A Home Loan provisional certificate is a document that borrowers can request from lenders. It details the status of the interest paid and the interest remaining on a Home Loan.
On the other hand, a Home Loan interest certificate is a detailed document that enumerates the number of EMIs paid, the remaining loan amount, the remaining interest amount, and the rate of interest on the loan.
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, one can download the certificate from the Online Customer Portal.
Alternatively, the borrower can contact a branch of Bajaj Housing Finance in the vicinity or talk to the 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.
In the case of a physical interaction, the customer care personnel may request the borrower to make a plain paper application asking for a current copy of these documents.
Also Read: Importance of Encumbrance Certificate for Home Loan
The Home Loan provisional certificate consists of the following details of the borrower:
- Name and phone number
- Home Loan account number
- Loan amount to be repaid
- Start and end date of the EMI
- Interest rate and its type
- Repaid Home Loan amount
- Occurrences of missed repayments
- Principal amount
- Prepayment-related details
A housing loan provisional certificate is used to claim various tax deductions. As per the Income Tax Act of 1961, borrowers repaying a Home Loan can claim tax deductions of up to Rs.2 Lakh on interest paid in a financial year under Section 24(b). Similarly, they can claim deductions on the principal component of Home Loan repayments up to a limit of Rs.1.5 Lakh under Section 80C.
To claim these deductions, eligible taxpayers must submit their Home Loan provisional certificates when filing tax returns. Employers also require this document to get the details of tax benefits applicable to an employee to calculate their TDS deductions.
Using a provisional certificate for a housing loan, borrowers can file income tax returns. Home Loan tax benefits include reimbursement of the principal amount and reimbursement of the interest paid in a financial year.
In the case of joint Home Loans, each applicant must procure their own 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.
Also read: About NOC for Home Loan
*Terms and conditions apply
Home Loan Provisional Certificate: FAQs
Yes, you can file an online request for a Home Loan provisional certificate from your lender. You can get this certificate through email or online banking. Just visit the lender’s official website or download their mobile application and check the ‘Documents’ section to download the Home Loan statement or provisional certificate. For Bajaj Housing Finance, you need to visit the Customer Service Portal and sign in to access the document.
Yes, you can contact customer care or visit the nearest local branch of your lender to get a Home Loan provisional certificate. After you submit a paper application containing details of your Home Loan, you will receive a printed version of this certificate. You can ask the branch representative for details on when you will receive the provisional certificate.
No, you do not need a provisional certificate to apply for a Home Loan. This document is provided by your lender for your existing Home Loan to inform you about the principal and interest components of Home Loan payments you need to make in a financial year.
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