Networth Certificate for Bank Loan

While applying for loan or credit, banks ask for a networth certificate as it shows the ability of the borrowers to repay the loan amount. Networth Certificate works as an essential document while applying for loan. Without this certificate, applying for a loan may seem difficult. One can get their certificate by consulting with a chartered accountant. This certificate works as a proof while applying for a loan. Read this article to know every requirement to obtain a networth certificate for a bank loan.

What is a Networth Certificate?

A networth certificate is an official document certified by a chartered accountant. It helps in many processes such as to obtain bank loans, credit, VISA, etc. It should be recommended while applying, one should hire an experienced chartered accountant or consultant team to get their certificate. Networth Certificate requires certain documents or information while applying for it. It can be obtained within 24 hours with Bizfoc. This certificate needs complete details of assets or liabilities. It can mislead the certificate if individuals hide their net worth. While applying for a loan, it fastens the speed of the process.

Why is it needed for Bank Loan?

While applying for bank loans, banks ask for a networth certificate. Following are the reasons why it is needed:

1. Calculating Networth: This certificate helps in calculating the networth of an individual or organisation, which helps in predicting how much credit should be given to that particular person or entity.
2. Repay Understanding: This certificate helps in understanding more clearly the capacity of an individual to repay his/her loan.
3. Originality or Work as a Proof: Networth Certificates work as a proof for banks as it is an official document stating that the written networth is original and complete networth of an individual or organisation.

There is no other income or debts and hence it is required to generate your certificate from a trustworthy organisation.

Documents Required for Networth Certificate

There are certain documents required for a networth certificate. These documents includes:

• Identity card such as PAN Card, Aadhar Card, or any other
• Address proof such as Passbook, electricity bill, or any other
• Email, Phone Number or any other Contact Information
• For outlining income & expenses Income Statement is required
• For accurate assets & liability Balance Sheet is needed
• Bank statement to ascertain bank balance
• Property Documents for asset verification
• Investment Records for highlighting the current worth of all investment
• To provide a comprehensive account of liability, Loan Documents is needed
• To provide a comprehensive overview of income & tax obligation, Tax Returns is required

Fee Structure of Networth Certificate

The fee for Networth Certificate is just ₹2500/-. One can get their certificate by paying this amount and fulfilling other documentation processes. However, this certificate is required for various purposes other than bank loan such as while applying for visa, demat account opening, etc.

How to get a Networth Certificate for Bank Loan?

To apply for a networth certificate for bank loan, one need to follow these steps:

• Step 01: Connect with a Chartered Accountant: The very first step is to consult with a chartered accountant who can prepare a networth certificate for a bank loan. Bizfoc has a team of qualified chartered accountants.
• Step 02: Documentation: Once you connect with Bizfoc, our CA will assist you in gathering your documents for further processing. They will make sure if all the documents are accurate and up-to-date or not.
• Step 03: Fee Payment and Review: Once you gather all the documents, you need to pay a fee for the certificate, and then our CA will review your application and documents. Remember, there is no external fee other than ₹2500/-.
• Step 04: Verification: Once the application is submitted, our CA will prepare and certify your Net Worth Certificate upon successful verification. After final verification, you’ll get your networth certificate for a bank loan.

Who can certify a Networth Certificate?

A Networth Certificate for a bank loan can be certified by a chartered accountant only. No one other than a chartered accountant can issue a networth certificate for a bank loan. To get an authentic networth certificate, you should consult with a genuine organisation. Bizfoc have great reputation in dealing with networth certificate.

• Step1: Conversion of Company into a Normal Company

  The first step in this procedure is to convert into a normal company. For this purpose, the applicant company has to submit an application to the MCA along with the documents mentioned above.

• Step2: Scrutiny of Application and Documents

  Once receiving the application and the documents, the authorities must do legal checks and ensure compliance under the governing legislation.

• Step3: Approval by MCA

  An approval is granted by the MCA for the conversion of the applicant company if they do not find any errors or any kind of mismatch during the verification of documents.

• Step4: Application for Strike Off Section 8 Company

  After conversion, the formalities for the procedure of strike off are addressed by the applicant. The applicant of the application needs to submit the application to the MCA along with the necessary documents and required fees.

• Step5: Final Approval for Strike Off

  After verification of the application and the supportive documents, approval for the strike-off is granted to the company.

Networth Certificate Format for Bank Loan

A networth certificate is a document which includes all the assets and liabilities of an individual. It shows the overall financial position of an individual or a company. The format of networth certificate includes the following details: 

• Name of the applicant
• Date (when net worth is calculated)
• Networth Amount
• Place where the meeting is held 
• Name of accounting firm
• Date (When the certificate is certified)
• Asset detail
• Liability detail

Make sure all the information provided by the applicant is valid and appropriate. Incase of any mistake or false information certificate can be canceled. The detailed format of networth certificate is as follow:

NETWORTH CERTIFICATE

TO WHOM SO EVER IT MAY CONCERN

Net Worth Certificate of Name Primary Person__________ (Adhaar Number:__________) residing at ( Complete Adress)__________  as on (date)__________ is ₹ __________ & _______(in words). It is further certified that the computation of Net worth, based on my/ our scrutiny of the books of accounts, records and documents, is true and correct to the best of my / our knowledge and as per information provided to my / our satisfaction.

Detailed Bifurcation of Net worth are as follows:

This Certificate issued on the basis of documents submitted before us. This Certificate is issued for the purpose of ____________.

For Chartered Accountants

Partner Name

Partner Signature

Membership No:

Date:

Place:

UDIN: 

Schedule A: Movable Assets

Schedule B: Immovable Assets

Schedule C: Liabilities

Why Choose Bizfoc?

Bizfoc offers a seamless solution for obtaining a CA-certified networth certificate for bank loan, simplifying the process for individuals or businesses with our experienced chartered accountant. We will guide you throughout the process in gathering documents and ensuring accuracy and compliance. Not only this our team will assist you after the process for post requirements.

Conclusion

Networth Certificate for bank loan required certain documentation. The fee for the certificate for bank loan is ₹2500/-. This is an essential document, one required for multiple purposes. It is needed for bank loans as it helps in calculating net worth, repay understanding, checking originality, etc. To obtain a networth certificate one needs to follow some steps. Bizfoc provides a hassle free procedure to obtain your certificate.

Frequently Asked Questions (FAQs)