High Income Doesn't Guarantee Big Loan: Banks Prioritize Spending Habits

• Banks scrutinize net cash flow and account behavior, not just high turnover, for loan eligibility.
• For self-employed, bank statements over 6-12 months are more crucial than profit-loss statements.
• High income with equally high expenses is seen as a risk; disciplined saving strengthens eligibility.
• Credit score, payment history, and credit utilization ratio are vital for loan approval.
• Financial discipline, timely payments, and balanced spending are key to winning bank's trust.

Why It Matters: Financial discipline and responsible spending habits are more critical for loan approval than just high income.