In this article, I have explained the basic difference
between liquid and fixed assets. To obtain solvency certificate from banks, you
can show all the assets including fixed assets. But for preparing financial
proof for VISA interview, you have to provide the I-20 amount as liquid asset
only.
What is a liquid asset? List of sample liquid assets
A liquid asset is any form of asset that can be readily
converted to cash and used for immediate and urgent requirement. The conversion
of the liquid asset into cash results in no or very little loss of value. Cash
itself is a form of liquid asset. For obtaining the I-20 from the US
Universities, you need to send the solvency certificate which provides proof your
financial ability to fund your higher education in US. To obtain a solvency
certificate, you can show liquid as well as fixed assets. Following is the list
of liquid assets that can be used for US Universities applications.
- Savings Account balance – Your account balance in the savings account serves as a liquid asset. You might have multiple savings accounts in various banks. Your parents, brother or sister also might be having many savings accounts in various banks. You can obtain the latest bank statements of all these accounts and calculate the net worth of cash available and use the documents as proof of liquid asset.
- Fixed Deposit receipts – Fixed deposit receipts, preferably with maturity date not more than 1 year later is also considered as a fixed asset. The FD receipts named after any of your immediate family members can be used together as liquid asset.
- Equity and mutual funds – Your DMAT account statement with proper latest market valuation also comes under liquid asset list. Whatever equity funds, mutual funds, shares or stocks you are holding against your name are considered liquid assets and you may use the DMAT account statement as proof of liquid asset.
- Gold – Gold as an asset valued at latest market value can also be used as liquid asset proof. It is highly debated whether to use Gold as a proof of liquid asset. But, after consulting with various firms and banks, we have concluded that there is no harm to show your gold holdings as a liquid asset. The only requirement is to obtain a gold valuation certificate from local jeweler or valuator.
- Provident Fund or Public Provident Fund – If your parents have a Provident Fund account in their companies, you can use the balance of the account as liquid asset. Even a PPF account is considered as liquid fund. For company provident fund, you need to take print out of the PF statement on official letterhead of company with stamp and signature. For PPF, bank passbook is sufficient proof.
What is a fixed asset? List of sample fixed assets
A fixed asset is any form of asset that cannot be readily
converted to cash and used for immediate and urgent requirement. The fixed
asset needs to be valued based on current market value. The conversion of the fixed
asset into cash results in some loss of value. For obtaining the I-20 from the
US Universities, you need to send the solvency certificate which provides proof
your financial ability to fund your higher education in US. To obtain a
solvency certificate, you can show liquid as well as fixed assets. Following is
the list of fixed assets that can be used for US Universities applications.
- Flat or apartment - If you have a flat or apartment, then the value of the flat at current market price acts as a fixed asset. The valuation must be done by local governing body official. The valuations can also be done by an agent or a bank. You need to obtain the valuation document.
- Land or plot - If you are a land or plot owner, then the value of the flat at current market price acts as a fixed asset. The valuation must be done by local governing body official. The valuations can also be done by an agent or a bank. You need to obtain the valuation document.
