Loan Eligibility based on minimum DSCR norm checks whether the borrower’s cash flows are sufficient to service debt after considering principal and interest obligations. DSCR is especially important for term loans, project loans, and expansion finance where repayment depends on future operating cash flows. For example, if policy requires a minimum DSCR of 1.25, the borrower should generate at least 1.25 times the required debt service under realistic assumptions. This field matters because it converts financial projections into a repayment-capacity test. The common caution is to calculate DSCR using credible cash flows, correct repayment schedule, existing debt obligations, and stress scenarios. Inflated projections or ignored existing EMIs can make eligibility appear stronger than reality.