The Solvency Certificate a type of important financial based document which can be used as proof for the financial stability of any single person or an entity. These certificates of solvency are typically used as a proof of financial strength during the appearance at a Visa interview or during the application for the tenders. These certificates are generally issued through a bank based on the transactions and reports of the bank account which are obtained from any Chartered Accountant.
Submission of Important Documents
It should be mentioned that the documents which are to be submitted may vary from bank to bank. But, there is a common set of documents which are to be provided. The list of the documents are given below.
- Certificate of Chartered Accountant Net worth
- Copy of the passport.
- Current account statement, if there is any.
- Gold valuation certificate, issued by the Banker on the basis of the weight and the value of gold.
- Insurance, if there is any.
- Investment in shares, if there is any.
- Mutual funds investment, if there is any.
- Property valuation certificate from Chartered Engineer, if it is applicable.
- Provident fund account statement, if there is any.
- Request form.
- Savings account statement, if there is any.
The documents which are mentioned above has to be submitted along with the original documents for the purpose of verification. However, you have to keep in mind that the criteria of the documents which varies from bank to bank. Therefore, it is recommended that the applicant can check the requirements provided by the bank before making the application.
Sample of a Solvency Certificate
The sample of a solvency certificate that has been issued by any bank in the India has been given below. Note that the certificate has to be issued on the letter head of the bank and it has to be signed by the respective authority of the bank.
Application for the Solvency Certificate
The form of application for the solvency certificate has to be submitted to the respective bank. It is to be noted that the bank has to be the one of the saving account or the current account has to be maintained. Moreover, the banker would have to require further documents and more data in order to verify and prepare the certificate of solvency. Therefore, the application for the certificate has to be provided along with details as follows.
Valuation of the Property
If the applicant is interested to know the value of his owned property and to take it into consideration, he has to submit the report on the property valuation from a specialist, such as the Bank Panel Valuer or a Chartered Engineer. After the submission of the application, the bank can make a request to look at the original data documents of the said property.
Valuation of Gold
If the applicant want to take the value of the possessed gold into consideration, the value of the possessed gold has to be measured by the Bank Panel Valuer. Generally there are in-house valuers of gold already present in the banks who process the loans for gold.
Statement of Bank
If the applicant has money in the savings account of any bank, he has to submit details of all the bank statements which is under the control of the applicant.
Receipts of Fixed Deposit
If the applicant has any fixed deposit in his name, he must submit all the necessary details of the receipts of those fixed deposits.
Statement of Provident Fund
If the applicant has money that is saved in the account of his provident fund, then he has to provide the statement of account of the provident fund.
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Shares or the Mutual Funds
If the applicant possesses any savings in the mutual funds or the shares, he or she has submit the details of those investment. The value of surrender of those investment will be taken into consideration at the time of issuing the solvency certificate.
Certificate of Net Worth of the Chartered Accountant
A certificate about the net worth list has to be obtained from a Chartered Accountant which will contain a full list of all the liabilities and the assets. However, most of the banks ask for statement of Net Worth of the Chartered Accountant in order to permit the solvency certificate.
Submission of the Application
During the process of application for the certificate, a photocopy of all the aforementioned documents as stated by the official of the bank has to be added with the filled up request form of the solvency certificate. The original documents has to be shown at the time of submitting the form and the photocopies of all the documents for the purpose of verification which has been carried out by the prospective bank. After the form of application has been submitted along with all the required documents, it is the duty of the bank to examine and process the application within a span of 7 days and then issue the certificate of solvency.
Fee for the Solvency of Certificate
The fee set for the certificate varies from bank to bank. But generally most of the banks charge around Rs 2000 in order to issue the solvency certificate.
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