Post by nurnobisorker14 on Oct 30, 2024 4:02:48 GMT -5
In 2019, the Central Bank of Russia obliged all credit institutions to calculate the DTI — an indicator of the debt burden — for individuals before making a final decision on issuing or refusing loans. The goals of the innovation: for potential borrowers — preventing the occurrence of excessive monetary obligations, for banks and microfinance organizations — reducing the risk of non-repayment of funds.
Contents hide
1) Debt burden - the main thing about the indicator
2) Objectives of calculating the level of credit burden
2.1) When it is mandatory and NOT mandatory to determine the PDN
3) Terms of credit registration and DTI - link
4) General formula for calculating the DTI
4.1) Determine the average monthly expenses
4.2) Calculate average monthly income
4.3) Calculate the debt burden ratio
5) Another way to calculate the DTI
6) Optimal debt load ratio
7) What is debt burden - results
Debt burden - the main thing about the indicator
Most often, the DTI is understood as the ratio of the amount of mandatory contributions on loans and microloans already received and being issued to the amount of monthly income. Thanks to the debt burden ratio, employees of banking and microfinance organizations can impartially assess the solvency of potential clients. If, according to the calculation results, it turns out that the candidate, after making mandatory payments, does not have enough funds for current needs, he is denied financial assistance.
When calculating the DTI, the bulk email campaigns requested amount is necessarily taken into account. Knowing how to calculate the credit load, you can also determine the amount of funds that the lender will not refuse to issue. Often, to approve an application, you just need to reduce the amount in it.
Objectives of calculating the level of credit burden
The concept of DTI was introduced in the Russian Federation by the banking sector regulator in October 2019. Previously, each bank in our country could, at its own discretion, based on domestic policy, decide on how solvent a particular candidate for financial support was. Credit institutions could also independently decide on the issue of the proper amount of financial reserve.
In 2023, Russian creditors are required to calculate the debt burden ratio in order to:
Do not violate the Central Bank's regulations. The regulator's conditions concern, among other things, the size of the organization's capital in case of possible losses. Among the sanctions for failure to comply with the requirements of the Central Bank of the Russian Federation is the revocation of the license to operate.
Minimize the risks of non-repayment of funds associated with providing funds as a loan to a borrower with a high credit load ratio.
Reduce the number of debtors who cannot meet their financial obligations.
The first point, concerning the adequacy of reserves, is especially important for banks. The more money an institution provides to citizens with a high DTI, the more impressive its own capital should be - a reserve fund for settlements with its creditors, investors and depositors.
Let's look at an example: five clients opened deposit accounts with a bank, depositing 200 thousand rubles into them. The organization issued loans for 200 thousand rubles to six citizens. Three of the borrowers stopped making monthly payments. As a result, the credit institution, which does not have its own capital in the required amount, cannot fulfill its obligations to depositors. Calculations of debt burden indicators and the presence of reserve funds are necessary for banks to prevent such cases.
Try paying in installments
First payment only after 30 days
Find out the limit
When it is mandatory and NOT mandatory to determine the PDN
Situations in which banking organizations must, at the request of the Central Bank of the Russian Federation, calculate the DTI before making a decision on the application:
increasing the credit line on the client’s current card;
extension of the credit period;
restructuring of an open loan with an increase in the amount of the monthly payment;
drawing up a new loan agreement.
Cases in which the regulator permits not to calculate the coefficient:
debt restructuring, in which the amount of the mandatory monthly payment is reduced;
provision of credit holidays on mortgages;
issuance of a housing loan under the state program "Military Mortgage" or a preferential educational loan;
registration of a loan or credit card with a limit of up to 10 thousand rubles.
Citizens themselves are advised to calculate and not calculate their own debt burden indicator in these same situations.
Terms of credit and PDN — link
It is wrong to assume that if a potential debtor has a high DN coefficient, the bank will necessarily reject his application for financial support. Banking organizations provide loans to citizens with low solvency, using special insurance instruments against losses arising from delays.
Contents hide
1) Debt burden - the main thing about the indicator
2) Objectives of calculating the level of credit burden
2.1) When it is mandatory and NOT mandatory to determine the PDN
3) Terms of credit registration and DTI - link
4) General formula for calculating the DTI
4.1) Determine the average monthly expenses
4.2) Calculate average monthly income
4.3) Calculate the debt burden ratio
5) Another way to calculate the DTI
6) Optimal debt load ratio
7) What is debt burden - results
Debt burden - the main thing about the indicator
Most often, the DTI is understood as the ratio of the amount of mandatory contributions on loans and microloans already received and being issued to the amount of monthly income. Thanks to the debt burden ratio, employees of banking and microfinance organizations can impartially assess the solvency of potential clients. If, according to the calculation results, it turns out that the candidate, after making mandatory payments, does not have enough funds for current needs, he is denied financial assistance.
When calculating the DTI, the bulk email campaigns requested amount is necessarily taken into account. Knowing how to calculate the credit load, you can also determine the amount of funds that the lender will not refuse to issue. Often, to approve an application, you just need to reduce the amount in it.
Objectives of calculating the level of credit burden
The concept of DTI was introduced in the Russian Federation by the banking sector regulator in October 2019. Previously, each bank in our country could, at its own discretion, based on domestic policy, decide on how solvent a particular candidate for financial support was. Credit institutions could also independently decide on the issue of the proper amount of financial reserve.
In 2023, Russian creditors are required to calculate the debt burden ratio in order to:
Do not violate the Central Bank's regulations. The regulator's conditions concern, among other things, the size of the organization's capital in case of possible losses. Among the sanctions for failure to comply with the requirements of the Central Bank of the Russian Federation is the revocation of the license to operate.
Minimize the risks of non-repayment of funds associated with providing funds as a loan to a borrower with a high credit load ratio.
Reduce the number of debtors who cannot meet their financial obligations.
The first point, concerning the adequacy of reserves, is especially important for banks. The more money an institution provides to citizens with a high DTI, the more impressive its own capital should be - a reserve fund for settlements with its creditors, investors and depositors.
Let's look at an example: five clients opened deposit accounts with a bank, depositing 200 thousand rubles into them. The organization issued loans for 200 thousand rubles to six citizens. Three of the borrowers stopped making monthly payments. As a result, the credit institution, which does not have its own capital in the required amount, cannot fulfill its obligations to depositors. Calculations of debt burden indicators and the presence of reserve funds are necessary for banks to prevent such cases.
Try paying in installments
First payment only after 30 days
Find out the limit
When it is mandatory and NOT mandatory to determine the PDN
Situations in which banking organizations must, at the request of the Central Bank of the Russian Federation, calculate the DTI before making a decision on the application:
increasing the credit line on the client’s current card;
extension of the credit period;
restructuring of an open loan with an increase in the amount of the monthly payment;
drawing up a new loan agreement.
Cases in which the regulator permits not to calculate the coefficient:
debt restructuring, in which the amount of the mandatory monthly payment is reduced;
provision of credit holidays on mortgages;
issuance of a housing loan under the state program "Military Mortgage" or a preferential educational loan;
registration of a loan or credit card with a limit of up to 10 thousand rubles.
Citizens themselves are advised to calculate and not calculate their own debt burden indicator in these same situations.
Terms of credit and PDN — link
It is wrong to assume that if a potential debtor has a high DN coefficient, the bank will necessarily reject his application for financial support. Banking organizations provide loans to citizens with low solvency, using special insurance instruments against losses arising from delays.
