Things you need to know about home loan statements

A home loan statement is an important document for staying up to date on your home loan and for claiming tax deductions on interest payments. A home loan statement can help you keep track of your yearly finances and allow you to plan your expenditure for the entire year. However, it can be a little confusing to figure out exactly how to make use of your home loan statement or even know precisely what one is if you have never taken out a loan before. Read on to find out more.

What is a home loan statement?

If you have taken out a housing loan, then at the beginning of every year, your bank will send you a statement giving some key information about the loan, including how much of the total interest and principal is due for the year. This statement can then be used to avail tax deductions by using it as a declaration of investment proof.

Tax benefits are also provided for under-construction properties as per the Income Tax Act. Your home loan statement serves as proof of the interest you pay during the pre-construction period, and deductions on this interest are repaid in 5 equal installments. The maximum total value of these deductions, however, cannot exceed Rs. 2 lakh.

The statement will show you:

• A complete history of the repayment of your loan
• The loan amount
• Start and end dates
• Interest rate
• Type of interest (fixed or floating)
• Applicable interest rate and type of interest applied
• Total amount repaid
• Details of any missed repayments and the change in the principal amount because of them
• Details of part pre-payment
• Amount expected to be repaid in a particular year

How can I access my home loan statement?

To access your yearly home loan statement at Tata Capital, simply sign in to the customer portal. You can then view and download this statement. This document will serve as a proof of every repayment you have made on your housing loan over the years, and without it, you may end up losing track of all the payments you have already made.

Also, read – Understanding of Loan Statement

What makes a housing loan statement important?

A housing loan statement is important because it provides a clear and detailed record of your loan account. It shows the outstanding principal, interest paid, EMIs due and paid, and any pre-payments made during a specific period. It helps you track repayment progress, plan finances better, and avoid missed payments or penalties. 

A mortgage loan statement is also essential for claiming income tax deductions on home loan interest and principal under applicable sections. Additionally, it serves as official proof of repayment for audits, disputes, or future loan refinancing.

How to download a home loan account statement?

The step-by-step process to download a housing loan statement is as follows:

1. Log in to your lender’s portal: Visit the bank or housing finance company’s official website or mobile app and sign in using your customer credentials.
2. Navigate to loan services: Select the home loan or loan account section from the dashboard.
3. Select statement period: Mention the required financial year or custom date range.
4. Download the statement: Click on download or view, and save the housing loan statement in PDF format for future reference.

Also, read – Find Your Loan Account Number in Seconds

How to maintain a home loan account?

Regular monitoring and disciplined financial management are essential for maintaining a home loan account. 

Here are some things to keep in mind:

• Make EMI payments on time to avoid penalties and protect your credit score.
• Periodically review your housing loan statement to track outstanding balance, interest charged, and repayment progress. 
• Maintain sufficient funds in your linked bank account to prevent payment failures.
• Inform the lender promptly about changes in contact details or income. 
• Consider making part-prepayments whenever possible to reduce the interest burden. 
• Keep all loan-related documents, statements, and tax certificates safely for future reference and compliance purposes.

Also, read – OCR in Home Loan: What is Own Contribution Amount?

What tax benefits can I avail?

You can claim a tax deduction on the interest you paid during the year under Section 24 of the Income Tax Act, up to a maximum of Rs. 2 lakh. If the property has been rented out, there is no upper limit on the amount of tax deduction. Similarly, you can also claim a deduction on principal repayment up to a maximum amount of Rs. 1.5 lakh under Section 80C if the property is not sold within 5 years of possession.

Tata Capital offers the most flexible home loan eligibility criteria and multiple repayment methods. Our home loan interest rates start at 6.70% only! With Tata Capital’s housing finance, you can buy your dream home with ease!