FOIR measures how much of a borrower’s monthly income is already committed to fixed obligations — existing EMIs, credit card minimum payments, rent, insurance premiums, and other regular financial commitments. Lenders use FOIR to determine how much additional EMI burden a borrower can comfortably handle.
Most lenders prefer FOIR below 50-60%, meaning at least 40-50% of income should remain after all existing and proposed EMI obligations. For home loans, lenders may allow slightly higher FOIR (up to 65%) due to the self-liquidating nature of the asset.
Lowering FOIR by closing existing debts or adding a co-applicant are effective strategies to increase loan eligibility.
FOIR directly determines how much additional EMI you can afford, and therefore the maximum new loan amount. Managing existing obligations is key to maximizing loan eligibility.
Nihal Fintech calculates FOIR for each client, identifies ways to reduce it (closing small debts, adding co-applicants), and matches them with lenders who have the most favorable FOIR policies.
Monthly EMI: --
Total Interest Payable: --
Total Payment (Principal + Interest): --
