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Why Are Bank Statements So Important for Loan Approvals?
When applying for a loan, one of the most common documents requested is your bank statement — usually from the last 3 to 6 months. But why?
Let’s decode the real reasons lenders like banks, NBFCs, and fintechs (like Vizzve Finance) ask for your statement before giving the green light.
Top 5 Reasons Lenders Ask for Your Bank Statement
1. To Check Your Monthly Income & Cash Flow
Lenders want to ensure:
You earn regularly
There’s enough monthly surplus left after expenses
This helps them know if you can handle EMI payments without defaulting.
2. To Assess Spending Habits
Excessive:
Gambling
Unsecured loans
Irregular large expenses
…can be red flags. Bank statements give insight into your financial behavior.
3. To Verify Stability and Authenticity
If you claim a ₹50,000 salary but your account shows irregular deposits, lenders will see a mismatch.
Bank statements verify:
Salary credits
Consistency of transactions
Employer details (via salary source)
4. To Check Existing EMIs or Debts
Lenders use your statements to:
Calculate debt-to-income ratio
Spot any undisclosed loans or bounce entries
Too many active EMIs = high credit risk.
5. To Detect Risky Patterns
Bounced cheques, low balances near EMI due dates, or frequent overdrafts = signs of financial strain.
Lenders avoid giving loans to people who may struggle with repayments.
Vizzve Finance Pro Tip
Keep your main salary account clean and consistent.
Avoid mixing it with irregular or unnecessary personal transactions.
With Vizzve, you can also apply for paperless loans using bank e-statements — fast, safe, and trusted by top NBFCs.
Final Takeaway
Bank statements are not just a formality — they’re a trust test.
They tell lenders more than any form or ID proof can.
By reviewing your transactions, salary patterns, and spending habits, lenders get a 360° view of your repayment capacity. That’s why Vizzve Finance makes it easy to share and verify your e-statements securely for faster approval.
Frequently Asked Questions (FAQs)
Q1. How many months of bank statements are needed for a loan?
Usually 3–6 months, depending on loan type and lender policy.
Q2. Can I submit a PDF or do I need a hard copy?
PDF e-statements are accepted by most lenders — especially via Vizzve’s digital process.
Q3. What if I have multiple bank accounts?
Submit the one where your salary or income is credited and where you manage your regular expenses.
Q4. Will overdrafts or bounced EMIs affect approval?
Yes, negative patterns may lower your loan approval chances.
Q5. Can Vizzve Finance help with pre-checks before applying?
Absolutely. Our experts can review your financial profile and suggest the right loan — before you apply.
Published on : 22nd July
Published by : SMITA
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