Loans

The 50% rule: debt burden ratio explained

Why the bank said "not more than this" — and how to calculate your own DBR before you apply.

4 min read14 Oct 2026Beginner
Gulf Policy Souq Editorial TeamUpdated 14 Oct 2026 · UAE personal finance
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Reading time4 minutes
Key takeaways3 to remember

01The formula

Add up all your monthly debt repayments — loans, mortgage and a portion of your credit card limits — and divide by your monthly salary. Under UAE rules this generally can't go above 50%.

02Credit cards count even unused

Banks usually count a percentage of each card's limit as a monthly obligation, even if you don't use the card. Closing unused cards can free up room.

DBR = monthly debts ÷ salary.KEY POINT

03How to lower it

Pay off a small loan, close unused cards, lengthen a tenure, or borrow a smaller amount.

04Why it protects you

A lower DBR leaves room for rent, savings and emergencies. Just because you can borrow up to 50% doesn't mean you should.

Try it yourself

Debt burden ratio calculator

Work out your DBR before the bank does. Figures are examples — use your own numbers.

Key takeaways

What to remember

The three points that matter most from this guide.

01

DBR = monthly debts ÷ salary.

02

UAE rules generally cap it at 50%.

03

Unused card limits can still count.

Debt Burden RatioYour total monthly debt repayments as a percentage of your salary. UAE rules generally cap it at 50%.EMIEquated Monthly Instalment — the fixed amount you pay every month to repay a loan, covering both principal and interest.Credit LimitThe maximum amount you can spend on a credit card.
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General information only, not financial advice. Rules and bank terms can change — always confirm with your provider.

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