One of the Major Requirements while filing an Application for Loan is the Bank Statements of the Previous Six Months. But what is the benefit of providing the Bank Statements and what do the Banks try to search for in these Statements? Read on to find the Reasons for the same.
1. Monthly Savings of the Applicant
Scrutinising the Statements gives the Bankers an Idea about the Financial Soundness of the Applicant. From these statements the Bankers try to have an idea about the Monthly Expenses & Saving Habits of the Applicant. These are necessary to ensure that the Applicant is Credit Worthy and would be able to repay pay the Loan Instalments on time.
It also helps the Bankers in assessing how much Net Income is credited to the account of the Individual every month, on the basis of which the Loan Eligibility is determined.
2. Financial Status of the Applicant
They also try to look for Cheque Bounces in your Statements. If there are frequent Cheque bounces, this may work against you while getting the Loan approvals, as this is an indication of the fact that you are not financially sound, and may not be able to repay the Loan Instalments on time. They also check whether all payments on Credit Card have been paid on time or not.
3. Other Liabilities
If Monthly Payments are being made to other Financial Institutions, they try to look for reasons for the same and you’ll have to furnish details of these payments as well as details about how long these payments would be made as this reduces your monthly paying capacity.
The Bankers would require all details of such Loan including the Tenure and the Amount remaining unpaid.
