What is debt burden ratio ( DBR) and why it is Important for credit underwriting?

What is a DBR: Debt Burden Ratio is a equation to identify the ability of applicant of due repayment.
Usually, the monthly income determines either for specify the value of financing or MI (Monthly Installment).
  Why it is important: Any esteemed financial firms, educated the loan prior granting and identify the purpose of loan, as well as study the5Cs: Character, Collateral, Credit History, Capital, Cash flow.
Then calculate all income to decide how applicant can repay his MI, and at the same time he can meet his normal life requiements, with evaluation to 2 issues: 1.
Business Environment, and 2.
Family Requirement.
Since applicant will be concentrated to take the loan, he will accept with whole conditions, but after loan granted, he will start to review his financial status, so Credit Officer/Analyst must incpect & scrutinize the financing application carefully and calcculate the DBR compare to income, otherwise both applicant and lender will face difficulties, as applicant will unable to repay outstanding at least on exact due date, as well as lender's delinquency ratio will be negtively effected.
By any meaning, DBR is one of main financing cretaria, which should not be eligible for any deviations.
Hopefully, the above lines supports your research.
Profound Regards, Sincerely, Mohammed Tatay

Definition of Debt Burden: Debt burden is the cost of servicing debt. For consumers it is the cost of interest payments on debt. The debt burden will be higher for credit cards and loans with high interest. The debt burden on mortgages will be relatively lower compared to value of loan.

For countries the debt burden is the cost of servicing the public debt. Most of this debt burden is a really transfer from one generation to another. However, National debt can be a real debt burden because:

• If the debt is held externally. E.g.25% of US debt is held abroad making US liable for external interest transfers.
• When debt is held externally, it may also cause a depreciation in the exchange rate and hence a worsening of the terms of trade. (imports more expensive)
• High public debt may also cause higher taxes which distort work incentives e.t.c

Debt burden is the cost of servicing debt.
This is the ratio of debt burden to income.
For example, if you pay $2,000 in debt interest and have an income of $40,000, your debt burden ratio is5%.
In banking, underwriting is the detailed credit analysis preceding the granting of a loan, the purchase of corporate bonds, commercial paper, government securities, IPO, etc., which is based on credit information furnished by the borrower; such as financial analysis and ratio analysis of which the debt burden ratio is an important ratio to determine the repayment capability of the borrower.

Debt burden ratio is the ratio of total monthly installment of credit card or loan and total income of the customer.
Debt burden ratio = (Total monthly installment of card or loan/ Total Income)*100 It is very important for assessing customer payment ability .
We can know through this calculation that customer is able or unable to pay his installment (Minimum dues in credit card).