What is DTI?

One of the key indicators banks consider when issuing a loan is the BGN ratio.

Although it may sound like a technical term to many customers, it is actually one of the fundamental pillars of responsible borrowing and financial stability.

What is the BGN ratio?

BGN (Debt-to-Income Ratio) is an indicator that shows what portion of a person’s monthly income is used to repay existing and new credit obligations. Internationally, it is commonly referred to as DTI or DSTI.

Simply put, the BGN ratio answers the question:

Does your income allow you to safely meet your credit obligations?

WHY IS THE BGN RATIO IMPORTANT?

1. Ensures responsible lending
BGN is not just a risk indicator—it also protects customers from over-borrowing.

2. Supports financial stability
Higher debt burden increases the risk of delays and defaults.

3. Helps maintain household balance
Ensures there is enough income left for daily expenses and unexpected needs.

WHY DO BANKS APPLY BGN LIMITS?

Loan amounts are determined not only by income but by repayment ability.

Core principles:

Affordability
Responsible lending
Risk management

That’s why sometimes customers receive lower offers than expected—it’s a safeguard, not a limitation.

WHAT HAPPENS WHEN BGN IS HIGH?

As BGN increases:

Loan limits may decrease
Loan terms may change
Applications may require additional review
In some cases, loans may be declined

This is not rejection—it’s risk management.

HOW TO KEEP BGN AT A HEALTHY LEVEL?

Manage existing debts
Borrow according to your income
Avoid multiple loans at once
Maintain payment discipline
Plan your budget before borrowing

BGN IS MORE THAN JUST A NUMBER

The BGN ratio is a key indicator of financial health.
It helps banks assess risk and helps customers borrow sustainably and comfortably.

Because a good loan is not just about receiving money—it’s about being able to repay it with ease.