1. A provisional home loan interest certificate shows the estimated principal and interest amounts you are expected to pay during a financial year.
2. A final home loan interest certificate shows the actual principal and interest amounts paid during the completed financial year.

What Does a Home Loan Interest Certificate Show?

A home loan interest certificate gives you a yearly view of your loan repayments. The details may vary by bank, but it generally includes the following:

• Principal paid: The amount paid towards the principal from the EMIs during the financial year
• Interest paid: The amount paid towards the interest from the EMIs during the financial year
• Total repayment: The total amount paid towards the principal and interest through EMIs during the financial year.
• Charges, if applicable: If the lender has charged any applicable fees or penalties during the loan period, these may be shown in the loan statement or related records.
• Loan account details: Details such as the loan account number and the financial year covered by the certificate.
• Loan balance: Some lenders may also provide the outstanding loan amount or other loan details in the certificate.

What is the Use of a Home Loan Interest Certificate?

A home loan interest certificate can help you with tax planning, prepayment decisions, and tracking your loan repayments.

1. How Does a Home Loan Interest Certificate May Help With Taxes?

If you opt for the old tax regime, you can get tax deduction benefits on eligible home loan principal and interest payments. For example, you can claim a tax deduction on principal repayment under Section 123 (earlier Section 80C) and on interest paid under Section 22(1)(b) (earlier Section 24(b)), subject to applicable conditions. Knowing how much of your loan repayment goes towards the principal and interest helps you claim the applicable tax benefits. The home loan interest certificate shows this split.

Under the new tax regime, you cannot claim a tax deduction for home loan interest on a self-occupied property. However, if the property is let out or deemed to be let out, you may be able to claim a tax deduction for the interest paid.

2. How Does a Home Loan Interest Certificate May Help With Prepayments?

You can use your yearly home loan interest certificate to track the interest paid and plan your loan prepayments. Knowing how much principal is still outstanding can help you decide how much to prepay and how it may reduce your interest burden. Making prepayments earlier in the loan tenure can be more beneficial, as a larger part of the initial EMIs generally goes towards interest, while a prepayment directly reduces the outstanding principal.

You can also use a home loan EMI calculator to see how a prepayment can affect your loan tenure and interest outgo.

How to Download a Home Loan Interest Certificate Online?

You can download a home loan interest certificate through your bank or lender's mobile banking app or net banking portal. The exact steps and terminology may vary by lender.

Steps to download a home loan interest certificate include:

1. Log in to your bank or lender's mobile banking app or net banking portal.
2. Go to the Loans section and select your active home loan account.
3. Look for sections such as Statements, Certificates, Interest Certificates, or Tax Services.
4. Select the financial year for which you need the interest certificate.
5. Select Provisional or Final, if available.
6. Click Print or Download, and save the certificate as a PDF.

You can also get your home loan interest certificate on WhatsApp through Ujjivan SFB WhatsApp Banking.

Provisional vs Final Home Loan Interest Certificate

A provisional home loan interest certificate shows the estimated principal and interest you are expected to pay during a financial year. A final home loan interest certificate shows the actual principal and interest paid during the completed financial year.

You can generally download a provisional certificate during the financial year based on the lender's availability. The final certificate is generally available after the financial year ends and reflects the actual payments made during the year.

If you need a monthly breakup of your principal and interest payments, you can check the other options available on your lender's app or website. You can also contact your lender to get the monthly repayment details.

Home Loan Interest Certificate vs Home Loan Statement

A home loan interest certificate gives you a view of the principal and interest paid during a financial year, whereas a home loan statement is more detailed. It shows your total payments made so far, EMI breakdown, outstanding loan balance, payment history, and loan terms such as the chosen tenure and applicable interest rate.

What to Do If You are Unable to Download Home Loan Interest Certificate?

If you are unable to download your home loan interest certificate, check the following:

• Check whether you have selected the correct financial year.
• Check whether you have selected the Provisional or Final certificate, as required.
• If you are facing a network issue, try downloading the certificate again later.
• If the banking portal or app is temporarily unavailable, contact your bank and request a physical copy of the interest certificate.

Final Thoughts

Managing a home loan becomes easier when you have a clear view of your repayments. Keeping your interest certificate handy can help you stay organised when you need loan-related details for financial decisions or tax purposes. Downloading it online also saves you the effort of requesting the document manually, making it a useful record to keep with your other financial documents.

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