Category: Loan Ratio

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How To Calculate Security Coverage Ratio ?

Security Coverage Ratio  - This is the most required terminology in the field of loan assessment. Majority of loan inclusive of Term loan and SODH limits are assessed based on this formula. Security or asset coverage ratio is the measurement...

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How To Calculate Debt Service Coverage Ratio (DSCR) ?

How To Calculate Debt Service Coverage Ratio (DSCR) ? - Debt service coverage ratio (DSCR) a very important rile for assessment in giving loan to any firm, individual etc which is calculated to measure potential borrower's debt.This is sometime also...

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How To Calculate Loan Installment to Income Ratio (IIR) ?

Installment to Income Ratio  is used to calculate the loan eligibility of the customer. This IIR  denotes the portion of the customer's monthly installment on the Home Loan or any other loan taken. As a rule of thumb, the banks use...

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How To Calculate Loan to Value ratio LTV / LCR ?

Calculate Loan to Value ratio (LTV). LCR stands for the Loan to Cost ratio. LTV ratio used by banks  to calculate the loan amount that a person is eligible for on the total cost of the property. There is a...

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How To Calculate Fixed Obligation to Income Ratio (FOIR) in Loans ?

Fixed Obligation to Income Ratio is an important parameter in Loan calculation while maintaining Rating Chart.  Procedure for FOIR Calculation : In FOIR calculation, the Bank takes into account the installments of all other loans previously availed of by the...

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