A solvency certificate is a legal document furnishing the details regarding the financial stability and solvency of an organisation or individual. This certification is usually required while dealing with government and commercial offices as they need to verify the financial stature of that respective entity. Banks or revenue departments issue it as per the RBI guidelines for a nominal fee.
This blog highlights the importance of a solvency certificate, the documents required to request it, how to apply online for it and much more. Keep reading!
A solvency certificate can be required for multiple reasons. Here are some of the significant purposes of a solvency certificate:
In some states, one might also require it for getting admission to medical and engineering colleges.
Banks, financial institutions and the revenue department of states have the authority to issue a solvency certificate.
Banks issue this certificate only to their customers based on a few parameters, such as transaction details, account information, and property-related documents available to them. A net worth certificate, which can be obtained from a Chartered Accountant in regard to the applicant’s financial status, also helps in getting a solvency certificate.
A solvency certificate has a validity period which is usually one year. Hence, you have to renew it periodically to keep its validity intact.
Obtaining a solvency certificate requires a long list of documents. However, please note that this requirement may vary from one issuer to another as well as applicants.
This is a list of the documents usually required to get a solvency certificate:
A solvency certificate format is the same for most banks and other issuers. But it may differ a little bit in its style and information from one issuer to another. This also depends on the entity it is being issued for.
Here is a solvency certificate sample to provide more clarity on what a solvency certificate looks like.
This sample is for a business entity issued by a bank. This certificate must be issued on a bank’s letterhead and sealed & signed by a concerned officer in the bank.
Application procedures for solvency certificates for most states are the same. The only difference might be the interface of the portal, which is different for every state.
Another way you can apply for a solvency certificate is by visiting a Common Service Centre (CSC) or e-District Kiosk. The steps have been discussed below:
Tracking the application status of your solvency certificate online involves visiting the same website you applied through. However, the procedure may vary slightly from one state website to another.
Here are the general steps that you can follow to track solvency certificate application status:
You can download your solvency certificate from the same website you applied on for the same. You can follow the steps mentioned below:
Additionally, another easy way is to get your certificate via DigiLocker. For this, you would need to create a Digilocker account. Once you have one, you need to follow the given steps to download your solvency certificate:
Step 1: Go to the website of Digilocker and Sign in to your account.
Step 3: Under ‘Issued Documents’, click on ‘Check Partner’s Section.’
Step 4: Select the name of your respective Revenue Department office under ‘Partner’s name’ and service as ‘Solvency Certificate’.
Step 5: Provide ‘Acknowledgement Number’ and click on ‘Accept Checkbox’.
Step 6: Click on ‘Get Document’, and your chosen document will be linked with your DigiLocker Account.
Step 7: Click on ‘Issued Document’ in DigiLocker, and under that, select ‘, View Document’. You will be able to view your solvency certificate.
The departments and establishments which have your financial or transactional details can only issue a solvency certificate for you. By proving your financial stability, this document aids in multiple official processes like visa applications, court matters, etc.
Ans: In case your certificate is not granted, the Revenue Officer will pass necessary orders regarding the reason for the same. Then, there will be further verification and modification, after which you will receive your solvency certificate.
Ans: You can apply to your bank or regional Revenue Officer requesting a solvency certificate. You can also apply to Chief Officer in Charge of Revenue Administration of the concerned & District, Sub-division or Tahasil, Assistant Tahasildar or Assistant District Magistrate.
Ans: The fee for a solvency certificate varies from one bank to another. However, most banks charge around Rs. 2000 for a solvency certificate. This fee might also vary from state to state.
Ans: Banks and financial establishments are primarily responsible for issuing the solvency certificate. However, the ones that the banks issue are mostly accepted as valid ones. These certificates have a validity period, mostly one year, after which you need to renew them.
Ans: After you submit your application with all the required documents, the bank representative who is supposed to verify the documents will complete the process and hand over the certificate. This whole procedure can take about 1 week to get completed. However, this can vary from one state to another.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
Banking
Scheduled Bank – Know Its Types and Functions
Banks play an essential role in a country’s financial ecosystem. These financial institutions ass... Read More »Banking
What is Bancassurance: Its Services, Types, Models and Importance
Bancassurance means a partnership between a bank and an insurance company that allows the insurance... Read More »Banking
17 Different Types of Loans and Their Features
Loans can be broadly categorised into secured and unsecured loans based on whether they requir... Read More »Banking
What is Cash Reserve Ratio (CRR) in Banking and How Does it Impact the Economy?
All commercial banks in India maintain a specific percentage of total bank deposits as per the guid... Read More »Banking
Account Payee Cheque – How to Write and Encash?
An Account Payee Cheque is a very secure mode of payment. It is only used to deposit money into the... Read More »Banking
What is Merchant Banking – Its Uses and Services Provided?
Large businesses and high-net-worth individuals (HNIs) have different financial requirements and th... Read More »Banking
Payment Aggregator – Features, Types, Working, Example and Risks
Digital payments have become the most preferred and used payment method. And, it has led to the ris... Read More »Banking
What is Cheque Leaf – Purpose, Features and Types
Before the advent of electronic payment systems, bank cheques were the most popular form of non-cas... Read More »Banking
4 Important Factors That Affect Your Credit Score
Did you know the lucrative interest rate on loans by banks and NBFCs are usually meant for creditwo... Read More »Banking
What is Collateralized Debt Obligations (CDOs) and How Does it Work?
Investors can buy collateralized debt obligations or CDOs and depend on the assets within them to u... Read More »Banking
What is FCNR Account In Banking – Benefits, Eligibility and Documents Required
FCNR, full form Foreign Currency Non-Resident Bank (B), allows NRIs (Non-resident Indians) to inves... Read More »Banking
What are Prepaid Expenses – Journal Entry, Example and Benefits
Accounting tools are essential to forming a financial statement of a company that complies with com... Read More »Mutual Funds
Top 10 Chit Fund Schemes in India in 2023
Chit funds are one of the most popular return-generating saving schemes in India. It is a financial... Read More »Personal Loans
₹15,000 Personal Loan: Features, Benefits, EMI and Interest Rate
Financial emergencies can be short term and you might not always require a large amount to handle t... Read More »Personal Loans
Personal Loan Interest Rates in India – Charges and Processing Fee
Applying for a personal loan? Have you compared the personal interest rates and processing fees? ... Read More »Mutual Funds
10 Best Gold ETFs to Invest in India 2023 – Returns and Taxation
Gold ETFs or Gold Exchange Traded Funds are passively managed funds that track the price of physica... Read More »Health Insurance
TPA in Health Insurance – Full Form, Functions and Roles
TPA (full form – Third Party Administrator) is a licensed intermediary between health insurance p... Read More »Banking
ATM Card AMC (Annual Maintenance Charge): Explained
ATM Card AMC (Annual Maintenance Charge) is a maintenance fee levied by banks every year. This debi... Read More »Mutual Funds
Top 10 Demat Accounts in India [Lowest Brokerage Charges]
A Demat account was created to eliminate the time-consuming and inconvenient procedure of purchasin... Read More »Mutual Funds
20 Best Index Funds in India to Invest in 2023 (27th Jan)
What is an Index Fund? An index fund is a type of mutual fund or exchange-traded fund (ETF) that... Read More »All information is subject to specific conditions | © 2023 Navi Technologies Ltd. All rights are reserved.
Start Small. Dream Big.
Start your Investment Journey with just ₹10