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What is a Home Loan Statement? Why is it Important

Updated: Mar 21, 2022
What-is-home-loan-Statement-Why-it-is-Important

While repaying a home loan, it becomes difficult for a borrower to track how much principal amount is repaid and the total interest amount during a financial year. This is where a home loan statement helps you in tracking your home loan repayments and getting a clear understanding of the outstanding loan amount.

Read the article to understand home loan statement meaning and what makes it an important financial document for home loan borrowers.

What is a Home Loan Statement?

A home loan statement provides a detailed summary of housing loan repayments during a financial year, giving a breakdown of the total principal amount and interest amount paid during the financial year.

It is also known as a mortgage loan certificate.

The details of the statement include:

  • Details of the borrower and home loan account
  • Outstanding home loan amount at the start of the period
  • Applicable home loan interest rate during the financial year
  • Amount of each EMI paid
  • Breakdown of principal and interest amount paid during the financial year
  • Details of part-prepayment (if any)
  • Loan amount repaid to date
  • Outstanding home loan amount

The statement helps you to plan your upcoming EMI payments and most importantly, it helps you to claim tax deductions on your income tax. Also, it acts as proof of payment for your home loan.

Based on the details provided in the housing loan provisional certificate, you can claim tax deductions under different sections of the Income Tax Act.

For instance, as of March 31, 2022 - You can claim a tax deduction of up to Rs 2 lakh on the principal repayment, and a tax deduction of up to Rs 1.5 lakh on the interest amount paid.

To claim the tax benefits, you need to submit the home loan statement to your employer to make necessary adjustments in Form 16.

How to Get a Home Loan Statement From Your Lender?

Getting a home loan statement is very easy and one can obtain the certificate, either online or offline, after the end of the financial year. Nowadays, most of the lenders send digital copies of the housing loan provisional certificate via email to the borrower.

To get your home loan statement online, go to the official website of your lender and log in to your account. From the dashboard, you can download home loan statements and other relevant documents easily. You can also download directly from the lender’s mobile app.

Alternatively, you can get a printed copy of the housing loan provisional certificate from your lender by visiting the branch office of your lender and providing them with necessary details like home loan account no., PAN, etc.

How the principal and interest amount will be split in case of a joint home loan in the home loan statement?

So, in the case of a joint home loan, the principal and interest amount will be split equally among the co-borrowers in the home loan statement, unless the percentage share of ownership in the property is not specified.

Wrap up

By using the details provided in the home loan statement and Home Loan EMI calculator, you can plan your upcoming EMIs to reduce the interest cost and also take steps to shorten the home loan tenure.

The details of the home loan statement may overwhelm initially, but can be very useful in reducing the homeownership cost and saving a lot of money on interest cost.

If there are any discrepancies in the record, you can instantly reach out to your lender and short out the issues.

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