Project Multi-Year DSCR & Debt Sizing Calculator
What is my multi-year Debt Service Coverage Ratio (DSCR) schedule and does it satisfy bank credit underwriting covenants?
Financial Inputs
Average DSCR
A
Minimum (Trough) DSCR
1.52x
Credit Committee Acceptance Status
Prime Bank Grade (Average DSCR >= 1.50)
Key Financial Takeaways
- Across the 5-year loan horizon, the project achieves an Average DSCR of 1.75x and a trough Minimum DSCR of 1.52x. The facility meets standard institutional underwriting benchmarks (1.25x), confirming robust cash flow buffer against term debt service.
Frequently Asked Questions
Why do banks scrutinize Minimum DSCR more than Average DSCR?
Even if an average DSCR looks healthy at 1.6x, a trough year where DSCR dips below 1.0x indicates an imminent default risk during that specific financial year. Credit committees structure loan amortizations, balloons, or moratoria specifically to ensure Minimum DSCR stays above 1.20x-1.25x.
Calculators on this platform provide indicative mathematical estimations based on industry-standard financial appraisal models (including Tandon Committee Method II, Nayak Turnover Method, and standard compound amortisation).
They do not constitute a formal facility sanction, credit commitment, or legal advisory from SME PAISA or any partner banking/NBFC institution. Final terms, interest margins, security stipulations, and credit sanctions remain strictly subject to formal credit appraisal, audited balance sheet verification, CMA Data assessment, and risk committee approval by institutional lenders.
Need structured debt financing beyond standard bank models?
Our ex-banker team structures facilities from ₹2 Cr to ₹100 Cr+ across 50+ banking & NBFC partners, ensuring optimized pricing and covenants.