One hundred per cent financing value is available but the maximum personal financing amount is also subject to the applicant's Debt Burden Ratio
It also mentioned that with the continued rise in inflation, the Central Bank of Egypt (CBE) has introduced a minimum debt burden ratio
requirement as well as linked loan repayments to salary accounts in order to reduce credit risk exposure for the banks and avoid overheating the lending market.
Debt burden ratio
(DBR) is a key eligibility criterion an individual should know before one approaches a bank for a loan.
customers can also view their debt burden ratio
(monthly loan and card repayments as a percentage of their salary) as well as access tips on how to maintain a healthy credit score by ensuring regular repayments, borrowing wisely, and following other healthy financial practices.
Under debt consolidation, any additional finance would be subject to the 50 per cent debt burden ratio
cut-off, as mandated by the Central Bank of UAE.
However, today, we find that many residents spend a great portion of their salaries paying back existing debt." 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.
bayzat launched its unique mortgage and DBR (Debt Burden Ratio
) application in 2013, introducing it after the Central Bank announced the new UAE mortgage law that specified a borrower's DBR should not exceed 50 per cent of their monthly income.
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.
Loan providers are required to develop standard Debt Burden Ratio
("DBR") calculation templates for this purpose.