Question 1

Is Finoxa Finance a bank or a lender?

Accepted Answer

No. We are a loan consultancy and distribution partner. We do not lend our own money. We assess your profile, match it against the underwriting criteria of our 40+ partner banks and NBFCs, and manage your application through to disbursal. The loan agreement is always directly between you and the lending institution, and every credit decision, rate and term is theirs alone.

Question 2

What do you charge for your services?

Accepted Answer

Our advisory, eligibility assessment and documentation support are free to you. We are compensated by the lending institution as a distribution commission once a loan is disbursed. We never ask for an advance fee, a processing payment or a "file charge" — if anyone claiming to represent us requests money upfront, please report it to us immediately.

Question 3

How long does the whole process take?

Accepted Answer

It depends on the product. A gold loan disburses in 30–60 minutes. Personal and car loans typically take 24–48 hours for salaried applicants with complete documents. Business loans take 3–7 working days. Home loans, mortgage loans and loan against property take 10–21 working days, almost entirely because of legal and technical diligence on the property rather than income assessment.

Question 4

Will submitting an enquiry affect my credit score?

Accepted Answer

No. Submitting an enquiry to us involves no credit bureau pull, so there is no effect on your score. A hard enquiry is registered only when you authorise us to submit a formal application to a specific lender — and because we pre-match your profile first, you make far fewer applications than if you approached lenders individually. Multiple applications in a short window is one of the most common causes of avoidable score damage.

Question 5

Which cities do you operate in?

Accepted Answer

We serve applicants across India. Our advisory, documentation and application management are handled remotely, so your location is not a constraint. Products requiring physical verification — gold loans and property-backed loans — are dependent on our lending partners’ branch presence, which covers all metros, tier-1 and most tier-2 cities.

Question 6

What happens to my personal data?

Accepted Answer

Your details are used only to assess your eligibility and to submit applications to lenders you specifically authorise. We do not sell data, and we do not share it with third parties for marketing. Documents are stored encrypted and retained only as long as regulation requires. You can ask us to delete your data at any time by writing to us, subject to statutory record-keeping obligations. Full detail is in our privacy policy.

Question 7

Can I apply if I have been rejected by a bank before?

Accepted Answer

Yes, and this is a significant part of what we do. Rejections usually stem from a specific, identifiable mismatch — an income document the lender could not accept, a FOIR breach, a bureau error, or simply applying to a lender whose policy excludes your employer or profession. We identify the actual reason, address what can be fixed, and route you to lenders whose criteria your profile genuinely meets rather than reapplying blind.

Question 8

What is FOIR and why does it limit my loan amount?

Accepted Answer

FOIR — fixed obligation to income ratio — is the share of your net monthly income already committed to EMIs and other fixed obligations. Most lenders cap total FOIR at 50–55% after the new loan. If you earn ₹1,00,000 net and already pay ₹25,000 in EMIs, a lender working to a 55% ceiling will only permit a new EMI of about ₹30,000, which in turn caps the amount you can borrow regardless of your credit score.

Question 9

Does adding a co-applicant increase how much I can borrow?

Accepted Answer

Yes, and it is usually the most effective single step. A co-applicant’s income is added to yours for FOIR calculation, which directly raises the eligible amount. For home loans, a co-applicant who is also a co-owner can additionally claim their own Section 80C and 24(b) deductions, effectively doubling the tax benefit. The co-applicant’s credit score is assessed too, so a co-applicant with a weak bureau record can reduce rather than help your case.

Question 10

What minimum credit score do I need?

Accepted Answer

As a working guide: 750+ secures the best pricing from any lender; 700–750 is approved by most banks at a modest premium; 650–700 generally means NBFC options at higher rates; below 650 most mainstream lenders decline unsecured products. Secured loans are more forgiving — gold loans do not assess credit score at all, and property-backed loans weigh the security heavily.

Question 11

How accurate is your eligibility checker?

Accepted Answer

It applies the same criteria our lending partners use — age bands, employment category, minimum income, FOIR ceiling and income multiplier — against the product you select, so it is a genuine indicative assessment rather than a marketing gesture. It is not a sanction. The final decision depends on document verification, your full bureau report, and lender-specific policies on employer category and profession.

Question 12

I am self-employed with income that varies. How is that assessed?

Accepted Answer

Lenders average your declared income over two to three years of filed ITRs rather than taking the best year, and they add back depreciation and certain non-cash charges. Banking turnover and GST filings are then cross-checked against the declared figure. Consistency matters more than magnitude — a steady ₹15 lakh across three years assesses better than ₹8 lakh, ₹22 lakh, ₹15 lakh. Filing returns on time, every year, is the single most valuable thing a self-employed borrower can do for future eligibility.

Question 13

What happens after I submit an enquiry?

