Loan products The right loan, matched to where your business is. Explore all products

Working capital

Day-to-day liquidity, flexible credit lines, and financing against your receivables.

Growth & assets

Term loans for expansion, new equipment, and the longer horizons that growth needs.

Specialized MSME finance

Unsecured lending, MSME and Udyam options, trade finance, and funding that follows your scheme eligibility or your daily takings.

Industries Lenders who understand how your sector borrows. Explore all sectors

Trade & production

Sectors driven by stock cycles, machinery, and the throughput that keeps them moving.

Services & spaces

Sectors that grow on expertise, footfall, and the fit-out of the spaces they work in.

EMI calculator Know your monthly number before you borrow. Calculate your EMI

Plan your loan

Run the numbers and read your file the way a lender would, before you approach one.

Guides and tools

Plain guides to schemes, eligibility, documents and rates, plus every calculator in one place.

Capnix Who we are, how the process runs, and why it costs you nothing. See how it works

About Capnix

The team behind your loan requirement, the way we work, and what we earn from it.

FOIR meaning: fixed obligations to income ratio explained

FOIR meaning: FOIR stands for Fixed Obligations to Income Ratio. It is the share of your monthly income already committed to fixed payments such as EMIs, including the new loan you are asking for. Lenders use it to judge whether you can carry one more instalment. A lower FOIR leaves more room to borrow.

Loan products, rates, and eligibility are determined by the lenders on our panel. Capnix is not a lender and does not lend its own capital. We run your loan journey end to end.

Last checked 02-Oct-2026

FOIR meaning and formula

FOIR = total monthly fixed obligations ÷ monthly income × 100.

Fixed obligations are every EMI you pay, plus the proposed EMI. Some lenders use gross income, some use net income. No RBI rule defines FOIR. It is lender practice, and each lender sets its own limit (No official definition).

How lenders use FOIR

FOIR is mostly used for individual and small proprietorship borrowers, where business income and personal income sit close together. For a company or a larger business, lenders lean more on DSCR, which works from the business's cash accruals.

Example

Example figures: monthly income of ₹2,00,000 and existing EMIs of ₹40,000. The new loan is ₹10,00,000 over 36 months at an example rate of 14%, so its EMI is ₹34,178 (Standard loan EMI formula).

FOIR = (₹40,000 + ₹34,178) ÷ ₹2,00,000 = 37.1%.

If that is above the lender's limit, a longer tenor lowers the EMI and so the FOIR.

DSCR: the cash-flow test for businesses.
Business loan eligibility and the eligibility calculator.

Frequently asked questions

What is the full form of FOIR?

Fixed Obligations to Income Ratio.

What FOIR do lenders accept?

It varies by lender and by income type. No regulator sets one number.

Does rent count in FOIR?

Some lenders count rent and other fixed payments; others count only loan EMIs. Ask the lender which method it uses.

Sources

FOIR is lender practice; no RBI or ICAI definition was found