Bank Statement Analysis: Is it the best tool to determine loan sanctioning?
October 09, 2019
Bank statement is a statement that is received from the bank after each month for the transaction one performs. Bank statement usually list down the available balance, deposits, withdrawals, interest, service charges, penalties, and others.
Banking history of any month or any time period can be accessed by the customer. Banking history can either be received from the bank or through the online portal. Accessing the banking history allows a customer to look where the money has been invested or withdrawn or deposited and on what date.
Currently, getting a loan sanctioned from the bank is a tedious task requiring a stringent document verification process. Verification process varies from bank to bank. The process starts with the application, which can either be filled online or by visiting any nearest branch. All necessary documents such as address proof, identity proof, income proof (bank statement or payslips received from the organization), and others must be attached along with a duly filled application form.
Before the bank grants any loan, it follows four cardinal principles such as safety, liquidity, spread and profitability. Banks will then study past funds flow statements from the bank statement for a time period to ensure that the customer is financially strong and can pay back the loan in time. If necessary, banks may ask to keep some land papers or jewellery as security, which will be utilized if the customer isn’t financially strong to pay the loan debt.
Analyzing the bank statement is an important part in sanctioning loan to the customer. From the statement, bank analyzes the expenditure and also finds whether the customer has sufficient funds to pay their loan debt.
Loan sanctioning is a tedious job wherein proper document verification is performed and only after the complete verification of address, employment and others, loan is sanctioned either for personal use, education, home/house, industrial loan.
Our Bank Statement Analyzer
utilises Artificial Intelligence along with the expertise of experienced senior banking professionals towards providing accuracy in analysis and reducing human error.