Banks are now a part of our everyday existence. They are the safekeepers of our earnings, offering various financial services, investments, and safe deposit boxes for jewellery and other precious items. There is an ongoing relationship with the bank that holds your funds. Whether it is a savings account, a salary account, or a business account, the services provided are according to the type of account and the balance maintained.

Lending is an integral part of the Banking business today. It involves issuing credit according to various customer needs, such as buying a new home, expanding a business, purchasing a new vehicle, or meeting individual and emergency needs.

Holding an account with a registered Bank has become necessary, whether with a private or government-aided Bank. However, it is not essential to maintain an account with the Bank to apply for credit. You can apply to any Bank that will suitably fulfil your funding requirements. However, a bank statement is a mandatory document required for issuing further credit, such as a secured loan, home loan, or mortgage, and for unsecured credit, like a Personal Loan or Credit Card. Personal Loans and Credit Cards are issued without security or guarantee, making an individual’s bank statement paramount.

The type of Bank account and the transactions reflect an individual’s financial standing based on income earned, spending patterns, and savings or balances maintained, which is crucial for assessing an individual’s economic worth and management abilities. An individual’s banking allows a lender to verify the income and current credit instalments being paid.

Essential Transactions Required When Applying for an Unsecured Credit

Are you Applying for an HDFC Bank Personal Loan or an ICICI Bank Coral Credit Card? A three-month bank statement must be submitted as part of the documentation required to process your Personal Loan and Credit Card requests from a bank or NBFC. Note the following before submitting your bank statement.

• The Bank credentials in banking must match your KYC Documents, such as your name and account number, which should be similar to the bank account mentioned on your salary slip.
• A three-month bank statement must be submitted as documentation the date of the statement should not be more than 10 days older than the date on which the loan application is submitted.
• The statement should reflect salary transfer credits for the last three months. Ideally, the salary must be credited by the 7th and on a regular date, month by month. The salary credited must match the net salary as per the salary slips.

The Following Checks Will be Conducted When Verifying Your Bank Statement.

• Any returns or bounces of cheques issued to external parties because of insufficient balance are regarded negatively and will result in the rejection of the loan request.
• If the EMI of any existing loans has not been paid, it will be reflected in the bank statement. As a result, the applicant will not be issued any further credit for the next three months in such cases.
• An average bank balance is required to issue further credit. If the account balance is low and the applicant has exhausted all earned income, the lender may be apprehensive about the applicant’s financial Eligibility for a Personal Loan.
• The EMI paid for the existing credit is considered when verifying the bank statement. Credit Card dues and loan instalments are also included in Calculating Personal Loan Eligibility.
• If the applicant maintains an alternate Bank account with regular transactions, they should submit the additional statement as proof of financial stability the earnings of the spouse and parents residing in the same premises are also considered part of the income, provided that the lender’s policy is fulfilled.

What are the Benefits of an Upright Banking?

• An applicant maintaining a bank statement with regular salary credits and a healthy balance enables a positive response when applying for unsecured credit, such as a Personal Loan or a Credit Card.
• With the monthly instalment deducted promptly, the CIBIL Score has also improved. Prominent banks that issue Personal Loans, such as ICICI Bank, HDFC Bank, and AXIS Bank, offer special privileges to holders with vintage or corporate accounts.
• Banks offer loans with lower interest rates, enhanced amounts, and reduced processing fees to maintain a relationship with high-income account holders.

Your bank account serves more than merely the purpose of depositing and withdrawing money. By holding deposits with ICICI Bank, you can access the Emeralde Credit Card or Rubyx Credit Card privileges.

With the onset of digital Banking, accessing your Bank statement is convenient. You can download it from your computer or even your mobile phone. When downloading your bank statement, note the following steps to expedite processing your loan request.

• The copy must be clear, and all figures and notations in the credit and debit columns must be accurate.
• To verify authenticity, create a PDF copy to ensure the bank is assured that the statement is genuine and has not been tampered with.
• The bank’s logo must be visible, and the account number should match the bank account number on the salary slip.

Further, the lender will verify the statement submitted for discrepancies before processing the loan request.

Your bank account reflects your financial standing. Prioritise tracking your transactions and budgeting your expenses. A healthy bank account with sufficient funds to cover the costs can greatly facilitate obtaining credit when necessary for building assets, meeting lifestyle needs, and having resources in emergencies.

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