Personal Loans: Why do you need to provide bank statements?

Why Do Personal Loan Lenders Ask for Bank Statements? 

When you apply for a personal loan, lenders ask for your bank statements to get a clear picture of your financial situation. It’s not about digging into your private life, it’s about making sure the loan is genuinely affordable for you. 

At Fair Go Finance, we review 90 days of your bank statements to help us assess your income, expenses, and overall financial stability. This isn’t just about ticking boxes for responsible lending—it’s about helping you get an outcome faster, without unnecessary delays or paperwork. 

The best part? Our process is fast, simple, and secure. You don’t need to dig through old files or upload documents manually. You can share your statements safely through our trusted partner, Illion, with just a few clicks. That means quicker assessments and faster access to the funds you need. 

Why Bank Statements Matter—and What Lenders Look For 

1. They Confirm Your Identity 

Lenders use bank statements to confirm your name and address. If these details don’t match your loan application, it could delay the process. Ensuring your info is accurate from the start helps everything run smoothly and avoids unnecessary hold-ups. 

2. They Verify Your Income 

Even if you’ve listed your income on the application, lenders need to confirm it by checking what actually goes into your account. This ensures your loan is based on your real earnings—not just what's stated. 

If your income varies or includes cash payments that aren’t deposited, lenders may not be able to count it. That’s why having consistent, trackable income is so important. 

3. They Show How You Handle Repayments 

Already have loans? Your statements show whether you make repayments on time and in full. A strong repayment history shows you’re financially responsible and improves your chances of getting approved. 

But if you’ve missed payments or had frequent dishonours, it might raise concerns. Improving your repayment habits before applying can go a long way. 

4. They Reveal Spending Habits 

It’s not just about how much you earn—it’s also about how you spend. Bank statements help confirm your regular expenses, like rent and bills, but also give insight into other spending patterns. 

Frequent gambling, overdrawn accounts, or high discretionary spending could affect your application. Reviewing your statements before applying gives you a chance to spot anything that could raise questions. 

5. They Help Assess Affordability 

Above all, lenders want to be sure you can comfortably afford a new loan. If your statements show you’re regularly running low, incurring dishonour fees, or struggling with bills, it might signal financial stress. 

Fair Go Finance—and all responsible lenders—have a legal obligation to assess whether a loan is affordable. If we decline your application for this reason, it’s not a no forever. It’s an opportunity to strengthen your finances and apply again when the time’s right. 

How Fair Go Finance Makes It Easier 

We get it—paperwork can be a pain. That’s why we’ve partnered with Illion, a trusted and secure platform that lets you share your bank statements online in seconds. 

Here’s how that helps you: 

• ✅ Faster outcomes – no delays from uploading documents manually 

• ✅ No printing or scanning – everything is digital and hassle-free 

• ✅ Bank-level security – Illion uses encryption to protect your data 

• ✅ Quick, accurate assessments – the sooner we see your statements, the sooner we can give you an answer 

By simplifying the process, we help you get assessed quickly and fairly so you can access funds when you need them most. 

FAQs:

Is it normal for loan companies to ask for bank statements?

Lenders usually ask your bank statement to help lessen the risk. At Fair Go Finance, we check 90 days’ worth of bank statements to see how you manage your finances and it helps us see what loan you can afford.

Why are bank statements important when applying for personal loans?

Bank statement helps lenders to get an idea about how responsible an applicant manages their finances. It will also help your lender to assess which loan an applicant is eligible.

How many months of bank statements do lenders check? 
Most lenders, including Fair Go Finance, check 90 days (three months) of transaction history.