FOIR

FOIR — Fixed Obligation to Income Ratio — is the share of your gross monthly income already committed to fixed monthly outflows: existing EMIs, credit-card minimum dues, rent (in some banks' calculations), and the proposed EMI for the new loan you are applying for. Indian banks use FOIR as the primary affordability filter for home, personal, and auto loans, so understanding it is essential before you start house-hunting.

The calculation is straightforward: (Total monthly fixed obligations + proposed new EMI) ÷ Gross monthly income × 100. Most banks cap FOIR at 50–55% for salaried applicants and 60–65% for self-employed with higher incomes. On a ₹1,50,000 monthly salary with ₹20,000 in existing EMIs, a 55% FOIR ceiling allows only ₹62,500 more in new EMI — which maps to roughly a ₹72 lakh home loan at 8.5% for 20 years.

There is no RBI-mandated FOIR number — it is a bank-level underwriting policy. PSU banks tend to be stricter; private banks and NBFCs sometimes stretch FOIR in exchange for higher rates or a co-applicant.

Use our EMI affordability calculator to enter your income and existing obligations and see the maximum EMI and loan amount your FOIR will support.