Accepted Answer

An advisor calls you within one working day to confirm your requirement and profile. We then run your details against our partner lenders’ criteria and present the offers you genuinely qualify for, with the rate, processing fee, prepayment terms and total cost of each. Once you choose, we compile and pre-verify the document set, submit the application, and track it through credit approval to disbursal, updating you at each stage.

Question 14

Can I track my application status?

Accepted Answer

Yes. Every enquiry receives a reference number in the format FL-XXXXXXXX. Quote it when you call or email and your advisor can give you the current stage immediately. For applications in progress we also send status updates by SMS and email at each milestone — submission, credit approval and disbursal.

Question 15

What if my application is rejected?

Accepted Answer

We tell you the actual reason, which lenders rarely disclose directly. Where it is fixable — a bureau error, an income document the lender could not accept, a FOIR breach that a co-applicant would resolve — we address it and reapply to an appropriate lender. Where it needs time, such as a credit score requiring six months of clean conduct, we tell you that plainly rather than burning further enquiries on your bureau report.

Question 16

What documents do I need to keep ready?

Accepted Answer

For every application: PAN, Aadhaar and address proof. Salaried applicants add three months of salary slips, six months of salary account statements and Form 16. Self-employed applicants add two to three years of ITR with computation, audited financials, twelve months of current account statements and GST returns. Property-backed loans additionally require the full chain of title, approved plan, occupancy certificate and encumbrance certificate.

Question 17

Do I need to submit physical documents?

Accepted Answer

For most personal, business and car loans the entire file can be submitted digitally — scanned copies plus Aadhaar-based e-KYC and e-signature. Property-backed loans require original title documents for legal verification, though these remain in the lender’s custody only for the duration of the verification and mortgage registration.

Question 18

My documents are in a different name spelling. Is that a problem?

Accepted Answer

It can be, and it is worth fixing before applying. Name mismatches between PAN, Aadhaar and bank records are one of the most common causes of last-minute delays, because lenders must satisfy KYC norms exactly. If your PAN and Aadhaar differ, correct one of them first — the correction takes two to three weeks, whereas a file rejected on KYC grounds can cost you a month plus a fresh credit enquiry.

Question 19

How is EMI calculated?

Accepted Answer

EMI is calculated using the reducing-balance formula: EMI = P × r × (1+r)^n ÷ [(1+r)^n − 1], where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months. The EMI amount stays constant, but its composition shifts — early instalments are mostly interest, later ones mostly principal. This is why prepaying early saves far more than prepaying late.

Question 20

Is the EMI shown by your calculator the final figure?

Accepted Answer

It is an accurate mathematical result for the inputs you provide, and it is the same calculation your lender uses. The final EMI on your sanction letter may differ slightly because of the actual rate offered to your profile, the processing fee treatment, and broken-period interest between the disbursal date and your first EMI date. Treat the calculator output as a reliable planning figure, not a quotation.

Question 21

Should I choose a longer tenure to reduce my EMI?

Accepted Answer

A longer tenure lowers the monthly outflow but increases total interest substantially. On ₹10 lakh at 10.5%, a 3-year tenure costs about ₹1.71 lakh in interest; a 7-year tenure costs about ₹4.14 lakh. Choose the shortest tenure whose EMI you can service comfortably even in a difficult month. Where longer tenure is necessary for affordability, prioritise a lender with no prepayment penalty so you can compress it later.

Question 22

Can I change my EMI amount after disbursal?

Accepted Answer

Most lenders allow a step-up or step-down of EMI once or twice during the tenure, and many home loan products offer an explicit EMI-increase facility. Part-prepayment also reduces either the EMI or the tenure — you usually get to choose which, and choosing tenure reduction saves more interest. Any change generally attracts a small documentation or conversion charge.

Question 23

What is a processing fee and is it negotiable?

Accepted Answer

A processing fee is a one-time charge for underwriting your application, typically 0.5%–3% of the sanctioned amount plus GST. It is often negotiable, particularly if you have a strong profile or an existing relationship with the lender, and it is frequently waived entirely during promotional periods. Always ask — and always factor it into your comparison, because a lower rate with a high fee can cost more overall.

Question 24

Will I be charged for repaying my loan early?

Accepted Answer

It depends on the product. Floating-rate home loans and other floating-rate loans to individuals carry no prepayment penalty — this is mandated by the RBI. Personal loans commonly charge 2%–5% of the amount prepaid, often reducing to nil after 12 EMIs. Gold and education loans are generally free to prepay. Always confirm the prepayment terms in writing before signing, especially if you expect to repay early.

Question 25

Are there charges I should watch out for?

Accepted Answer

Ask specifically about: the processing fee and whether it is deducted from disbursal; any insurance premium bundled into the loan (often optional despite being presented otherwise); the prepayment lock-in period; the foreclosure charge as a percentage of outstanding principal; EMI bounce charges; and legal or valuation fees on property-backed loans. Request the complete schedule of charges in writing — every regulated lender must provide it.

Questions, answered properly

General

Eligibility

Application process

Documentation

EMI & repayment

Fees & charges