A bank statement contains all the transactions that were done on a particular bank account for a particular time period, with opening and closing balance, ordered chronologically.
During our loan application process, we initially ask for basic information regarding employment history, loan history and the reason for availing the loan. After this, we ask the customer to verify his work email and fill in his PAN details, after which the bank statement is asked for.
The bank statement is needed for our underwriting process while processing a loan request since the transactions in the bank statement and balance help us identify whether the user has the capacity and intent to pay back the availed loan. We usually ask for past 6 months salary bank statement, and we check for 6 salary credits in those and also analyze the spending patterns. As an exception, we have allowed people with 4 salary credits, in case they have just started working and decided to apply for a loan.
We have two levels of verification for bank statements:
- Automated System Check: For our automated system, we have partnered with Perfios, which specializes in parsing bank statements from various banks. Our automated system checks the data for date-range, whether it has the 6-month bank statement data, whether there are bounces that are present in the transactions, identifies salary transactions, balance post salary credit also identifies the bank account associated with the bank statement. This parsed information helps our credit officer while doing checks.
- Credit Officer Check: Credit officer goes through the bank statements, and identifies salary credits, goes through large value transactions and checks for red flags. Some red flags in case of bank transaction include online gambling/gaming, high consumption of alcohol, etc.
In case our automated system and our credit officer are unable to find salary credits, it is asked to the customer to identify their salary credit via website/app as well as email/call. After this, the customer may opt to identify the salary credit or upload the correct bank statement. Note, we only allow bank transfers as salary credits, cash deposits are not allowed. If the whole salary is transferred to some other bank account by customer post salary credit, we ask for the other bank account bank statement as well while processing the loan request.
The bank statement can be uploaded to our system via two methods:
- The Document Upload method: In order to do document upload, you have to visit your bank’s net-banking portal, log in and download bank statement for the past 6 month time period, and upload it to our system. If you get monthly statements in your email id, these can be uploaded as well to our system.
- The Net-Banking method: If for your selected bank, we support net-banking option, you can just log in to your net-banking account in website/app itself and we automatically download the bank statement. We highly recommend doing net-banking option, since not only it is secure(we do not save the username/password and it is Symantec verified), it is less error-prone, and your application will be processed faster.
Please note that the bank statements are initially processed by our automated systems, hence photograph of bank statements, passbooks, etc. are not accepted. Also, make sure that the bank statements that are uploaded have your name and account number in it so that our system is able to process it. For example, in case bank statement downloaded from ICICI bank mobile app, a name field is not present and our system is not able to identify the user.