All lender that offer home loans allow borrowers to ask for a home loan provisional certificate and a home loan interest certificate.
A home loan interest certificate details the status of the interest paid and the interest remaining on the current Home Loan. A home loan provisional certificate is a more detailed document that enumerates the number of EMIs paid, the currently remaining loan amount, and the currently remaining interest amount and the rate of interest on the loan. However, in everyday parlance, home loan interest certificates and home loan provisional certificates are also used interchangeably.
Besides understanding the current financial situation of the home loan. Home loan provisional certificates are also required by the borrower to claim income tax rebates.
Most lenders have the provision to download the home loan provisional certificate online, from their respective customer helpline portals and applications. In the case of Bajaj Housing Finance Home Loans, one can download the Experia App to access the same.
Alternatively, the borrower can contact a branch of Bajaj Housing Finance in the vicinity and talk to the BHFL customer care. Upon verification of the identity of the borrower, the customer care personnel will ask for the details of the home loan for which these documents are required.
The customer care personnel may request the borrower to make a plain paper application asking for a current copy of these documents and then provide the borrower with a printed copy of the home loan provisional certificate and the home loan interest certificate.
Borrowers of home loans can file for income tax returns using a home loan provisional certificate. Home loan tax benefits that can be availed of from the government include reimbursement of the principal amount paid back and reimbursement of the interest paid in a financial year.
Under section 80C, the principal amount repaid in a home loan, stamp registration fee and stamp duty charges can be claimed, up to Rs.1.5 lakh.
Under section 24 of the Income Tax Act, repayment of interest on a home loan can be claimed by the borrower. The total amount that can be claimed under section 24 is Rs.2 lakh. However, if the home loan is taken in the names of more than one applicant, each applicant is entitled to file a claim up to Rs.1.5 lakh under section 80C and Rs.2 lakh under section 24 of the Income Tax Act.
In such cases, each applicant must procure their own home loan provisional certificate for the given financial year, detailing the percentage of their ownership of the property and the percentage of the loan in their name from the bank or the lending financial institution.
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Last update on 11-Mar-2021
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