Bank Balance Certificate: What are its uses?

Banks issue a balance certificate as proof of funds in your bank account on a specific date. You might have to produce this certificate to apply for student loans, home loans, or other credit products. You can apply for a balance certificate either by submitting an application online or by visiting your bank’s nearest branch. Let us go through the details of balance certificates and how to get them.

What is a bank balance certificate?
 

A bank balance certificate is official proof of the balance in your bank account. The certificate provides clarification regarding the funds that exist in your bank account on the requested date. It is a crucial document most financial institutions ask for when offering loans or credit products. 

In addition, when you apply for a visa to move abroad for higher education, the authorities may want to know the financial status of sponsors and whether they can bear the expenses or not. Several government organisations need a balance certificate before giving green signals for businesses to run. 

How to get a bank balance certificate?
 

You can apply for a bank balance certificate either online or offline. Most banks provide an online facility wherein you can log into your online bank account and request a bank balance certificate. However, you can also visit the bank branch at your convenience and apply for the certificate in person. Here is how you can download the bank balance certificate online. The steps are similar for most banks.

 An online balance certificate does not need authorisation and can be submitted directly to the concerned authorities. The certificate consists of the list of all your accounts and their balances. A savings account holder in IDFC FIRST Bank gets a gamut of  banking services through online and mobile banking. Along with a high savings account interest rates, they also get free ATM withdrawals, monthly interest credit  high withdrawal and purchase limits, etc.

You can also retrieve your balance certificate offline by applying to the nearest bank branch. Once you receive the certificate, verify all the details for corrections.

How does a balance certificate differ from an account statement?
 

A balance certificate is an official document that specifies the funds you hold in your bank accounts on a particular date. It can be used for verification by various authorities. In contrast, a bank statement is the list of all the transactions performed through an account. You can get an account statement for a specific period for which you need the transaction details.

Bank balance certificate charges
 

When you opt for a balance certificate, you may need to pay a certain amount as a service charge to the bank, subject to policy The amount varies depending on the bank, and it can be anywhere between ₹50  to ₹200, including or excluding GST. You can contact your bank to get the precise charges.

With a simple online application, bank balance certificates are easy to retrieve. These are crucial documents for loan applications, getting visas for higher studies, and more. When getting your certificate, verify the details and check for inconsistencies.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.