How to Get Solvency Certificate

A Solvency Certificate serves as evidence of the financial strength of the individual or entity in question.

Why is a Solvency Certificate Required?

The significant purposes of a solvency certificate are listed below:

1. For government and legal purposes
2. For tenders
3. For Visa applications and interviews
4. Getting contracts for both Government and private enterprises

Format of a Solvency Certificate

The standard format of solvency certificate is maintained which may vary a bit depending on the issuer. Here are the details about the format of solvency certificate:

1. Applicant’s name or the name of the applicant’s company
2. The solvency amount
3. Bank attestation to prove that you are capable financially of covering the solvency amount.

Issuance of a Solvency Certificate

The details about issuance of solvency certificate are given below:

1. Issued by the revenue department and banks upon request.
2. Based on the customer's account transactions and available property documents, banks provide this certificate.
3. As confirmation of financial status of the applicant, a report from a chartered accountant can helpin obtaining a solvency certificate from banks.
4. To submit tender applications or contracts to government offices, solvency certificates issued by the banks can be used.

Documents Required for Applying for Solvency Certificate

The documents required for applying for solvency certificate is given in the list below:

1. Request form
2. Original encumbrance certificate of the property
3. Mortgage certificate
4. Chitta or Patta
5. Building value
6. Self-declaration of the applicant
7. Passport-size photographs
8. Lease agreement
9. Net worth certificate issued by chartered accountant
10. Certificate of liability amount
11. Property tax or land revenue receipt if applicable
12. Based on weight and value of gold, gold valuation certificate, issued by Banker
13. Provident fund account statement (if any)
14. Current account statement (if any)
15. Share investment (if any)
16. Copy of passport (if any)
17. Savings account statement (if any)
18. Insurance (if any)
19. Mutual fund investment (if any)
20. Property valuation certificate from a Chartered Engineer (if any)

How to Obtain a Solvency Certificate

The application process for obtaining a Solvency Certificate is generally similar across most states, with the only difference being the online portal interface, which varies for each state.

Online Application Steps:

1. Visit the homepage of the Nadakacheri website
2. Click on ‘Online Application’
3. Click on ‘Apply Online’
4. Enter your mobile number
5. Click on Get OTP’ to receive a One-Time Password
6. Click on ‘Services’, under "New Request
7. After selecting your preferred language, click on ‘Solvency Certificate’
8. Provide your personal details and choose the desired mode of delivery. Then upload the required documents and click on "Save".
9. Proceed to make the online payment by clicking on "Online Payment".
10. Select your Card Type and complete the payment process.
11. After a successful payment, an acknowledgement number will appear on the screen.

Please note that the above steps are a general outline for applying online and may vary depending on the specific state or online portal used. It is preferable to follow the instructions that are provided on the respective state's official website for obtaining a Solvency Certificate.

Offline Application Steps:

1. Obtain the Solvency Certificate application form and complete it with the required information.
2. Visit the nearest Revenue Office or Municipal Office and submit the filled-out application form along with the necessary supporting documents.

Applying through CSC or e-District Kiosks:

An alternative method to apply for a solvency certificate is through a Common Service Centre (CSC) or e-District Kiosk. Here are the steps involved:

1. Obtain the Solvency Certificate application form and ensure that you fill it out accurately.
2. Compile all the required documents as per the requirements and submit them, along with the completed application form, at the nearest e-District Kiosk or CSC.

Who Issues the Solvency Certificate?

Here are the details regarding issuance authority of solvency certificate:

1. Financial institutions and state revenue departments can issue solvency certificates.
2. Banks can issue this certificate exclusively to their customers, using criteria like account details, transaction history, and property-related documents.
3. A chartered Accountant can also help in obtaining a solvency certificate by providing the net worth certificate.

Processing Time

1. After the application is submitted with the required documents, the bank will process the application within a week and issue the Solvency Certificate.
2. When submitting the application for the solvency certificate, it is important to attach photocopies of all the documents specified by the bank official.
3. The completed Solvency Certificate request form should accompany these photocopies.
4. Additionally, it is necessary to bring the original documents when submitting the form for verification purposes conducted by the bank.

How to Download Solvency Certificate?

The steps to download the solvency certificate is given below:

1. Visit the official website through which you applied for the solvency certificate
2. Click on ‘Check Status’.
3. Enter the application number
4. Click on ‘Search’
5. To save your certificate, click on ‘Download Certificate’ after checking all the details.

How to Download Solvency Certificate Through DigiLocker?

Here are the steps to download solvency certificate through DigiLocker:

1. Create a DigiLocker account
2. Log into the account using your credentials
3. Under ‘Issued Documents’, click on ‘Check Partners Section’
4. Under ‘Partners Name’, click on the name of your Revenue Department Office
5. Click on ‘Solvency Certificate’
6. Fill in your acknowledgement number
7. Click on ‘Accept’
8. Click on ‘Get Document’
9. You will be able to download your solvency certificate linked with DigiLocker account

How to Track the Application Status of a Solvency Certificate?

The steps to track your application for solvency certificate is given below:

1. Visit the website of the state government that provides services regarding solvency certificates.
2. Click on ‘Online Application’ option
3. Select ‘Application Status’ option
4. Enter Application Number and Type
5. To get the status of application, click on ‘Get Status’ option

Note:

1. Visit the same website you applied for solvency certificate to track the application status.
2. The procedure of tracking solvency certificates may vary from one state website to another.

Fee for Solvency Certificate

The fee for obtaining a Solvency Certificate may vary among different banks. However, most banks typically charge around Rs.2000 for issuing the Solvency Certificate.

Note:

1. The bank does not bear any liability for future consequences arising from the Solvency Certificate.
2. Typically, the Bank Manager has limited authority to issue a specific number or value of Solvency Certificates.
3. If the certificate issuance exceeds the Bank Manager's discretionary powers, the request will be escalated to higher-ranking officials for approval. 
4. Solvency Certificates are granted exclusively to trusted and reputable customers, and the bank may impose a fee for issuing such certificates.