What do banks look in Bank statements of a person while giving loans?



What do banks look in Account statements of a person while giving loans. does it matter how old is the account. i want to know as I am planning to change my account too.

Thanks,

What do banks look in Bank statements of a person while giving loans?
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3 Replies to “What do banks look in Bank statements of a person while giving loans?”


  1. Well they will generally look for last 6 months of bank statements. They see as to wht is the per month salary of the person and what is his expenditure.
    They want to know the credit history as to if person will be able to pay the loan back or not.


  2. HI. I’d like to try and answer your inquiry, as i work in a bank.

    As i process loan applications. The first thing we look for in a person is his 1)Character:
    Does He have bad credit? Does he pay promptly his creditors? Is he of good credit standing to the community? Is he able to pay on-time? and so on…

    Next thing to consider is: 2) capacity to pay…
    and this is the answer to your question

    Banks need proof of income when asking for loan documents. some documents such as Tax returns, pay slips, existing loan documents from other creditors, and YOUR BANK STATeMENT/S.
    these bank statements are proof of income,. proof of savings. proof of liquidity (from your end) and these are notably the banks basis of approving the loan as to how much you are able to pay monthly or your ammortization.
    bank accounts (usually savings or chequing) are the risk mitigants of the banks.
    In some cases, if you have been banking long already on the same bank who is giving out the loan,. they may also lower your interest rate given to you on that housing/ car loan you are applying since they have already established your character, and have earned income already from your “LOW COST” ( termed as savings or chueqing) account interests.

    hope this helps..

    Ryan





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