What is DBR in banking? How to calculate DBR in the bank?

If you are applying for a bank loan or are using a credit card. Surely you have heard about the concept of DBR. So What is DBR in banking?? Meaning and how to calculate? All are in this article. Please read along to find out.

What is DBR in banking?

Customers need to know What is DBR? to know and understand what its effect is. Before a customer borrows money at a bank or is using a credit card of a certain bank. Then definitely have a debt repayment plan and assess how much debt repayment ability is. DBR is the debt repayment capacity of the customer. Calculating DBR means calculating the debt payment ability of the customer to what extent.

You are watching: What is Dbr

dbr

No matter where you borrow money, from banks or credit institutions, or simply buy goods on installments. Then your loan history as well as your purchases are recorded in detail.

DBR for banks is usually considered based on the monthly income of customers. The higher your monthly salary, the greater your ability to pay off debt. Means higher DBR. The higher the DBR, the easier it is for your loan or credit card application to be approved.

DBR is a common concept that is often mentioned by credit officers and banks before lending money to customers. Especially for foreign banks like Shinhan Bank.

How to calculate DBR in the bank?

Related Content: What is Coding? List the benefits of learning programming

For readers to best understand about DBR in the bank. Lamtheatmonline.com will always take a specific example.

dbr

For example: Customer A works as an employee for an enterprise and is paid a monthly salary of VND 20 million/month via Vietcombank bank card. This salary is inclusive of insurance deductibles. Customer A buys Samsung phones in installments with the amount of VND 2.5 million/month.

DBR is calculated at 60% of 1 month income (according to the data on the salary statement). So 60% x 20 million = 12 million dong. Customers also have to pay 2.5 million/month to pay phone installments. So the actual DBR of customer A = 12 million – 2.5 million = 9.5 million.

Thus, customer A can borrow unsecured loans at the bank with a loan limit within the limit so that the monthly interest payment does not exceed 9.5 million VND.

Details of DBR according to salary transfer:

See also: SCADA SOFTWARE – CLOUD BASED SCADA SYSTEM

- Monthly salary (transfer via card) is less than 12 million VND/month. DBR is less than or equal to 50%.

– Monthly salary (transfer via card) is less than 16 million VND/month. DBR is less than or equal to 55%.

- Monthly salary (transfer via card) is more than 16 million VND/month. DBR is less than or equal to 60%.

Can DBR = 0 get a bank loan?

If your monthly salary is low and you have too many payments each month, DBR=0 or less. Can I still get a bank loan? The answer is no or very difficult. The bank will no longer approve you for a loan or credit card. Because the ability to recover capital is not high.

Only way to pay off the loan, pay off the remaining balance. Or pay in full for installment purchases. Then your DBR will increase. And maybe you will get a new loan.

You already know What does DBR in bank mean and what it means. If there are any concepts about banking that you do not fully understand, please leave your question in the comment section below. We will answer your questions.

Other concepts: