Salary Certificate Format for Bank Loans

A salary certificate refers to the document provided by an employer or company as proof of salary dissemination. Every employee of the company receives a formal document either in soft or hard copy, which includes gross income, deductions, loans, or any other financial activity which can affect the net income of the employee. Salary certificates provide detailed information about the breakdown of gross income every month.

Bank loans require credible proof of salary certificate or any other materialistic things to ensure that an individual can pay back while filing for a loan from a bank either for a house or car etc. Bank provides a definite period for clearing a loan in installments to relieve the pressure. While filing for a loan, it is important to keep an item of equal worth as a guarantee of paying off the loan in the due period.


Different companies have different formats…

Contents of salary certificates vary from company to company because every company follows its own rules for designing official documents.

Generally, salary certificates include the following basic information,

  1. Name of employee
  2. Designation
  3. Job description
  4. Department
  5. Name of company
  6. Address
  7. Gross salary
  8. Deductions (Medical Allowance)
  9. Net salary

These contents may vary but the overall format revolves around these.

Sample certificate format

Salary certificate format while filing for a bank loan is given below,

Salary Certificate

It is to certify that Mr./Ms./Mrs. (Employee’s name) is a permanent employee of (name of company) at the address _________, within the department of ________ at ________ designation. His/her salary and deduction for the month of ______ (year) are given as follows:

Gross Salary
Basic pay 
Medical allowance 
Fuel allowance 
Gross pay 
Home loan 
Car loan 
Business loan 
Total deductions 

Net Pay: ________

Name of company: ________

Address: ________

Contact: ________

Salary certificates are important for some reasons…

Salary certificates are considered very important as:

  • Banks use salary certificates as proof that the individual seeking a loan is capable of paying it off because of a stable salary at a reputable company.
  • A salary certificate is also used by the employees as proof of paid salary for a given month.
  • While filing for a bank loan, salary certificates provide all information about the place of employment and other required fields pertaining to the employee.
  • Personal information mentioned on the certificate can be used for tallying with already provided information.
  • Based on an individual’s salary, a span of installments can be devised by the bank.

Format of the certificate

A salary certificate is an official and legal document that is prepared by the legal team of any business or company. These certificates are designed with extreme caution because they can be claimed by employees for catering to various issues.

Additionally, templates of salary certificates are also available on the internet which can be used easily after they are downloaded from the internet. These templates are free of cost and provide ease of editing in any editing application. Thus, personal or company information can be added for a personalized touch. These templates are mostly used by small business owners with less number of employees.

See the following free template, especially as a format for a bank loan but can be used for many other situations also.

Salary certificate format for bank loan

See also: