Personal debt ratio is simply the ratio of total personal liabilities to total personal assets. For example, if your monthly income is 10000 yuan and the total amount of loans to be repaid each month is 8000 yuan, then your personal debt ratio is (800010000) ×100% = 80%.
The personal debt ratio should not exceed 70%, but it doesn't necessarily mean that you can't apply for personal loans from banks if you exceed 70%. After all, different banks have different regulations on personal debt ratio. Some banks with higher loan thresholds may be rejected if their personal debt ratio exceeds 70%. In some banks, even if your personal debt ratio exceeds 70%, if your other qualifications are good and you can provide valuable proof of wealth, you will have a chance to get a loan.
Knowledge expansion:
Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. Banks put concentrated money and monetary funds out through loans, which can meet the needs of social expansion and reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation.
Generally speaking, for personal comprehensive consumer loans, personal credit loans and other loan types, the conditions for applying for loans are largely based on personal credit accumulation in banks. At this time, when applying for a loan, try to submit some materials that can increase your credit, such as academic qualifications and income certificates. The higher the credit accumulation, the larger the loan amount.