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' dscr ' for commercial mortgage lending ??

Tax queries 415 views 1 replies

PALASH

Nothing

2000 Points Joined June 2012

' DSCR ' FOR COMMERCIAL MORTGAGE LENDING .
Respected Members,,

Actually now i am preparing a projected profit & loss a/c balance sheet & cma data (5 years ) of a SSI undertaking ( manufacturing business as well as labour jobs ) regarding loan purpose . That's why i need DSCR ratio of that concern. Business was started 2 years ago & now they needs some new plant & machinery for running that business & that's why proprietor of that business applied for a loan of Rs 10 LACS .

question:-
1) Perfect DSCR as far as bank's requirement is concern ??

Thanks
Regards.

Replies (1)

Manoj Mehta

Head Of Department (Accounts & Finance)

1479 Points Joined March 2009

Dear Palash, debt service coverage ratio should also be more than 1. It shows your ablility to payoff your debts. You can read more on it on investopedia on google. Much more it is better it will be. I hope ans will help your urgent need. Best wishes to you.