Along with the Cibil score and other financial histories Upward also depends on the methods of FOIR to calculate the amount of loan you are eligible to get along with the EMI slots that you will be given to repay. Now you must be wondering what is this FOIR thing. Let’s explain it to you better.
With so many microfinance institutions (MFIs) and non-banking finance companies (NBFCs) offering loans to the general public in India, it has become more important than ever before for a lender to determine whether an individual can repay a loan.
FOIR stands for Fixed Obligations to Income Ratio, which is a derivation of the ratio of a consumer's yearly fixed obligations and his/her income. It is generally used as a parameter by banks to find out the eligibility of an individual for a loan and also indicates how much money that particular individual can borrow.