FOIR
Fixed Obligation to Income Ratio — the percentage of your net monthly income going towards all EMIs combined. Banks cap this at 40-55%.
Definition
FOIR is the metric banks use to determine your home loan or personal loan eligibility. It is the ratio of all your existing and proposed EMIs to your net monthly income. Most Indian banks cap FOIR at 40-55% depending on income level and credit profile.
If your net income is ₹1 lakh and you have ₹10K of existing EMIs, a 45% FOIR cap means you can support an additional ₹35K of EMI — which translates to ~₹39 lakh of home loan at 9% over 20 years. Aim for 80-85% of your FOIR-eligible maximum to leave buffer for rate hikes and emergencies.
Formula
Max EMI = (FOIR × Net Income) − Existing EMIsExample
₹1.2 lakh net income, ₹5K existing EMI, 45% FOIR → Max EMI = ₹49,000 → supports ~₹54 lakh loan at 9% / 20 years.
Calculators that use this
House Affordability
Find the maximum home price you can afford based on your income, existing EMIs, and down payment using bank-style FOIR rules.
Open calculatorLoan Eligibility
Find out the maximum home loan you can get based on your monthly income, existing obligations, and loan tenure.
Open calculatorEMI
Calculate the equated monthly installment (EMI) for any loan — home, car, or personal — with complete amortization breakdown.
Open calculatorRelated terms
See all 30 glossary terms or read our Methodology for how we source these definitions.