FOIR is a lender lens on how much of your income is already committed to fixed obligations (EMIs, and sometimes other fixed deductions). It helps decide the maximum EMI — and therefore loan — you might qualify for.
How FOIR is used
A simplified view: Max EMI ≈ (monthly income × FOIR%) − existing EMIs. If FOIR is 50% and income is ₹1 lakh with ₹10,000 existing EMI, EMI room is about ₹40,000. Banks also check credit history, employment stability and property documents — FOIR alone is not a sanction.
FOIR vs affordability
Passing FOIR does not mean the EMI is comfortable after rent, school fees and savings. EnrichReturns separates Home Loan Eligibility (FOIR-style capacity) from Home Affordability (cash for down payment and closing costs).
Practical tips
Lower existing EMIs before applying when possible. Stress a higher rate. Keep buffers for rate resets on floating loans. Confirm the lender’s actual FOIR policy — bands differ.