What is FOIR in loans?


I contacted a public sector bank for taking a home loan. When I enquired about the eligibility criteria, the customer care executive told me that they can offer maximum 50% FOIR. Though they explained it to me, I didn’t get the term. What is FOIR?


FOIR (Fixed Obligations to Income Ratio) is a popular parameter which banks use to determine loan eligibility. As per bank’s eligibility criteria, the borrowers should restrict all their fixed obligations including the currently applying loan EMI to 50% of his monthly income. Or in other words, considering that 50% of your income is required for your living, banks would see that all your monthly loan obligations / liabilities should be only 50% of your monthly income.

If the calculated ratio is more than the bank’s benchmark, ie ( 50% here), then the bank would restrict the applying loan amount in a way that including the current EMI, your monthly liabilities would come within 50% of your monthly income.

To put it in a simple way, say suppose if your monthly income is Rs.50000/- and you have other loans with EMI 15000. In this scenario, bank would approve you a loan which EMI would be maximum 10000 (if they mentioned FOIR as 50%).

FOIR ratio vary from bank to bank and from case to case, but on an average it would be with 40% to 55%


JFYI, few banks offers 60% FOIR for an individual who has done master’s degree e.g. LIC housing finance.



Yes. most banks offer up to 60% FOIR or even more in some cases for professionals. Though some banks advertise that they go up to 60% FOIR for master degree holders, it will not happen in reality if you don’t have a stable job in an MNC or a government job. But if you are a professional ( for example- a doctor), you will get 60% FOIR. Established entrepreneurs also get 60% and above based on the transactions they have wit the bank and their company financials.This vary a lot and is subject to the discretion of credit managers






ICICI BANK will provide 60% FOIR for salaried as well as for Self Employed.
They go for combined LTV up to 125% for Self employed in that case if your valuation is good you will get more than 60 % FOIR.

For ICICI Home Loan Contact me on 9561507186


Hi Sohini,

Your loan eligibility is usually calculated by applying Fixed Obligations to Income Ratio (FOIR). This is the ratio of your loans to your income. Most banks restrict FOIR to a maximum of 45%-50% of the borrower’s monthly income. That means, considering that one needs around 45%- 50% of their income for their personal expenses, all fixed obligations including the Home Loan applied for, should be restricted to a maximum 45%-50% of his gross monthly income. The loan amount sanctioned is often calculated as below:

Loan Eligibility = Gross monthly income * 45%-50% – all other obligations

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BB Expert


Axis bank offers upto 70% foir depends on monthly net salary.
Below 20,000 = 60% foir
Upto 1,00000= 65% foir
Above 1,00000= 70% foir