Types of loans and coverage ratios relevant
Normally person take 2 types of loan
1.OD/CC (overdraft/cash credit)
2.TL (Term Loan)
OD/CC 
Term Loan 
They are taken to meet working capital requirement of business i.e. to meet day to day expenses of business 
They are normally taken for purchasing fixed assets of business 
There is no repayment of OD/CC. Only interest amount is to be paid, not the principal
They are like negative balance in bank account. Interest is charged only on amount withdrawn

There is proper repayment of both principal an interest amount. It is normally done in equal quarterly or monthly instalments (EMI) 
Interest Coverage Ratio(ICR) is used to measure repayment

Debt Service Coverage Ratio (DSCR) is used to measure repayment 
Formula for Interest Coverage Ratio(ICR)
(PAT+Interest Exp +Depreciation)/ Interest Repaid

Formula for Interest Coverage Ratio(ICR)
(PAT+Interest Exp +Depreciation) / Interest and Principal Repaid 
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