FOIR & Eligibility
High FOIR — How Existing EMIs Quietly Kill Your Loan Eligibility
FOIR (Fixed Obligations to Income Ratio) caps how much of your income can go to EMIs. Most lenders cap at 50–70%. Here's how to compute it and what to do if you're over.
How FOIR is calculated
- Existing home loan EMI: ₹45,000
- Existing car loan EMI: ₹12,000
- Existing personal loan EMI: ₹8,000
- Credit card minimum due (5% of limit utilised): ₹5,000
- Total existing obligations: ₹70,000
- If net income is ₹1,50,000 — current FOIR is 47%, leaving ~10–23% headroom
Lender FOIR caps (typical, indicative)
Public-sector banks
Usually 50% FOIR cap. Conservative — they leave 50% of net income for living expenses and buffer.
Private banks
Usually 55–60% FOIR cap. Slightly more flexible if banking and CIBIL are strong.
NBFCs
Usually 60–70% FOIR cap. Will go higher with collateral or strong cash flow.
Fintech lenders
Up to 70–75% FOIR, but at significantly higher pricing (18–30% p.a.).
Lower your FOIR
What to do if your FOIR is too high
- Prepay and close small existing loans — even a ₹5 L personal loan closure helps
- Increase the tenure of an existing loan to reduce its EMI (refinance if needed)
- Add a co-applicant with separate income — combined FOIR improves
- Shift the loan to a secured instrument (LAP) — lower rate, longer tenure, lower EMI
- Time the application after a salary hike or a high-profit ITR year
- Avoid applying for unsecured credit — go secured if FOIR is borderline
FAQ
Common questions
Does credit card utilisation count in FOIR?+
Most lenders count 5% of the credit card limit as a monthly obligation (the minimum due), regardless of how much you've actually spent. Some count 5% of the utilised amount. Either way, maxed-out cards hurt your FOIR — pay them down before applying.
Can I close a loan just before applying to reduce FOIR?+
Yes, but timing matters. The closure must reflect on your CIBIL (can take 30–45 days) before the new lender pulls your report. Apply for the closure, wait for the No Objection Certificate (NOC) and the CIBIL update, then approach the new lender.
Will the lender count my spouse's EMIs in my FOIR?+
Only if you're a co-borrower on those loans or your spouse is a co-applicant on this loan. If you apply individually, only your own obligations count — but the lender may still ask about household EMIs as a soft factor.
Next step
Get your file reviewed before you apply again.
Share basic details — a senior advisor will read your profile, diagnose what's blocking approval, and tell you exactly what to fix first.
- No CIBIL pull until strategy is agreed
- No blind portal submissions
- Review by a senior advisor — not a call-centre agent
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