How to use the calculator
- Enter your gross monthly salary, plus any other regular income from a defined source.
- Enter the monthly instalment of each loan and the total of your credit card limits. Leave the card share at 5% or change it to the figure your bank uses.
- If you are thinking about a new loan, add its instalment, and choose the cap that applies to you.
How the ratio is calculated
DBR = (loan instalments + card limits × card share + new instalment) ÷ gross monthly income
Room left = income × cap − existing repayments
The cap applies to everything you owe banks and finance companies together, at any time, not to each loan on its own.
Maximum debt burden ratio
50%
Monthly deductions for all loans and facilities from banks and finance companies together, including car loans, home loans, overdrafts and credit cards, must not exceed 50% of the borrower's gross salary and any regular income from a defined and specific source, at any time.
- Applies to
- Banks and finance companies licensed by the CBUAE (conventional and Islamic), lending to individuals
- Source
- CBUAE Regulation No. 29/2011 Regarding Bank Loans & Other Services Offered to Individual Customers, Article (7) Repayment Installments, Central Bank of the UAE
- Checked
The rule says repayments must not exceed the cap, so a ratio of exactly 50% is within it, but it leaves no room for more credit. The calculator reports "exactly at the cap" in that case.
What counts as debt
| Repayment | Counts towards the DBR |
|---|---|
| Personal loan | Yes |
| Car loan | Yes |
| Home loan | Yes |
| Overdraft | Yes |
| Credit card | Yes, as set by the bank's policy |
Credit cards in the ratio
A card limit is allowed on top of your loans, but its repayments must fit within the same 50% cap. How much of a card limit counts as a monthly payment is each bank's own policy.
The credit bureau has its own measure, the Income Utilisation Ratio, which appears in your credit report. It counts a fixed share of every active card limit. That is why the calculator starts at 5%: it is the bureau's convention, not a Central Bank rule, so change it if your bank tells you a different figure. More on card eligibility in credit card eligibility.
How the credit bureau counts card limits
5% of card limits
The bureau's Income Utilisation Ratio counts 5% of the credit limit of every active credit card as a monthly payment, alongside loan instalments and last month's telecom and utility dues, against your last reported income.
- Applies to
- Etihad Credit Bureau reports (a bureau metric, not the CBUAE DBR rule)
- Source
- Income Utilisation Ratio (IUR), Etihad Credit Bureau (AECB)
- Checked
Worked example
Worked example
Salary AED 20,000, a car loan and AED 30,000 of card limits
The salary, loan and card limits are illustrations.
- Car loan instalment: AED 2,500 a month.
- Card limits counted at 5%: 30,000 × 5% = AED 1,500 a month.
- Existing repayments: AED 4,000. Ratio: 4,000 ÷ 20,000 = 20%.
- The 50% cap allows AED 10,000 a month, so the room left is 10,000 − 4,000 = AED 6,000.
This borrower's ratio is 20%, with AED 6,000 a month of room under the cap.
When a different cap applies
Two groups of borrowers are tested against a different figure. Choose it in the calculator under "Cap to test against".
Loans that run past retirement
30%
If a loan's repayment period runs past the borrower's retirement, the lender must schedule it so that deductions from that point do not exceed 30% of income or pension.
- Applies to
- Borrowers whose loans or facilities extend beyond retirement age
- Source
- CBUAE Regulation No. 29/2011 Regarding Bank Loans & Other Services Offered to Individual Customers, Article (7) Repayment Installments, Central Bank of the UAE
- Checked
Housing-programme home loans with a guarantee
60% DBR
When a UAE national's home loan for owner occupation under a local government housing programme is covered by a guarantee, the maximum DBR rises to 60% and the LTV may go up to 85% for property worth AED 5 million or less.
- Applies to
- UAE nationals, loans under local government housing programmes that are covered by a guarantee
- Source
- CBUAE Regulations Regarding Mortgage Loans (Circular 31/2013, as amended), Article (5) Housing Programs, Central Bank of the UAE
- Checked
Mortgage lenders apply the same 50% cap but test it at an interest rate 2 to 4 percentage points above the current rate. The mortgage affordability calculator does that for you, and mortgage limits for expats explains the other home loan rules.
What lenders check besides the ratio
- Lenders may not lengthen a loan's term just to bring your ratio under the cap and lend more, or close a loan only to open a bigger, longer one.
- A personal loan cannot be more than 20 times your monthly salary or total income, whatever your ratio.
- Lenders also assess whether you can afford the loan and look at your credit report; see what lenders weigh besides your score and the responsible lending rules.
Note
The cap is a maximum, not a promise. A bank can offer less than the room the calculator shows, or decline. For loans without a salary transfer, see personal loans without salary transfer.