LiveMint | 10/06/2020 10:45 PM | Click to read full article
Banks and NBFCs have tightened lending norms due to the economic uncertainty in the country. Many individuals have seen pay cuts and layoffs. Lenders are also worried that their non-performing assets (NPAs) could increase. Lenders look at the sector and company in which the applicant works, their age, income, existing loans, credit score, and so on. They also look at a parameter called fixed obligation to income ratio (FOIR) – where it considers the applicant's current EMIs to determine eligibility.