DSCR Calculation in Project Report
Plain-language guide to debt service coverage ratio in MSME project reports—what goes in the formula and how to present it.
DSCR (Debt Service Coverage Ratio) shows whether projected cash accruals can cover principal and interest. In project reports it is usually shown year-wise after P&L and repayment assumptions.
Credlook.in provides project report preparation and documentation software from customer-provided details. We are not a bank, NBFC, lender, or government scheme authority.
Typical DSCR building blocks
- PAT (or cash profit components as required by the bank format)
- Add back depreciation and interest (as per your schedule logic)
- Divide by principal + interest for the year (term loan)
- For WC-only files, interest service coverage may be emphasised instead
Presentation for bank files
Show the formula once, then a clean year-wise table. Tie interest and principal to the same repayment schedule used in cash flow—inconsistency is a common rejection trigger.
FAQ
What DSCR do banks want?
Thresholds vary by bank and product. Present year-wise DSCR honestly; do not invent cover. Confirm the branch benchmark.
Credlook.in provides project report and CMA documentation software from customer-provided details. We are not a bank, NBFC, lender, or government scheme authority.