What is FOIR? Are you aware of the term ‘FOIR’? The full form of FOIR is Fixed Obligations to Income Ratio. It is a famous lending parameter that banks use to compute the personal loan eligibility of applicants. FOIR is also known as the debt to income ratio. If the FOIR score of a loan applicant is lower and varies between 40 to 50%, he/she can get loan approval. Using the FOIR calculator, it is possible to know about the personal loan eligibility of an applicant. Read on and know more! An example to showcase and understand FOIR better Let’s suppose if your income is Rs.30,000; your total obligations are Rs.19,000. Now, if you apply for a personal loan, your application request may be rejected. You may be taken for a ride as you have paid your EMIs on time and approved for a loan earlier. What’s wrong? It may be because your FOIR may be more than what is the acceptable limit of 40-50%. FOIR Calculation = (Sum of current obligations/Monthly income) x 100 In this case, 19,000/30,000 x 100 = 63.3%. Thus, your FOIR is 63.3%, much more than a higher acceptable range between 40-50%. Since your FOIR is more than 50-55%, your new application for a personal loan has been rejected by your lender. Hence, if you want to get instant personal loan eligibility, you will need to work on your debt to income ratio or FOIR. The lower you are able to keep your debt to income ratio or FOIR, the easier it will be for you to get instant personal loan approval. What’s more, doing that can also help you keep your CIBIL score higher – an indispensable factor required for the loan approval. Bajaj Finserv offers pre-approved deals on personal loans, home loans and more. It is to simplify the processing of the loan and make it faster. You can check out your pre-approved loan offers today after sharing your basic details like your name and mobile number. Must Read: Know How You Can Calculate Loan Eligibility By Using FOIR Calculator
1 Comment
4/20/2021 03:19:08 pm
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AuthorAman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management. |