What is the minimum duration for bank statements required for self-employed members?

The minimum duration for bank statements required for self-employed members is 12 months. This time frame is crucial because it provides a comprehensive view of the member's financial health and cash flow patterns over a significant period. Using 12 months of statements allows lenders to assess income stability, business expenses, and any seasonal fluctuations in revenue that may impact a self-employed individual's ability to repay a loan.

Having this extended period of financial documentation helps ensure that lenders make informed decisions based on accurate and consistent income representations, rather than relying on shorter periods that could present an incomplete picture of financial stability. It also aligns with industry standards for evaluating self-employed income, which can often vary more than income from traditional employment.