USA

WHAT IS A BANK CAPABILITY CERTIFICATE?

As you plan to study abroad, a fact that stands true is that it is a costly affair. Keeping aside the college fees and other study related costs, a student also has to pay for the accommodation, food and other essentials that he/she requires during the tenure of the course. As the universities do not like drop-outs midway due to financial factors, they try to ensure that a student (or their parents) is capable of bearing the expenses involved. They thus ask for a Bank Capability Certificate from the student for the same. A Bank Capability certificate is a declaration from the bank, given to the student in the form of a letter for his/her studies abroad. There are certain points however that we need to keep in mind:

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WHAT IS AN APPLICATION LETTER?

Application Letter – The student has to submit a letter with a duly filled application form for the Bank capability certificate to the respective bank that you / your parents hold an account with for a long-term (exceeding 5 years). A sample format for the letter that you can send to the bank along with the application form :

       From,

       Name of parent

        To,

       The Branch Manager

        Name of Bank

        Branch address

        State with Pin Code

 

Sub: Issue of Bank capability certificate

Dear/Respected Sir/madam,

I ______________ have been a customer of your bank since DD/MM/YYYY (you will find a Date of Joining on your pass book or net banking portal). My ward _______________( name of student) is pursuing further education in ________________( Name of University) for the duration of two/three/four years.

The total expenses involved in the proposition are __________ (total amount in the foreign currency for all years). This amount involves the tuition fees, cost of accommodation and other expenses that my ward may incur during his/her stay. Kindly issue a bank capability certificate for the same with respect to my records with the bank. Thanking you,

 

Yours truly,

Name of parent (with signature)

 

WHAT TO KEEP IN MIND FOR APPLICATION LETTERS?

• Ensure that there is no mistake in the application form and that the fields relevant to your admission in the desired college/ university are duly marked and filled
• The Bank needs to issue the letter/ certificate on the official Bank Letterhead.
• There needs to be a sign and seal of the concerned authorities involved.

HOW DOES A CAPABILITY CERTIFICATE LOOK?

The letter/ certificate have to be in the specified format:

• If your university has given you a format, follow it.
• If you don’t have a format from the university, this is a sample of a format commonly used :

---------------------- SAMPLE  BELOW ---------------------

Name of the Bank,                                                                                                           Date:

Branch ( generally the head branch of city is mentioned)

State Country

PIN Code

 

To, Name of the University/ whomsoever it may concern

Sub : CAPABILITY CERTIFICATE

M/s _______________________________(Parents name)

This is to certify that in our opinion and to the best of our knowledge and information available as per the records of the Bank, Mr./Mrs./Ms. _(Parents Name)__, is a customer of our Bank and branch since DD/MM/YYYY and we find them capable of meeting the tuition fee, living and all other expenses in respect of their daughter/son/ward, _____ (student's name) undergraduate studies for two/ three/ four years at _________ (name of college/university), amounting to (Currency) _________ (For e.g. USD 30,000) . This letter hereby certifies that

This letter hereby certifies that

Thanking you,

Branch Manager/ Authority ( Name and Signature)

Name of Bank ( with Signature and stamp )

 

------------------------ SAMPLE ENDS --------------------------

After the application and ecieving the bank capability certificat, you can submit the same to the university with your admission and other application documents. Note: To use the Bank Capability certificate for multiple applications, the same needs to be xeroxed and attested by a Gazetted officer or via legal proceedures as prevalent in your country, for it to stand admissable.