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Question: What is the ideal value for debt to income ratio? Why is it important?

Answer: A debt to income ratio shows the balance you maintain over your debt and income. Financial experts suggest a DTI ratio of around 35% as ideal although the lower your DTI number the better it is. A low debt to income ratio shows that you maintain a good balance between income and debt while a high DTI shows you have too much debt compared to your total income. Since Banks and NBFCs use DTI along with credit score to determine whether to offer or reject loans to potential borrowers, managing your DTI and keeping it lower can go a long way in increasing your chances to avail for a loan in the future as and when needed.



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Question: What is the ideal value for debt to income ratio? Why is it important?
Answer:

A debt to income ratio shows the balance you maintain over your debt and income. Financial experts suggest a DTI ratio of around 35% as ideal although the lower your DTI number the better it is. A low debt to income ratio shows that you maintain a good balance between income and debt while a high DTI shows you have too much debt compared to your total income. Since Banks and NBFCs use DTI along with credit score to determine whether to offer or reject loans to potential borrowers, managing your DTI and keeping it lower can go a long way in increasing your chances to avail for a loan in the future as and when needed. Source: CoolInterview.com



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