Bank DSCR & Term Loan EMI Calculator
Project Finance & Credit Appraisal Model • Rabi Agrawal & Associates
Evaluate Bank Loan DSCR & Amortization Feasibility
Calculate Debt Service Coverage Ratio (DSCR), Cash Available for Debt Service (CADS), and term loan monthly EMI repayment schedules based on standard Indian commercial bank sanction benchmarks.
1Annual Operating Cash Inflows (CADS)
Annual net profit from P&L
Non-cash expense added back
2Annual Debt Servicing Obligations
12-month scheduled interest charge
12-month scheduled loan amortization
Project Finance Metric
ICR: 5.17xBank DSCR Ratio
Computed DSCR Multiplier2.17xPrime / Robust Coverage
Excellent debt servicing buffer exceeding project finance institutional benchmarks (≥ 1.50x). Qualifies for competitive interest rate spreads and faster bank sanction.
Cash Available (CADS):₹39,00,000
Total Debt Service:₹18,00,000
Interest Coverage (ICR):5.17x (EBIT / Interest)
< 1.00x
Critical Deficit
Operating cash flow cannot cover debt service. Immediate loan rejection or equity infusion required.
1.00x – 1.19x
Sub-Standard Margin
Thin cushion. Banks require heavy collateral (>100%), personal guarantees, or tenure extension.
1.20x – 1.49x
Standard Benchmark
Industry standard minimum for MSME term loans across SBI, PNB, Bank of Baroda & private banks.
≥ 1.50x
Prime / Project Finance
Institutional preferred tier. Qualifies for competitive interest rate spreads and faster bank sanctions.
Project Finance & Credit Appraisal
Frequently Asked Questions — Bank Loan DSCR & EMI
What is Debt Service Coverage Ratio (DSCR) and why do banks check it?
DSCR measures a company's ability to service its annual term debt obligations (principal repayment + interest) using its operating cash flows (Profit After Tax + Depreciation + Interest). Commercial banks (SBI, PNB, Bank of Baroda, HDFC) use DSCR as the primary credit risk indicator to determine if a project is viable and bankable.
What is the standard acceptable DSCR benchmark for MSME bank loans in India?
For MSME term loans and commercial credit, public and private sector banks generally require a minimum DSCR between 1.20x and 1.50x. An Average DSCR (ADASCR) of ≥ 1.50x is considered prime and qualifies for favorable interest rates and faster credit sanction.
What happens if a project's projected DSCR is below 1.20x?
If DSCR is below 1.20x, credit rating models flag the project as sub-standard or high risk. Banks may either reject the loan application or require higher promoter equity contribution, collateral security (>100%), personal guarantees, or an extended loan tenure to reduce annual EMI obligations.
Is working capital interest included in the DSCR denominator?
No. In standard Indian project finance appraisal, Cash Credit / Overdraft (CC/OD) working capital interest is not included in the term debt service denominator. Only contractual term loan interest and scheduled principal repayments are included in the DSCR denominator.
How does CA Rabi Agrawal & Associates assist with Bank Loan DPR and CMA Data?
We prepare bank-compliant Detailed Project Reports (DPR), CMA Data (5-year balance sheet, P&L, fund flow projections, Maximum Permissible Bank Finance / MPBF calculations), DSCR sensitivity models, and DCF enterprise valuations for industrial units, rice mills, manufacturing plants, and builders across Chhattisgarh and Odisha.
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