By:- Harsh Grover, Co-founder, LoansJagat
Multiple EMIs running together can push your Fixed Obligation to Income Ratio, or FOIR, past what lenders are comfortable with, even when no single EMI feels like a burden on its own. Most lenders turn cautious once FOIR crosses 50%. Past 60%, outright rejections become common. It doesn’t take a big-ticket purchase to get there, either. A wedding in the family, some festive shopping, one hospital bill- any of these can tip a manageable EMI load over that line before you’ve noticed. Here are five ways by Harsh Grover, Co-founder, LoansJagat to stay ahead of it:
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Work out FOIR every month, not just when applying for something new. Add every EMI, minimum credit card dues, and any rent or insurance premium a lender counts, then divide by take-home income. Under 40% is comfortable for most banks, and 40-50% still clears most desks, though the exact cutoff varies by lender and income band. A number that’s crept up two months running is worth acting on before a rejection forces the issue.
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Sort EMIs by rate, not balance. Bank personal loans generally carry lower interest rates than NBFC loans, though the gap depends on credit profile and lender. Clearing the costliest EMI first, even if it’s the smallest balance, usually saves more total interest than chasing the biggest number on paper.
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Watch the repo rate before assuming EMIs will rise. RBI held the repo rate at 5.25% at its August 2026 review, extending a pause after a year of cuts. Floating EMIs tied to this benchmark probably won’t move before the next bi-monthly meeting, though that can change if inflation surprises the committee.
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Look at whether merging high-cost EMIs makes sense. A debt consolidation loan, or a loan against property for those who own one, can fold two or three expensive EMIs into a single lower-rate payment stretched over a longer tenure. A longer tenure can mean paying more interest overall even at a lower rate, so it helps to run the actual numbers rather than go by EMI size alone. Comparing options through LoansJagat before signing anything usually makes that comparison faster.
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Set EMIs to auto-debit a day or two before the due date, not on the date itself. Banks process these in batches. A delay on their end, even a small one, can bounce a payment that was technically paid on time. A missed EMI can affect your CIBIL score and worsen your FOIR standing on future applications, so this one small habit ends up doing a lot of work.
A borrower who tracks FOIR, ranks EMIs by cost, and automates payments is usually in a stronger position than one relying on memory and good intentions alone.
