DSR is Debt Service Ratio
It is a comparison of your debt commitment to your income. In other words, how much of your income will be used to repay your loans.
DSR = Total debt commitments per month
Total income per month
Let’s use an example. Ahmad earns RM4,500 a month. He has a car loan that requires him to pay RM800 each month and a home loan that requires him to pay RM1,600 each month in mortgages. Using the formula above, Ahmad’s DSR is 53%.
Ahmad’s DSR = RM800 + RM1,600
Banks generally, will accept a DSR below 60% for all debt commitments you have. This means that if Ahmad wants to apply for a personal loan in the future, he cannot have additional monthly commitments beyond RM300, unless his earnings per month increases.
Note: The repayment amount shown using this calculator is an estimate, based on information you have provided. It is provided for illustrative purposes only and actual repayment amounts may vary.
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