Am I Eligible for More Auto Loans?
This will depend on your debt-burden ratio (DBR), the ratio of your total monthly outgoing payments (including installments towards your loans and credit cards) to your total income. A bank in which you apply for an auto loan will use this number to calculate your eligibility for loans and credit cards, as it shows current liabilities and your ability to pay back.
According to the UAE Central Bank, your DBR ratio must not exceed 50% to be eligible for more financing. Put simply, you can only use half of your income towards paying your debts. Banks check your credit score before lending finance to determine your DBR.