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CA Certificates Banks Ask For: End-use, Stock, Book Debts and Net Worth
The CA certificates banks and NBFCs commonly require from borrowers — at sanction, disbursement and throughout the loan — and how to keep them accurate and on time.
Think Filing Team30 September 2026 1 min read
Lenders rely on chartered accountants' certificates to assess, disburse and monitor loans. Knowing what's coming helps borrowers prepare. This guide covers the common ones.
At Sanction
- Net worth certificates for promoters and guarantors.
- Turnover and profitability certificates.
- Certified projections and project cost statements.
- Certificates of existing borrowings.
At Disbursement
- Margin certificates confirming the promoter's contribution.
- Certificates of expenditure incurred on a project.
- End-use certificates for earlier tranches.
During the Loan
- Stock and book debt statements for working capital limits.
- End-use certificates confirming funds weren't diverted.
- Covenant compliance certificates on ratios such as debt-equity or debt service coverage.
- Unhedged foreign currency exposure certificates for borrowers with currency risk.
End-use and Diversion
Lenders are expected to monitor that loans are used for sanctioned purposes. They often require end-use certificates, sometimes from the borrower's statutory auditor. Using funds for other purposes, such as unrelated investments or group companies, can be treated as diversion, with serious consequences.
Tips
- Read the sanction letter for required certificates and deadlines.
- Keep books current so certificates can be issued quickly.
- Keep loan funds traceable.
- Tell lenders early about covenant pressure.
Getting Help
Think Filing issues lender certificates in bank formats and helps borrowers stay compliant.