What is FOIR and how does it affect loan eligibility? +
FOIR (Fixed Obligation to Income Ratio) is the percentage of your income that banks allow as total EMI obligations. Most banks cap this at 40–50%. If your salary is ₹50,000 and existing EMIs are ₹5,000, the bank allows max ₹20,000 (40% of ₹50K = ₹20K, minus ₹5K existing = ₹15K for new loan).
What salary do I need for a ₹50 lakh home loan? +
For a ₹50L home loan at 8.5% for 20 years, the EMI is approximately ₹43,400. At 40% FOIR, you'd need a minimum salary of ~₹1.08L/month (₹43,400 ÷ 0.40). With other existing EMIs, the required salary would be higher. Use the calculator above for your exact scenario.
How can I increase my loan eligibility? +
Close existing loans or credit card dues to reduce FOIR. Improve your CIBIL score above 750 for better rates. Add a co-applicant (spouse) with income. Choose a longer tenure to reduce EMI. Some banks also consider rental income or business income in addition to salary.