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DSCR — Debt Service Coverage Ratio
A ratio that measures whether your income is sufficient to service all your loan obligations. A DSCR above 1.25 is typically required for loan approval.
DSCR = Net Operating Income ÷ Total Debt Service (all loan EMIs and interest). A DSCR of 1.0 means your income exactly covers your debt payments — most lenders require 1.25–1.50 to provide a safety margin.
For LAP specifically, the DSCR is calculated on rental income vs the proposed EMI. A DSCR below 1.0 almost always results in rejection or a significantly reduced loan amount.
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