People who have taken out a home loan and are paying it back run the risk of forgetting to make loan repayments. A home loan statement can be helpful in this situation since it gives a precise breakdown of the amount of the loan that has been repaid and the remaining balance.
What is a home loan statement?
The lengthy home loan process is completed once the borrower has paid back the whole amount. A home loan statement is a thorough breakdown of a borrower’s loan repayments over the course of a fiscal year. This document is also frequently referred to as a provisional certificate for a home loan.
This declaration provides a thorough history of the whole payback period. This statement will detail any prepayments or missed payments made by the borrower or whether the payments were made in full or in part. In addition, the borrower can use this document to seek tax exemptions on their EMI payments.
A home loan statement, which displays the following, will provide borrowers with a clear understanding of their loan repayment plan, including:
- How much the borrower has paid in each EMI
- The day the payment was received
- The day the funds were credited to the borrower’s mortgage account
It enables borrowers to monitor their payments and stay hassle-free. This statement also serves as an evidence of payment. This makes it simple to close the loan at the end of the tenor easily.
What information is present in the account statement for a house loan?
The account statement contains the following information regarding a borrower’s home loan repayment.
- The entire loan amount
- EMI payment
- The beginning and ending dates of loan payback
- Fixed or variable interest rate type
- Current interest rate
- The loan’s current repayment balance
- The amount owed on the loan
How can a home loan statement help with tax deductions?
These statements serve as documentation of loan payments, which is necessary for claiming tax deductions for a mortgage.
- Borrowers can get a tax deduction on the principal amount of a home loan of up to Rs.1.5 lakh based on Section 80C of the Income Tax Act.
- Borrowers may deduct up to Rs.2 lakh in taxes from the amount of home loan interest that is owed under Section 24 of the Income Tax Act.
- Tax deductions may be made for the sum that a borrower pays in registration and stamp duty fees.
- Due to their lower prices, many people choose under-construction homes over ready-to-move apartments. It is crucial for them to understand the home loan tax benefits for under-construction properties because a home loan statement also applies in this case.
How can borrowers obtain an online home loan statement?
Obtaining a home loan statement is pretty easy, and one can get it either offline or online after a financial year ends. Nowadays, borrowers receive their home loan statements in the form of digital copies from the lender directly via email.
Borrowers can use the home loan statement and home loan EMI calculator to plan their remaining EMIs and implement strategies to reduce the interest cost.
Alternatively, borrowers can get a home loan statement online by visiting the official website of the lender and logging in to their account. They can also download the certificate and any other relevant documents from the dashboard or download it from the lender’s app.
Other than that, borrowers can visit the branch of the lending institution and provide them with the required documents to get a printed copy of the certificate.
Furthermore, borrowers should check their pre-approved offers before applying for a home loan. These offers expedite the home loan process and are available on various secured and unsecured products. To check their pre-approved offers, borrowers can enter their names and contact numbers in the pre-approved section of the website.
To conclude, borrowers should remember that a home loan statement is a crucial document they need to understand their loan repayment history. It is also an essential document for claiming tax benefits. Thus, it is needless to say that they should go through it very carefully when they receive it. In case of any discrepancies, one should immediately visit or contact the lending institution.
