Procedure to obtain solvency certificate for higher education abroad
What is solvency certificate and why is it required?
A solvency certificate is an official document which gives proof of solvency. This document is issued by a bank or a financial liquidator. The meaning of solvency is the person's assets exceed his liabilities. In case of students who wish to study abroad, this document is particularly useful for sending to the Universities while applying itself. Any bank issues the solvency certificate to students who wish to study abroad and their Universities require this document. The solvency certificate also helps in the VISA interview where you might use it as proof of finances, but it is not recommended. Make sure your total cost value on the solvency certificate is more than the Total cost of MS degree in rupees
Compulsory documents required for issuing solvency certificate for Universities application Current Accounts statements (if available) Savings Accounts statements
Optional documents that you may include in solvency amount
Corporate Provident Fund Account statement Public Provident Fund Account statement Mutual Funds (current valuation document) Shares or stocks (current valuation document) Life Insurance policies (maturity amount) Other Investment policies (current unit valuation) Gold (current valuation document) Property or flat (valuation document)
- Fixed Deposits receipts copy
All these documents need to be submitted in photocopies. Original documents are required for verification at the time of solvency certificate application. The above documents might change from banks to banks. Some assets such as property might not be allowed by your Universities and you have to contact your University officials regarding the same. Also, some banks might not consider some assets included in the above list as valid for solvency proof.
Procedure to apply for a solvency certificate
- Get your property evaluated from any government body or any property agent. Obtain the property evaluation document and take photocopies of the same.
to a local jeweler or bank office where you can get your Gold valuated. Obtain the gold valuation certificate and take photocopies of the same. Check with your DEMAT account bank and obtain a stamped bank statement with all the share holdings and mutual funds holdings with latest market evaluation. This document is extremely essential if you are including shares in your solvency certificate . Obtain stamped Provident Fund account statement from your company accounts and take photocopies of the same. Obtain solvency certificate application form from the bank where you hold an account. Read all the mandatory and optional documents carefully and check if they are different from the list mentioned above. If different, you need to attach the mandatory documents mentioned on your form. Attach all the photocopies of the documents that you are including in your solvency amount. For e.g. attach the photocopy of your fixed deposit receipt, bank statements, etc. Submit the filled solvency certificate application form to your bank attaching all the necessary photocopies. You will be required to show originals for verification. After evaluation and verification, your application will be accepted by the bank official and you will be asked for the number of extra copies along with base copy of solvency certificate. The mode of payment will also be asked and you will have to provide either a check or account debit form for this purpose. You will get the required copies of the solvency certificate after 1-2 weeks of your application. You can then send these certificates to the Universities that require proof of funds for higher education. For more information about US University applications you can read: Step by step process for Indians to complete US Univerity applications
Solvency Certificate is one of the most important documents required by Universities for your financial proof to support your education. It also becomes extremely important for your VISA interview. But it is advisable to carry original documents during the VISA Interview.
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