One crucial document that these lenders need to ascertain the applicant's eligibility for a house loan is the bank account statement. But why passbook entries are seen during home loan? Banks require passbook (or bank account) entries during the home loan process because they serve as a comprehensive record of your financial behavior, showing income stability, spending habits, account balance trends, and existing debts.
Importance of Bank Statement Passbook to Avail a Home Loan
Lenders use passbook entries to verify income consistency. They check if your salary or business credits match what you've declared, especially over 6 to 12 months.
For salaried individuals, regular salary credits indicate reliability.
For self‑employed borrowers, frequent inflows corroborate business activity and declared income.
Passbook records reveal your financial discipline and savings behavior. Regular deposits, healthy average balances, and recurring savings or investment debits reflect prudence factors favorably viewed during eligibility assessment.
The entries help lenders assess your existing liabilities and spending patterns. They can detect EMIs already being serviced, frequent large debits, or impulsive spending on discretionary purchase elements that reduce your repayment capacity.
They also provide up-to-date transaction information. Since credit bureau reports often lag by a month, passbook entries allow banks to spot the latest EMI payments or defaults.
Passbooks contain personal identification details like name, address, and account number. It allows banks to cross-check them against loan application documents.
I hope you found this information helpful.
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Why Passbook Entries are Seen During Home Loan?
ruchi
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2025-07-15T07:54:24+00:00 2025-07-31T15:09:37+00:00Comment
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