07 July 2023Quick answer: A net worth certificate is a Chartered Accountant's certificate of the value of a person's or entity's assets minus liabilities on a given date. Beyond visa applications, it is commonly required for bank and education loans (the borrower's or guarantor's net worth), government and private tenders (the bidder's financial capacity), and registrations or licences that set a minimum net worth. Each purpose has its own basis of valuation and format, so the certificate must say who it is for and on what basis it was prepared.
Updated: 23 October 2026 | Regi Tom Antony & Associates, Chartered Accountants, Kochi
For visa purposes, see our separate guide on net worth certificates for visa applications. This guide covers the other common uses.
Where is a net worth certificate needed apart from visas?
| Purpose | Whose net worth | Usual basis |
|---|---|---|
| Bank loans, loan against property and credit facilities | Borrower, promoter or guarantor | Assets and liabilities on a recent date, supported by documents; property often at market value with a valuer's report |
| Education loans | Parent or sponsor (co-borrower or guarantor) | Personal assets and liabilities of the sponsor |
| Government and private tenders | Bidding company, firm or individual | Usually as per the latest audited financial statements, in the format prescribed in the tender document |
| Registrations and licences with a minimum net worth | Applicant entity | As defined by the regulator concerned |
| Admission of a partner, business sale and due diligence | Individual or entity | As agreed between the parties |
Bank loans and guarantees
Banks and NBFCs ask for a net worth certificate when they assess home loans and loans against property beyond income alone, business loans where the promoter's net worth is part of the credit decision, personal guarantees by individual guarantors, and enhancement of cash credit or overdraft limits. For guarantors, banks often want both an income certificate and a net worth certificate, so confirm the exact requirement with the bank first.
Registrations and licences that need a minimum net worth
Several regulatory registrations require a CA-certified net worth in a prescribed format, for example SEBI registration as an investment adviser, research analyst or portfolio manager, stock broker registration, NBFC registration with the RBI (minimum net owned fund), and insurance broker licensing with IRDAI. Always use the regulator's current format and definition.
How is net worth computed for a company or firm?
For a company, net worth is generally taken as paid-up share capital plus reserves created out of profits and securities premium, less accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as defined in section 2(57) of the Companies Act, 2013. Revaluation reserves and reserves from write-back of depreciation or amalgamation are excluded. For partnership firms and LLPs, it is usually partners' capital plus current accounts as per the audited balance sheet. Where a tender document or loan sanction defines net worth differently, that definition applies.
How is net worth computed for an individual?
For an individual, net worth is the total of assets (bank balances, deposits, investments, EPF/PPF/NPS balances, immovable property, vehicles, jewellery and business interests) less liabilities (home, vehicle, personal and business loans, credit card dues and guarantees given). The certificate states whether assets are at cost or at market value; market values of property are normally supported by a registered valuer's report.
Documents usually required
- PAN and address proof of the applicant
- Bank statements and deposit certificates as on the certificate date
- Demat and mutual fund statements
- Property documents and, where market value is used, a valuer's report
- Loan statements showing outstanding balances
- For businesses: audited financial statements, partnership deed or share certificates, and where needed a provisional balance sheet
- The tender document or bank's format, where a specific format is prescribed
What makes a certificate acceptable to banks and tender authorities?
- Issued by a practising Chartered Accountant on letterhead, with membership number and firm registration number
- A UDIN (Unique Document Identification Number) generated on the ICAI portal, which the recipient can verify online
- A clear statement of the date, the purpose, the person or entity covered and the basis of valuation, with a note on any item based on self-declaration
- The prescribed format, where the bank, regulator or tender specifies one
Frequently asked questions
How recent must a net worth certificate be?
Most banks and tender authorities accept certificates dated within the last three to six months, but the requirement in the sanction letter or tender document governs.
Can the same certificate be used for a visa and a bank loan?
Usually not. The purpose, date and basis of valuation differ, so a separate certificate is issued for each use.
Is a net worth certificate the same as a CA certificate of income?
No. An income certificate confirms earnings for a period; a net worth certificate states assets minus liabilities on a date. Banks often ask for both from guarantors.
Regi Tom Antony & Associates issues net worth certificates for loans, tenders, registrations, education loans and visas, with UDIN, from Kakkanad, Kochi. Write to letstalk@rtaandassociates.com.