{"id":899,"date":"2020-07-07T00:56:10","date_gmt":"2020-07-06T20:56:10","guid":{"rendered":"https:\/\/moneymall.ae\/credit-blog\/?p=899"},"modified":"2020-07-13T01:04:04","modified_gmt":"2020-07-12T21:04:04","slug":"check-your-bank-statement","status":"publish","type":"post","link":"https:\/\/moneymall.ae\/credit-blog\/check-your-bank-statement\/","title":{"rendered":"The reason behind your lender wanting to check your bank statement, revealed!"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Whether you apply for a Personal Loan or business funding from your bank or through\u00a0 Finance company, it all comes down to the same thing \u2013 they will ask for your recent Last 6 months bank statement. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Every lender wants to see your bank account activity. Typically that includes your bank statements and transaction history for at least the last 3-6 months. But why is it necessary? Keep reading to learn the reasons why lenders want to see your bank account and how we simplify this step in the lending process so you can get approved quickly and with no stress.<\/span><\/p>\n<figure id=\"attachment_906\" aria-describedby=\"caption-attachment-906\" style=\"width: 567px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-906\" src=\"https:\/\/moneymall.ae\/credit-blog\/wp-content\/uploads\/2020\/07\/photo-1460925895917-afdab827c52f.jpg\" alt=\"\" width=\"567\" height=\"403\" \/><figcaption id=\"caption-attachment-906\" class=\"wp-caption-text\">Check Your Bank Statement<\/figcaption><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2335f9dbebf\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2335f9dbebf\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/moneymall.ae\/credit-blog\/check-your-bank-statement\/#Why_do_you_have_to_provide_bank_statements\" >Why do you have to provide bank statements?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/moneymall.ae\/credit-blog\/check-your-bank-statement\/#What_do_lenders_mainly_check_in_your_bank_statement\" >What do lenders mainly check in your bank statement?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/moneymall.ae\/credit-blog\/check-your-bank-statement\/#Regular_Income_or_Turnover\" >Regular Income or Turnover:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/moneymall.ae\/credit-blog\/check-your-bank-statement\/#Verification_of_your_account_name\" >Verification of your account name<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/moneymall.ae\/credit-blog\/check-your-bank-statement\/#Financial_history\" >Financial history<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/moneymall.ae\/credit-blog\/check-your-bank-statement\/#Average_daily_bank_balance_%E2%80%93\" >Average daily bank balance &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/moneymall.ae\/credit-blog\/check-your-bank-statement\/#Daily_deposits_for_Business\" >Daily deposits for Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/moneymall.ae\/credit-blog\/check-your-bank-statement\/#Recurring_payments_%E2%80%93\" >Recurring payments &#8211;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/moneymall.ae\/credit-blog\/check-your-bank-statement\/#Irregularities\" >Irregularities<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/moneymall.ae\/credit-blog\/check-your-bank-statement\/#How_many_months_bank_statements_will_you_need_to_provide\" >How many months bank statements will you need to provide?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/moneymall.ae\/credit-blog\/check-your-bank-statement\/#Typically_for_a_Personal_Loan_application_you_will_need_to_provide_6_months_of_your_most_recent_statements_for_the_account_where_your_salary_is_getting_credited_If_your_bank_does_not_send_account_statement_on_a_monthly_basis_you_should_use_the_most_recent_quarterly_statements_received_on_email_or_PO_Box_or_contact_your_bank_and_raise_a_request\" >Typically for a Personal Loan application, you will need to provide 6 months of your most recent statements for the account where your salary is getting credited. If your bank does not send account statement on a monthly basis, you should use the most recent quarterly statements received on email or PO Box. or contact your bank and raise a request.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/moneymall.ae\/credit-blog\/check-your-bank-statement\/#For_a_Credit_Card_Application\" >For a Credit Card Application,<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/moneymall.ae\/credit-blog\/check-your-bank-statement\/#For_a_Business_Loan_Application\" >For a Business Loan Application,<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/moneymall.ae\/credit-blog\/check-your-bank-statement\/#For_a_Mortgage_Loan_application_in_UAE\" >For a Mortgage Loan application in UAE,<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/moneymall.ae\/credit-blog\/check-your-bank-statement\/#Are_there_any_special_considerations\" >Are there any special considerations?<\/a><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"Why_do_you_have_to_provide_bank_statements\"><\/span><b>Why do you have to provide bank statements?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Lenders require you to provide them with recent bank statements from an account where your income transactions are happening., such as a Business Current Account for Self Employed or a Salary account of a Salaried Individual. <\/span><\/p>\n<blockquote><p><strong>the main purpose behind a lender wanting to check your bank statement is to confirm that you have a regular flow of sufficient monthly income to repay the Credit Card dues or future Installments of a loan which you have applied for.<\/strong><\/p>\n<p><strong>They want to make sure that you will be able to afford your down payment and make your monthly payments on time.<\/strong><\/p><\/blockquote>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_do_lenders_mainly_check_in_your_bank_statement\"><\/span><b>What do lenders mainly check in your bank statement?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Although the reason might differ in the case of different borrowers and the credit type, we have listed the five main factors due to which your lender is probably looking to check your bank statement. They are as follows:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Regular_Income_or_Turnover\"><\/span>Regular Income or Turnover:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>The lender wants to make sure that you have a regular flow of income and you can afford the loan or card they are going to approve for you.<\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Verification_of_your_account_name\"><\/span><b>Verification of your account name <\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><b><\/b><b><span style=\"font-weight: 400;\">Lenders want to make sure that you are who you say you are, and what better way to do this than your bank statements? They use the information provided on your statements to verify your business\u2019s registered name and trading name.