FOIR: how much EMI your income supports
The fixed obligations to income ratio — total EMIs divided by net monthly income. Lenders use it to decide how much they will lend. It is the difference between a loan being approved and being declined, and between a household being comfortable and being stretched.
What it means
The fixed obligations to income ratio — total EMIs divided by net monthly income. Lenders use it to decide how much they will lend.
Why it matters to a household
It is the difference between a loan being approved and being declined, and between a household being comfortable and being stretched.
Where it trips people up
Treating the lender's ceiling as a target. Banks will go to roughly 50%; households that stay comfortable through job changes and emergencies usually stop nearer 40%.
In an Indian household
Existing EMIs count, including ones on a spouse's loan if they are a co-borrower. Credit card minimum dues can count too, depending on the lender.
Where FamTally comes in
FamTally is a free AI-driven money manager built for Indian families. It holds your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and lets you ask an assistant questions about your own numbers rather than looking up general advice. Everything on this page is the kind of thing it works out for you automatically.
Stop doing this in a spreadsheet
FamTally keeps your loans, income, expenses, assets, insurance and goals in one place, forecasts five years ahead, and answers questions about your own numbers. Free, and built for Indian families.
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FOIR: how much EMI your income supports
The fixed obligations to income ratio — total EMIs divided by net monthly income. Lenders use it to decide how much they will lend.
Why does it matter?
It is the difference between a loan being approved and being declined, and between a household being comfortable and being stretched.
What do people usually get wrong?
Treating the lender's ceiling as a target. Banks will go to roughly 50%; households that stay comfortable through job changes and emergencies usually stop nearer 40%.
Is there anything India-specific?
Existing EMIs count, including ones on a spouse's loan if they are a co-borrower. Credit card minimum dues can count too, depending on the lender.