FOIR (Fixed Obligation to Income Ratio): It is the percentage of your gross monthly income that goes towards fixed financial obligations like existing EMIs, credit card payments, rent, etc. Banks use FOIR to assess how much you can repay monthly. Generally, banks prefer FOIR to be less than 40-50% for approving new loans.
CIBIL Score: It is a 3-digit number between 300 and 900 that reflects your creditworthiness based on your past credit history. A higher score (750 or above) indicates good credit behavior and improves chances of loan approval with better terms. Scores below 600 may lead to rejection or stricter lending terms.
