FOIR Decide How Much Loan Banks Will Give You #shorts
The Fixed Obligations to Income Ratio (FOIR) is a metric used by banks and other financial institutions to assess an individual's loan eligibility. FOIR is calculated by considering fixed monthly expenses and by keeping out statutory deductions, such as Provident Fund, Investment Deductions, and Professional Tax. Although added obligations, including rent, may be deemed fixed obligations depending on income, a FOIR indicates a candidate's disposable income that they can use to repay existing and new debts.
Disclaimer:- There are some factors that a bank looks at before they sanction a personal loans
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