Home Loan Provisional Certificate

If you plan to take out a home loan, you might come across a document called a “Home Loan Provisional Certificate.”

A Home Loan Provisional Certificate is a document issued by a lender that provides provisional details of the interest paid on a home loan during a financial year. It is essential for tax purposes, mainly to claim tax deductions on home loan interest payments.

The certificate includes the loan amount, interest rate, tenure, and interest paid during the financial year.

Importance and Use of a Home Loan Provisional Certificate

A Home loan provisional certificate is an important document the lender provides to the borrower, which outlines the amount of interest and principal paid on a home loan during a financial year. The certificate serves as proof of the amount of interest and principal paid by the borrower toward their home loan and is essential for claiming tax deductions.

In India, tax deductions can be claimed on the interest and principal amount paid on a home loan under Section 80C and Section 24 (b) of the Income Tax Act, respectively. Under Section 80C, a taxpayer can claim a tax deduction of up to Rs 1.5 lakh on the principal amount of the home loan, while under Section 24 (b), they can claim a deduction of up to Rs 2 lakh on the interest paid on the home loan.

To claim these tax deductions, the borrower must submit their Home loan provisional certificate to their employer or include it in their income tax return while filing for taxes. The certificate contains essential details such as the loan amount, interest rate, tenure, and principal and interest paid during the financial year.

In summary, a Home loan provisional certificate is crucial for individuals who have taken a home loan and wish to claim tax deductions on the principal and interest amount paid towards the loan. By submitting this certificate, they can ensure that they can claim the maximum tax benefits available to them under the Income Tax Act.

Difference Between Home Loan Provisional Certificate and Home Loan Sanction Letter

A Home Loan Provisional Certificate and a Home Loan Sanction Letter are two documents a lender provides to a borrower during the home loan process.

The lender provides a Home Loan Sanction Letter to the borrower after the loan application has been approved. This letter outlines the terms and conditions of the loan, such as the loan amount, interest rate, tenure, and repayment schedule. The letter also includes information about any fees or charges associated with the loan and any security or collateral requirements. The sanction letter confirms that the loan application has been approved, and the borrower can proceed with the home-buying process.

On the other hand, the lender provides a Home Loan Provisional Certificate to the borrower after the disbursal of the loan amount. This certificate states the interest and principal paid on the home loan during a financial year. The certificate is necessary for claiming tax deductions on the interest and principal amount paid towards the loan while filing income tax returns. The certificate contains the loan amount, interest rate, tenure, principal, and interest paid during the financial year.

How to Apply for a Home Loan Provisional Certificate in India?

Different banks may have other application procedures if you want a Home Loan Provisional Certificate in India. We will look at the application procedures for various banks in India. This will offer you a clearer idea of what to expect when availing of a Home Loan Provisional Certificate from these banks.

State Bank of India

• The SBI Home Loan Provisional certificate can be downloaded through the bank’s official website, onlinesbi.com/personal.
• To access the certificate, borrowers need to log in to the Personal Banking section of the website using their credentials.
• Once logged in, applicants must select the “Home Loan Int. Cert (Prov)” link under the “Enquiries” tab.
• No, select the account you require for a Home Loan Interest Certificate.
• The certificate can be viewed online, printed or downloaded in PDF format.
• This is a convenient way for borrowers to obtain their Home Loan Interest Certificate without visiting the bank in person.

HDFC Bank

• For an HDFC Bank Home Loan Provisional Certificate, customers can visit the following link: https://online.hdfc.com/loansapps/(S(wn5upcgbjjovmynkvj0s1h1p))/rptITCert.aspx
• Enter your loan account number and the captcha code as displayed on the page.
• The loan certificate will be displayed; you can receive it by email or post.
• The certificate will be delivered within two working days if you choose postal delivery.
• Alternatively, you can use the online access for customers link HDFC Bank provides.
• Once your login credentials are entered, you can view your interest certificate, provisional statement, and other details related to your home loan.

Axis Bank

• You can view your Axis Bank Home Loan Provisional Certificate using Internet Banking or the official Mobile App.
• To view through Internet Banking, select the respective loan account and find the ‘View Interest Certificate’ option from the drop-down menu.
• Select ‘Loans’ and then ‘Request Statement’ to view through the Axis Mobile App. Select ‘Interest Certificate’ to view your home loan certificate.
• You can also contact the customer service team at 1860-419-5555 and 1860-500-5555 or email to request the certificate.
• Another option is to visit your nearest Axis Bank branch.

IDBI Bank

Customers must follow the steps below for an IDBI Bank Home Loan Provisional Certificate online.

• Go to the bank’s official website and click on the loan certificate/ loan statement page.
• Customers must now enter all loan-related details to download the home loan statement or certificate.
• Enter the following details –

Date of Birth (in the DD-MM-YYYY format.). You may also use the keyboard close to the box and input these numbers.

• Customers must add their Customer ID Number, Loan Account Number provided by the bank at the time of approval, and PAN Card Number in the space provided.

Once the above details have been mentioned, click ‘Submit’, and your IDBI Home Loan Statement/Certificate will be displayed.

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