Home Discover Journals What Lenders Look For in Your Bank Statement

What Lenders Look For in Your Bank Statement

By Finserv MARKETS - Sep 18,2020
Views Icon91 Views 0 0 Comments

(1 page reviews)

What Lenders Look For in Your Bank Statement

Bank Statement is one of the first documents that lenders ask for when taking decisions on loan applications. It is the single most important document that can decide if one will get a loan or not. It can prove to be more important than even your CIBIL score in deciding whether one’s loan application will get approved. Poor banking behaviour can override even an excellent credit score in decisioning of one’s loan application.

Why is a bank statement so important while availing credit?

  1. Indicates income of an individual

Bank statements reflect the income earned by an individual. Income is one of the key factors in determining the amount of credit one is eligible for. Also, credit is granted to individuals having a steady source of income. Bank statements help lenders to assess both the consistency of income as well as the amount of income earned by an individual.

  1. Banking Habit

Lenders look for how much funds do you maintain in your bank account on an average. This provides insights to them with respect to income being sufficient for managing regular expenses. Individuals who maintain a good bank balance are looked at in a positive light as it indicates income level of an individual is more than sufficient to manage regular expenses.

  1.  More insightful than credit bureaus

Bank statements reveal a lot more than credit bureaus when it comes to recent credit behaviour of an individual. Bank statement provides details on EMIs not being honoured on due dates which credit bureaus do not provide. Bank statement provides up to date information (up to the date of loan application) whereas credit bureaus generally have a 30-day lag. Recent borrowings are more likely to show up in bank statements than credit bureaus. 

Apply Now

  1. Financial behaviour

Banking transactions and where the money is spent also provides great insights to lenders. Regular transfers towards investments & insurance premiums showcase prudent financial behaviour and helps one tick the right boxes with lenders. On the other hand, spending on discretionary purchases and not maintaining sufficient bank balances indicates financial indiscipline. 

  1. Validation of Personal Information

Bank statements also provide details like Address, Unique Identification number like PAN, Email ID which can be cross checked with details provided in a loan application form.

A bank statement reveals more about an individual than any other document or data that a bank uses to process a loan application. Thus, it is an important document while applying for a loan.

To apply for a personal loan, you can always visit Finserv MARKETS. The types of loan available on Finserv MARKETS are Personal loan, Business Loan, Professional Loan for Chartered Accountants and Doctors, Home Loan, Loan Against Property, Home Loan Balance Transfer, Loan Against Property Balance Transfer, Two-wheeler Loan.

The loan application process is completely online, simple and hassle-free. In case of unsecured loans like Personal loan, there is no need to pledge any collateral. You do not need any security or guarantor to avail this loan. The approval process takes just a few seconds. The documents required to avail the loan are also quite less i.e. no heavy documentation process exists when availing a loan on Finserv MARKETS.

Also, the repayment tenure is also quite flexible. For unsecured loans, it typically goes up to 60 months and up to 300 months for secured loans. Flexible repayment option ensures one can pay the EMIs as their preferred tenure. The loan application process is completely transparent on Finserv MARKETS and there are no hidden charges incurred during the process. So, apply for a loan on Finserv MARKETS today!

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.

Comments

Connect with Us
Connect with Us

Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522