Your DSCR (Debt Service Coverage Ratio) determines whether banks approve your business loan. Most Indian banks require a minimum 1.25 DSCR.
The Formula
DSCR = Net Operating Income / Annual Debt Service (EMI x 12)
Quick Benchmark Table
| DSCR | Loan Status |
|---|---|
| < 1.0 | Rejected |
| 1.0 - 1.25 | Risky / Collateral needed |
| 1.25 - 1.5 | Approved |
| > 1.5 | Excellent terms |
How to Improve Your DSCR
- Pay off short-term loans first
- Choose longer repayment tenure
- Include all income streams (salary + rental + business)
- Add a co-borrower with income
Free DSCR Calculator
Handles both business loans and commercial real estate DSCR with Indian banking benchmarks.
Originally published at GlobalInfoWiki
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