Glossary term
FOIR
Share of your net monthly income used to service all EMIs. Banks typically cap home loan eligibility at 40–55% FOIR.
FOIR (Fixed Obligation to Income Ratio) is the percentage of a borrower's net monthly income used to pay all existing and proposed EMIs. Indian banks typically cap home-loan FOIR at 40% for lower-income borrowers and up to 55% for higher-income borrowers.
Lower FOIR = higher loan eligibility. If you have existing car or personal loans, they eat into your FOIR headroom and reduce your home loan eligibility.
See also