The Debt-to-Income (DTI) ratio is a personal finance and credit assessment metric that measures the proportion of a borrower's gross monthly income consumed by monthly debt obligations — including loan EMIs, credit card minimum payments, and other recurring debt repayments — expressed as a percentage. Calculated as Total Monthly Debt Payments ÷ Gross Monthly Income × 100, the DTI is one of the primary criteria used by Indian banks and NBFCs to assess a borrower's repayment capacity when evaluating home loan, personal loan, and auto loan applications. A lower DTI indicates a healthier financial position and greater borrowing headroom, while a high DTI signals that a borrower is already stretched and may struggle to service additional debt. RBI guidelines and internal lending policies of most Indian lenders typically favour borrowers with a DTI below 40–50%. For investors on Ventura Securities who use leveraged products such as margin trading or loans against securities, monitoring personal DTI is important for ensuring that investment-related borrowing remains within prudent debt serviceability limits.
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