Whether you are a first-time buyer or looking to refinance, having clarity on what a Home Loan provisional certificate entails and how it impacts your financial planning is crucial. This knowledge is particularly important when preparing your Home Loan application, as it helps you understand the financial implications and benefits associated with your mortgage.
What is a Home Loan provisional certificate?
A Housing Loan provisional certificate is a document issued by your lender that provides a breakdown of your Home Loan payments for the year. It details the principal and interest components of the EMIs (Equated Monthly Installments) you are projected to pay.
This certificate is essential for several reasons, primarily for tax filing purposes, as it helps you claim deductions under Section 24 and Section 80C of the Income Tax Act.
Details in your Home Loan provisional certificate
A Home Loan provisional certificate is a vital document for any borrower. It contains key details that aid in financial planning and tax claims. Here’s what you can expect to find in your provisional certificate:
1. Borrower's details: Includes basic information such as your name and mobile number
2. Home Loan account number: Unique identifier for your Home Loan
3. Loan repayment details: Total amount to be repaid, including both principal and interest
4. EMI dates: Start and end dates of your Home Loan repayment cycle
5. Home Loan interest rate information: Details on the Home Loan interest rates, including whether it's fixed or floating
6. Payment updates: Amounts repaid and any changes to the repayment schedule
7. Missed payments: Notifications if there are any missed payments
8. Principal adjustments: Any changes in the loan principal amount
9. Part prepayment details: Information on any part prepayment made towards the loan
How to obtain a Home Loan provisional certificate
Getting a provisional Home Loan interest certificate from Axis Bank is straightforward. You can easily access this and other important documents online by visiting the official Axis Bank website or by downloading the mobile app.
Simply log in to your account to view and download your Home Loan provisional certificate, along with your Home Loan statement and other relevant documents. This streamlined process ensures that you have all your necessary Home Loan documents at your fingertips, whenever you need them.
Benefits of a Home Loan provisional certificate
The provisional certificate in Home Loan is an essential tool for managing your finances, particularly when it comes to tax deductions.
Provisional certificates detail the principal and interest portions of your repayments, allowing you to claim tax deductions under Section 80C for the principal amount and under Sections 24 and 80EE / 80EEA for the interest amount. This includes deductions for registration fees and stamp duty charges. To maximise these Home Loan tax benefits, it is crucial to submit your Home Loan provisional certificate when filing your tax returns.
Understanding and gathering all the documents required for Home Loan applications, including the provisional certificate, ensures that you are fully prepared for both your loan approval process and tax filing requirements.
Also Read: 10 Easy Steps For The Home Loan Application Process
Conclusion
A Home Loan Provisional Certificate is more than just a document; it is a tool that aids in your financial planning and tax management. Ensuring you have timely access to this certificate can lead to significant savings and help manage your finances better.
With Axis Bank, you can fulfil your dream of owning a home with Home Loan amounts up to ₹5 crore, flexible tenures up to 30 years, and competitive floating interest rates ranging from 8.75% to 9.15% p.a. By choosing Axis Bank for your Home Loan needs, you benefit from smaller EMIs, allowing you to spread out your payments over a longer tenure, coupled with attractive interest rates and doorstep service.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
