
Let’s break it down clearly so you can calculate your own DBR — right now.
1: Add Up All Your Monthly Debt Payments
List every monthly payment you make toward:
- Personal loans
- Car loans
- Home loans or mortgages
- Credit card minimum payments
- Any other installment-based commitments
Even if you pay more than your minimum due, banks still count only the minimum required amount in the DBR calculation.
2: Identify Your Gross Monthly Income
Now, note down your total income — that’s your salary before deductions.
This includes:
- Your basic salary
- Fixed allowances
- Commissions or bonuses (if consistent)
If you’re self-employed, you can use your average monthly income from business statements.
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3: Use the DBR Formula
Now apply the formula:
DBR = (Total Monthly Debt ÷ Monthly Income) × 100
For example, if your total monthly debt is AED 3,000 and your salary is AED 10,000:
DBR = (3,000 ÷ 10,000) × 100 = 30%
That means 30% of your income goes toward debt repayment.
4: Understand Your Result
Now, here’s how banks read your DBR:
- Below 40%: You’re financially healthy. Loan approval chances are high.
- 40%–50%: You’re on the edge. Approval might depend on your credit score or income stability.
- Above 50%: Too risky. You’ll likely face rejection.
Calculate DBR for Credit Cards in the UAE
When banks calculate your DBR for credit cards, they don’t look at your total credit limit; they look at the minimum payment due on your cards.
Here’s what to do:
- Write down the minimum payment due for each card (usually 5% of your total balance).
- Add them together.
- Include your loan EMIs.
- Apply the DBR formula again.
Example 1
Let’s say:
- Salary: AED 15,000
- Personal Loan EMI: AED 3,000
- Car Loan EMI: AED 1,000
- Credit Card Limit: AED 10,000
Step 1: Calculate credit card burden → 5% of 10,000 = AED 500
Step 2: Add all debt payments → 3,000 + 1,000 + 500 = AED 4,500
Step 3: Divide by income → 4,500 ÷ 15,000 = 0.3
Step 4: Multiply by 100 → 0.3 × 100 = 30% DBR
- Your DBR = 30%, which is within the safe range.
Example 2
- Input:
- Salary: AED 12,000
- Personal Loan EMI: AED 3,500
- Car Loan EMI: AED 2,000
- Credit Card Limit: AED 15,000
- Credit card burden: 5% of 15,000 = 750 AED
- Total repayments: 3,500 + 2,000 + 750 = 6,250 AED
- DBR: (6,250 ÷ 12,000) × 100 = 52.08%
Your DBR = 52%, which exceeds the 50% limit — the bank will likely reject your new loan.
DBR Calculated by UAE Banks
Banks in the UAE — whether it’s Emirates NBD, ADCB, Mashreq, or RAKBANK — all calculate DBR using the same basic logic.
Here’s how they do it:
- They access your credit report from Al Etihad Credit Bureau (AECB).
- They list out all your financial obligations — EMIs, credit card dues, etc.
- They divide your total debt payments by your gross monthly income.
- They multiply by 100 to get the DBR percentage.
And if that number crosses 50%, your application is out. No matter how good your credit score is.
Calculate DBR Ratio
If you ever need a quick check:
DBR Ratio = (Monthly Loan Payments + Credit Card Minimums) ÷ Gross Income × 100
Keep this formula handy. It’s your go-to financial compass before applying for any new credit product in the UAE.
Calculate DBR in Dubai
If you’re in Dubai, the calculation is the same, but approval thresholds are a bit tighter. Banks in Dubai tend to be more cautious. They prefer DBRs below 45% because the city’s lifestyle and costs are higher. So while the math remains the same, the interpretation changes slightly:
- Aim for under 45% for fast approval.
- Between 45%–50%? Be ready to show extra proof of income.
You can calculate your DBR using our DBR calculator.
DBR is Calculated for Self-Employed People
If you’re running your own business, your DBR is still measured using the same formula — but your income calculation is different.
Banks will use:
- Your average monthly business income (usually based on the last 12 months)
- Sometimes, only 70–80% of that income is considered “stable”
So, your DBR might appear slightly higher even if your business earns well.
DBR Limit in UAE
Let’s make this crystal clear: the Central Bank of UAE says your total DBR must not exceed 50%. If you earn AED 12,000, your maximum allowed debt is AED 6,000 per month.
This rule applies to all banks and financial institutions across the UAE, from Dubai to Fujairah. No bank can bypass this limit. it’s a regulation.
Lower Your DBR
Here are ways to lower your DBR in the UAE.
1. Pay Down Your Credit Cards
Your credit cards are DBR killers. Even if you only pay the minimum due, that small amount still counts against you.
2. Consolidate Loans
If you’re juggling multiple EMIs, consider loan consolidation — merge them into one manageable payment with a lower rate.
Fewer payments = lower DBR.
3. Increase Your Income
Even a side hustle, freelance gig, or rental income counts. Banks consider any regular income in DBR, and that raises your approval odds.
4. Don’t Apply for Too Many Loans at Once
Every loan application triggers a credit inquiry — and too many of those signal desperation. Focus on optimizing your DBR first, then apply smartly.
5. Track and Optimize Regularly
Keep tabs on your DBR monthly — just like you would track your SEO rankings. Use a simple formula or a financial app. When you know your numbers, you can plan better.
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Final Thoughts
Your DBR calculation is more than a number; it’s your financial report card. Keep it under control, and doors open. Let it rise unchecked, and opportunities disappear.
If you’re wondering:
- How to calculate DBR in UAE
- How DBR is calculated for credit cards or Dubai banks
- Or how to improve your DBR ratio
