Loan

FOIR

Also known as: Fixed Obligation Income Ratio, Debt Service Ratio, EMI to Income Ratio

Fixed Obligation to Income Ratio - Percentage of monthly income going towards fixed obligations like EMIs.

Detailed Explanation

FOIR (Fixed Obligation to Income Ratio) measures the percentage of your monthly net income that goes towards servicing existing and proposed EMIs. Lenders typically prefer FOIR below 35-45% for home loans and 50-60% for personal loans. A lower FOIR indicates better repayment capacity and increases loan approval chances.

Related Calculators

Loan EMI Calculator

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Calculate loan EMI, total interest, and view amortization schedule for all types of loans

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Home Buying Journey - All-in-One Calculator

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Plan your home purchase with affordability, eligibility, EMI, stamp duty, tax benefits, rent vs buy analysis in one place

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Related Terms

EMI

Equated Monthly Installment - Fixed monthly payment for loans comprising principal and interest.

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Personal Loan

Unsecured loan based on income and credit score, requiring no collateral.

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