This helps in reducing the overall debt burden ratio
when you consider home finance or any other type of finance.
To protect consumers, the UAE Central Bank has specified that the Debt Burden Ratio
(DBR) - the maximum percentage of an individual's income that goes toward debt payment - should be no more than 50 percent.
The regulations in Saudi Arabia sets the Debt Burden Ratio
(DBR) for the consumer at 33 percent.
Moreover, you have to consider the debt burden ratio
where a customer cannot have more than 50 per cent of his income being spent into paying back any debts that he has.
BMI Bank's loan eligibility is based on the customers' current income, financial liabilities as well as the debt burden ratio
Other major restrictions brought in by CBO on consumer loan front last year include introduction of debt burden ratio
(the portion of salary that goes as loan repayment) of 50 per cent and 60 per cent for personal and housing loans, respectively.
The state budget analysis points out that when those payments begin, the athletic department's debt burden ratio
- debt payment as a percentage of overall revenue - will jump to 25 percent from the current 5 percent.
Adjustments for such fixed-payment obligations would push the debt burden ratio
higher by about 0.
In May this year, the Central Bank of Oman (CBO) issued new regulations for personal and housing loans in which it stipulated that the debt burden ratio
(DBR) - the ratio of equated monthly instalments (EMIs) to the borrowers monthly income - should not be more than 50 per cent for personal loans.
The retail loan growth was affected by recent regulatory restrictions, mainly the capping of debt burden ratio
at 50 per cent and reducing repayment tenor to ten years, sources said.
The central bank also specifies that the debt burden ratio
(calculated in total monthly instalments of all debt burden) should not exceed 50 per cent of the monthly income.
The debt burden ratio
for housing loans is set at 60 per cent from the net salary deposited to the bank.