Is It Safe to Share Bank Details to Get a Loan?

Updated on: 31 August 2023

Published on: 18 August 2020

If you’re not using online banking yet, you are part of a club that’s only getting smaller. An increasingly large number of people in India access their bank accounts online or through their mobile devices and for good reason.

Gone are the days of visiting a branch to pay bills, deposit checks securely, and transfer money. Mobile and online banking makes managing finances easy and convenient. At Fibe, you can complete all financial activities with a few taps on your phone by safely sharing your bank details for a loan.

However, you may wonder if sharing bank statement for loan applications is safe. Read on to know when and why you need to share such data. 

Is sharing bank statements safe?

It is normal to feel wary when you are asked to share such personal financial information. After all, scams and online fraud are commonplace these days. To avoid your bank data, statements or log in details from being misused, make sure you know why you need to share such details. Moreover, try to ascertain if the institution that requires your account statements is reliable. 

How do bank statements help?

Knowing why your account statements are needed is the first step to safeguarding your data and securing yourself. Here are some of the ways in which you or third parties can use bank statements. 

• Lenders need your bank details to check your eligibility for a loan or a credit card. They ask you to provide bank statements to check your income or salary and verify the information in your application for credit facilities. For instance, this way you can easily get an offer for a personal loan on bank statement verification. 

• You or your chartered accountant may need to access your bank statements to help in filing your income tax returns during the end of the financial year. 

• You may also view or download bank statements online to monitor your earnings and expenses to assess your finances or create a budget. 

• You may need to access your statements to track your savings and credits or plan important payments in the future. This also helps you reduce any overdraft penalty charge in case you end up using an amount that is more than your bank balance. 

• Finally, you may check your bank statements to identify any instances of fraud or theft. The data in your statement can help you report these instances too.

For all these reasons, strive to store your statements carefully. Usually, you will need a password to view your bank statements even if you download them, which is a great way to protect your data. 

Also Read: Best banks for savings accounts in India

Learn how your data is being used

The next step in securing your bank statements is to know how this information is being utilised by the third party asking for it. To understand this, follow the suggestions below. 

• Learn what data the service stores and for how long
• Check to see if the data you are sharing can or will be shared with other third parties
• Make sure you understand how to advise the service to stop accessing your accounts, as well as how to delete the data you have shared, if appropriate
• Ask if the website or service you are using automatically keeps or stores your information or passwords

When you are satisfied with the above, sharing your bank statement is safe. 

Should a loan company ask for online banking details? 

Online banking details come under the category of sensitive information. If this information lands in the wrong hands, it can put you in a vulnerable position. Online banking details may include your customer identification number, net banking passwords, PIN, etc. Therefore, any legitimate loan company will never ask for online banking details. Instead, they rely on other methods, such as your submission of bank statements for loan applications. 

In some cases, you may need to share your password for opening the PDF with the lender. However, if the lender or loan app you are using is registered with the RBI and has other safety protocols in place, it is safe for you to do so.

How to share bank account details?

When sharing your bank details or bank statements, you should be cautious of the method of communication. Using an encrypted platform is most important, especially for the digital loan application process. 

You can rely on a secure email address to share your details, and for additional protection, use zip files or password-protected PDFs. Sharing your details on loan companies’ apps is also safe if the app has safety measures in place. This way, applying for a personal loan on bank statement verification becomes more secure. 

How to share your bank information on Fibe?

At Fibe, we never auto-save your information or passwords. We encrypt your data and use a PCI DSS App-based journey to ensure your data is safe and secure. Fibe is also ISO/IEC 27001 certified.
To share your bank statement for loan application and get instant cash, you can utilise any of the following ways.

Option 1: Make Use of Online Banking

• Log in to your salary bank account through Fibe
• Ensure that your past three months’ pay has been credited
• Obtain fast loan approval from Fibe

Option 2: Submit Bank Statements 

• Check that the bank statement is for your salary account
• Ensure that your past three months’ pay has been credited
• Submit the original PDF format

Both alternatives are really simple, quick and secure!

While new technology offers convenience, it can also give scammers more opportunities to access your hard-earned money or data. So, always be alert while you share bank details for loans. Use strong passwords and be on guard when giving access. To have a safe and convenient experience with sharing your bank statements and getting the funds you need, download the Fibe Personal Loan App.

FAQs on Sharing Bank Statements 

Is it safe to share bank statements?

Sharing bank statements is safe when you are availing of the services of an RBI-registered lender or financial institution.

Is it safe to send a PDF bank statement?

Yes, it is safe to send your bank statement in PDF format to reliable individuals/services. However, most PDF statements require a password to open the document. Share these details only with trusted lenders or financial institutions. 

Is it safe to share bank statements for loan applications?

Bank statements are required by financial companies to check your loan eligibility. It is safe to share these if you are sure the information channel is secure, and that your data will not be misused. With PCI DSS and ISO/IEC 27001 certification, Fibe prioritises your security, which is why you can share your bank statements stress-free.

What bank details are safe to share?

You can share your bank statement, account number and IFSC code. Keep the rest of the details safe with yourself. You can use your customer ID and password to log in to your account via a third-party app if it is safe to do so.

What is the safest way to send bank statements?

The safest way to share your bank statements is on the secure portal or app. Such portals have security measures that keep your data encrypted. 

Who can ask for bank statements?

Your lender or CA may ask you to share your bank statements. However, it is your choice whether you want to share these details.

Do lenders verify bank statements?

Yes, lenders do verify your bank statements when you apply for a personal loan on bank statement. They check your income and make sure you are eligible for the loan. In this process, your name, account type, average balance history, salary credit, savings, etc., are verified by the lender. 

Can bank statements be misused?

Sharing your bank statement with third parties without verifying the receiver can put you at risk for identity theft. Your bank statement contains personal details such as your name, address, email ID as well and bank account number. Scammers can use this sensitive information to commit fraud.

Do loan companies check your bank account?

Yes, loan companies will request your bank statement when you apply for a loan to verify your repayment capacity. 

Why do mortgage lenders ask for bank statements?

A bank statement is a crucial document submitted as proof of income. This is why all lenders require this statement to determine your eligibility and assess the risk you pose as a prospective borrower.

Is it safe to share the IFSC code?

Sharing your IFSC code is completely secure, be it for hassle-free online transactions or when applying for loans.