<\/span><\/b><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Financial_history\"><\/span>Financial history<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Your bank account activity over the past few months can give a good indication of your business health. Lenders usually ask for at least 3 months\u2019 worth of bank statements.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Average_daily_bank_balance_%E2%80%93\"><\/span>Average daily bank balance &#8211;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If your average daily balance remains more or less constant and is positive over a period of time, you are likely to get funding for your business.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Daily_deposits_for_Business\"><\/span>Daily deposits for Business<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Obviously, the more daily deposits you have, the better, as lenders can see that you\u2019re bringing in revenue. They get this information from your bank statements.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Recurring_payments_%E2%80%93\"><\/span>Recurring payments &#8211;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Your bank statements prove to your lender that your deposits or revenue are more than your payments or expenses. Another tell-tale sign of a low-risk borrower.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Irregularities\"><\/span>Irregularities<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p>&#8211; to check any account irregularities like Cheque returns, Late payment fees, Minimum Average balance charges, etc,<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_many_months_bank_statements_will_you_need_to_provide\"><\/span><b>How many months bank statements will you need to provide?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Typically_for_a_Personal_Loan_application_you_will_need_to_provide_6_months_of_your_most_recent_statements_for_the_account_where_your_salary_is_getting_credited_If_your_bank_does_not_send_account_statement_on_a_monthly_basis_you_should_use_the_most_recent_quarterly_statements_received_on_email_or_PO_Box_or_contact_your_bank_and_raise_a_request\"><\/span><span style=\"font-weight: 400;\">Typically <a href=\"https:\/\/moneymall.ae\/personal-loans-in-uae\/\"><strong>for a Personal Loan application<\/strong><\/a>, you will need to provide 6 months of your most recent statements for the account where your salary is getting credited. If your bank does not send account statement on a monthly basis, you should use the most recent quarterly statements received on email or PO Box. or contact your bank and raise a request.<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"For_a_Credit_Card_Application\"><\/span><a href=\"https:\/\/moneymall.ae\/best-credit-card-in-uae\/\">For a Credit Card Application,<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Your\u00a0 Card provider bank will ask for 3 months bank statement of a salary account, with few lenders sometimes you might be able to get a credit card approval without providing a statement if your credit score is very high or you are qualified for a surrogate program offers.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"For_a_Business_Loan_Application\"><\/span><strong><a href=\"https:\/\/moneymall.ae\/business-loan-dubai\">For a Business Loan Application,<\/a> <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Banks might ask 1-year bank statements of all accounts you hold., it&#8217;s generally to check your actual business turnover, cash flow, your payment habits\u00a0 and any irregularities i.e. cheque returns<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Keep in mind that when you are applying for a business loan, they are likely to ask for documentation for any and all accounts that hold monetary assets. Why is this? They want to know that you will be able to afford your down payment and make your monthly payments. So, your lender will look at your assets and see how much cash you have available to you if you were to need it. Each lender will have its own requirements for how many months\u2019 worth of payments it expects the borrowers to have saved up. Keep this in mind if and when you are planning to avail a loan.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"For_a_Mortgage_Loan_application_in_UAE\"><\/span><a href=\"https:\/\/moneymall.ae\/mortgages-home-loan\/\"><span style=\"font-weight: 400;\"><strong>For a Mortgage Loan application in UAE,<\/strong> <\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">you may have to provide multiple bank statements also, If you are wondering why you need multiple statements, it is because lenders want to be sure that the money in the account belongs to you, and that you have not taken out a loan or borrowed money from someone to be able to qualify for the mortgage or to pay a down payment. If the money has been in the account for a longer period, they assume that it belongs to you, <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Any loans you took out in last 2-month time span will have already show up on your credit report. If any large, unexplained deposits appear on the bank statements you provide, you will need to be able to prove that they came from an acceptable source. It is about ensuring that you are not too risky for the lender to give you a mortgage.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Are_there_any_special_considerations\"><\/span><b>Are there any special considerations?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Yes. A bank or mortgage company may also want to see evidence of how the funds came to be deposited into the borrower&#8217;s bank account. The bank or lender may also ask for proof or a paper trail of where a borrower&#8217;s deposit originated from particularly if it was a gift. Some financial institutions impose limits on how much can be gifted to borrowers to help with the down payment. As a result, a bank may request a letter from the person who gifted money. Also, a bank may want to see proof of several months of cash reserve on hand in another account to ensure the borrower can still pay the mortgage if they lose their income stream.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We hope that this article was successful in clarifying all your doubts relating to your lender wanting to take a look at your bank statements. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Good luck!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Whether you apply for a Personal Loan or business funding from your bank or through\u00a0 Finance company, it all comes 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