Identity & Civil Registration#032

Understanding Solvency Certificate

Obtain a solvency certificate to qualify for government tender or contract bidding.

At a glance

Jurisdiction

State-specific (issued by Tehsildar / Sub-Divisional Magistrate / Revenue Officer; used for state and central government tenders, contracts, and licences)

Who applies

Individuals, firms, or companies needing to prove financial solvency (ownership of assets above a specified value) for participation in government tenders, obtaining licences, executing contracts, or as surety in court proceedings

Typical time

7–21 working days (varies by state; field verification of assets required)

Fee

₹50–₹200 stamp paper for the application affidavit. Tehsildar / Revenue Department processing fee: ₹50–₹200 (varies by state). Solvency amount and applicable stamp duty vary by state.

Who should use this process

✓The applicant must own immovable property (land, building) or other assets (gold, fixed deposits, vehicles) in the state, with a total assessed value equal to or greater than the solvency amount required
✓The property must be free from encumbrances (no mortgage, charge, or lien against it) or the unencumbered value must meet the required threshold
✓Applicant must be a resident of the state where the solvency certificate is sought and the property must be registered in the applicant's name in revenue records

Who does NOT need to apply

✕Leased or rented properties where the applicant is not the owner cannot be counted towards solvency value
✕Properties under litigation, attachment orders, or encumbered properties (mortgaged) can only count for the unencumbered portion of value
✕Solvency certificate cannot be obtained for assets located in a different state — a separate application must be made in the state where the property is located

Documents required

#	Document	Type needed	Purpose
1	Land / property records — Khasra / Khatauni / Patta / Jamabandi / Land Revenue Receipt (latest)	Self-attested Copy	Primary evidence of ownership of immovable property; establishes that the property is recorded in the applicant's name in revenue records
2	Property valuation — Government circle rate certificate or Property Tax Assessment from local body	Self-attested Copy	Establishes the current market / official valuation of the property for determining solvency amount
3	Encumbrance Certificate (EC) from Sub-Registrar's office (for the last 13–30 years)	Original	Confirms that the property is free from mortgages, charges, and any registered encumbrances; critical for validating the full value of the property for solvency
4	Identity proof — Aadhaar card / Voter ID / PAN card / Passport	Self-attested Copy	Establishes identity of the applicant
5	Affidavit on stamp paper declaring asset details, encumbrance status, and solvency amount claimed	Notarised Copy	Sworn statement of asset ownership and financial solvency; submitted to the Tehsildar as the application document
6	Bank statements (last 6 months) and FD certificates, if financial instruments are also being counted(optional)Required only if financial assets (FDs, savings) are being claimed as part of solvency in addition to or instead of property	Self-attested Copy	Evidence of liquid assets (savings, FDs) being included in the solvency calculation in addition to immovable property
7	Partnership deed / certificate of incorporation (for firms / companies)(optional)Required when the applicant is a partnership firm or a company rather than an individual	Self-attested Copy	Establishes legal entity status when a firm or company is applying for the solvency certificate

Original documents: Carry originals only for in-person visits — do not hand them over permanently unless explicitly required.

