Apply for Solvency Certificate Online

A solvency certificate is a type of financial document that reflects the financial stability of the person, company, or any other legal entity holding it. Solvency certificates serve as essential proof of the financial lucrativeness of their holder and are relied upon during several transactions. Such transactions can include verifying one’s credit standing, proof of ownership of financial assets, and the like, required in several official processes.

Several banks issue solvency certificates across the nation. There are scheduled banks or authorized banks that have been granted the power of issuing solvency certificates, and they are required to comply with certain guidelines to exercise said power. Although different banks have specific alterations as and when policy demands, the general procedure surrounding the issuance of solvency certificates is as follows: 

The documents that need to be furnished for obtaining a domicile certificate are as follows:

• The duly filled application form or request form for the domicile certificate.
• The current account statement for the relevant bank account, if applicable in the circumstances.
• Proof of investments includes savings bank account statements, mutual funds, bonds, shares, provident funds, and the like. 
• Proof of ownership of gold, if applicable, through a valuation certificate. The valuation certificate is made in real-time based on the market value of said gold as per bank standards. 
• Proof of ownership of property, if applicable, and its valid valuation certificate from a registered Chartered Engineer. 
• Copy of any ongoing, applicable insurances along with proof. 
• Chartered Accountant verified the net worth certificate of the person, firm, organization, or relevant legal entity, the applicant. A net worth certificate contains all the assets and liabilities of the applicant, and they are duly listed and signed under the authority of a registered Chartered Accountant. 

Form of the Solvency Certificate:
The relevant bank issues the solvency certificate on the letterhead of the said bank. The contents of the certificate can be worded slightly differently, but it shall always be to establish the applicant's financial capacity. It is further specified that the bank is not a guarantor for any of the applicant's transactions, although they are the authority issuing the solvency certificate.

Fee:
Different banks issue solvency certificates and each such bank has some specific additional procedures or policies. Therefore, each bank also has a different fee requirement for issuing solvency certificates. 

Procedure for the Application:

• The applicant needs to procure the duly filled-up application form or request form mentioned earlier.
• As specified, the applicant needs to procure all the aforementioned requisite documents along with the authorizations or signatures of the relevant qualified persons or banks. 
• Along with the original copies of all the requisite documents, the applicant also needs to furnish photocopies of each document and attach them to the request form. 
• Upon completing all the formalities, the bank shall carry out the necessary verification procedures and issue the solvency certificate to the applicant. The period between the application and the issuance of the insolvency certificate is generally seven days or one week.