FOIR meaning
What is FOIR? How lenders use FOIR to assess loan eligibility.
FOIR (Fixed Obligation to Income Ratio) is the percentage of your net monthly income that goes toward existing and proposed EMIs.
Lenders typically cap FOIR at 50–60%. So if your net income is ₹1L and FOIR cap is 50%, total EMI (existing + new) should not exceed ₹50,000.
Lower FOIR leaves more surplus for living expenses and is preferred by lenders.