Step-by-step guide

1
Obtain Encumbrance Certificate (EC) from Sub-Registrar's office
Both
Apply for an Encumbrance Certificate (EC) for the property to be presented as solvency evidence. The EC confirms that the property has no registered mortgage, charge, or lien for the period covered (typically last 13 years; some authorities require 30 years). Apply at the Sub-Registrar's office or via the state IGRS portal. This is a prerequisite document.
1–5 working daysSub-Registrar of Assuranceshttps://igrsup.gov.in
2
Prepare the solvency affidavit on stamp paper
Offline
Draft a solvency affidavit on prescribed stamp paper (value varies by state: ₹50–₹200). The affidavit should state: applicant's full name, address, property details (survey number, area, location, revenue records reference), current market value / official circle rate value, that the property is free from encumbrances, and the solvency amount claimed. Get the affidavit notarised by a Notary Public.
Same dayNotary Public
3
Submit application to Tehsildar / SDM office
Both
Submit the prescribed application along with the notarised affidavit, property records, EC, identity proof, and any other required documents to the Tehsildar / SDM office. Pay the applicable processing fee. Receive an acknowledgement with a reference number. Some states accept online applications through their e-District portals.
Tehsildar / SDM Office Clerkhttps://services.india.gov.in
4
Field verification by Revenue Inspector / Patwari
Offline
The Tehsildar forwards the application to the Revenue Inspector or Patwari of the area where the property is located. The field official visits the property to verify its existence, boundaries, current possession, and cross-checks the revenue records (khatauni/jamabandi). The official confirms whether the property is occupied by the owner or encroached upon.
3–10 working daysRevenue Inspector / Patwari
5
Tehsildar / SDM reviews and approves the certificate
Offline
Based on the field report, EC, and submitted documents, the Tehsildar or SDM assesses the solvency amount supportable by the verified assets. If the assets are sufficient, the Solvency Certificate is approved stating the applicant's name, asset details, and the certified solvency amount. If assets are insufficient or encumbered, the application may be returned for revision.
3–7 working days after field reportTehsildar / Sub-Divisional Magistrate (SDM)
6
Collect the Solvency Certificate
Offline
Collect the Solvency Certificate from the Tehsildar / SDM office. The certificate states: applicant's name, property details, assessed solvency amount, date of certificate, and is signed and sealed by the Tehsildar / SDM. It typically has a validity of 6 months to 1 year — confirm the validity for your specific tendering or court purpose.
Same day after approval

Government officers involved

Tehsildar

State Revenue Department (District Collectorate)

Steps 3–6

Primary issuing authority for Solvency Certificate; reviews field verification report and signs the certificate

Sub-Divisional Magistrate (SDM)

State Revenue Department / District Magistrate Office

Steps 3–6

Issues Solvency Certificate in states where SDM is the designated authority; handles higher solvency amount applications

Revenue Inspector / Patwari

State Revenue Department

Step 4

Conducts field verification of property existence, possession, and cross-checks revenue records; submits report to Tehsildar

Sub-Registrar of Assurances

State Registration Department (IGRS)

Step 1

Issues Encumbrance Certificate (EC) confirming that the property is free from registered charges or mortgages

Government portals

National Government Services Portal

https://services.india.gov.in

Links to state e-District portals for solvency certificate applications across India

IGRS UP (Inspector General of Registration & Stamps, Uttar Pradesh)

https://igrsup.gov.in

Apply for Encumbrance Certificate online in UP; also for property registration verification

Kaveri Online Services (Karnataka)

https://kaverionline.karnataka.gov.in

Encumbrance Certificate and property document services for Karnataka residents

Things to watch out for

Solvency certificate has a short validity — apply close to the tender date

Most solvency certificates are valid for only 6 months to 1 year from the date of issue. Tendering authorities and courts typically require a certificate dated within 3–6 months of the application. Applying too early means the certificate may expire before you use it.

Encumbrance Certificate must cover the entire ownership period

The EC must be current and must cover the period from the date of property purchase to the present day. A gap in the EC period (e.g., not covering recent years) will raise questions about whether the property was mortgaged during that period. Ensure the EC is applied for and issued within a few weeks of the solvency certificate application.

Government circle rate may be lower than market value — use circle rate for solvency

Tehsildar/SDM will typically accept the government circle rate (official stamp duty rate per sq. ft./sq. yard) as the basis for property valuation, not the market value. If the required solvency amount is higher than the circle rate value of your property, you will need to supplement with additional assets (FDs, gold valuation report).

Joint ownership reduces individual solvency

If the property is jointly owned (e.g., with siblings or spouse), only the applicant's proportionate share of the property's value counts towards the solvency amount. The Tehsildar will calculate solvency based on the applicant's undivided share as recorded in the revenue records.

Companies need board resolution and authorised signatory documentation

When a company (private limited or public limited) applies for a solvency certificate for tendering purposes, the application must be accompanied by the Board Resolution authorising the solvency certificate application, the company's balance sheet, and assets schedule. The process is more complex and may require a Chartered Accountant certificate of net worth.