What is Bank Balance Certicficate and How to Get It?| Kotak Mahindra Bank

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A bank balance certificate refers to an official document provided by a bank that contains details about your account balance at a particular point in time. This certificate acts as reliable proof of your financial standing and may be required for distinct purposes, both official and personal. Read on to understand the purposes for which a bank balance certificate may be required and the measures to factor in to obtain it.

Reasons for which a bank balance certificate may be required –

Visa and immigration

When looking to travel abroad, many countries require you to demonstrate adequate financial stability to support your stay. As your bank balance certificate serves as evidence showing sufficient funds, it can allow you to obtain immigration approvals or visas.

Credit application

Whether placing an application for a business, educational or home loan, banks may require a bank balance certificate to evaluate your financial potential to repay the borrowed funds. It plays an essential role in expediting your loan approval procedure.

Employment assessment

A few businesses may ask their potential employees to provide a balance certificate for performing their background checks. This assist employers in knowing the financial stability and responsibility of their prospective employees.

Scholarship applications

Students placing an application for financial aid or scholarship may require furnishing a bank balance certificate showing their finances and eligibility for the aid.

What are the measures you must follow to obtain a bank balance certificate?

Keep your savings account active

Offline or online savings account opening is the initial process towards obtaining a bank balance certificate. For opening a savings account, you must ensure to keep certain documents handy. Documents required for bank account opening include identity proof (Aadhaar card, voter ID, driving license or passport), address proof (passport, driving license, Aadhaar card, voter ID, utility bill, etc.), and signature proof (passport, driving license or PAN card).

After opening the savings account, ensure to periodically park your surplus funds to earn savings account interest constituent on the balance and keep your account active. An active savings account makes you eligible to obtain a bank balance certificate. Having an active account also makes you eligible to avail other benefits of savings' account like overdraft protection, easy transfer of funds through online mode, instant access to ready funds for both unplanned and planned expenditures, etc.

Maintain an adequate savings account balance and use online banking to fetch your bank statement

Besides keeping your savings account active, ensure you have an adequate amount of funds stored in your account for the bank balance certificate. To know your account balance, you may use the net or mobile banking app. Ensure to review the account statement for the specific date for which you need the certificate.

Request the bank to issue a bank balance certificate

After you have reviewed your account balance, request your bank for a balance certificate. This can be done by approaching your nearest bank branch for making an in-person request. While applying for the certificate, make sure you hand over all the required details such as your name, account number, the date for which you need the certificate and the purpose for availing the bank balance certificate.

Wait for the processing of the certificate

Your bank will issue your bank balance certificate once it has authenticated the details provided by you. Note that the issued certificate will contain all crucial information including your account number, name, account balance and the purpose for which the bank has provided the certificate.

Conclusion

A bank balance certificate acts as a valuable document showing your financial standing. Whether for loan applications, visa purposes, scholarship applications and other purposes, having a balance certificate readily with you is important. However, before you request this financial document, ensure to maintain an adequate savings account balance, and keep your account active.

Also Read About: निवेश और बचत में अंतर

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.