What is a Home Loan Statement? Why is it Important?

Getting a home loan involves three steps – application, eligibility assessment, and disbursement. As soon as the loan is sanctioned and the financial organisation disburses the amount, the repayment tenure begins. Typically, a home loan is a long-term financial commitment, and the repayment period extends to 20 years or more.

This means that as you continue to make the monthly EMI (equated monthly instalments) payments, after a period, you may want to know how much you have repaid, what the outstanding balance is, and the interest paid so far. That is when you may need a home loan statement from the lender. 

 

What is a home loan statement?

A home loan statement is a document that summarises your home loan EMI payments in a particular financial year. Just like you have a passbook for your bank savings or current account, the home loan account statement is the passbook for a home loan that lists down the details of your EMI payment transactions. 

The home loan statement is also commonly referred to as a home loan provisional certificate, and it is a critical document that you must have to claim tax benefits from the Income Tax Department. 

 

What details does a home loan statement entail?

The housing loan statement of account generally entails the following details:

 

• Personal and Loan Details

The home loan statement features important personal details like your age, address, date of loan disbursement, total loan amount borrowed, loan account number, and the type of interest levied—fixed or floating. 

 

• Accrued EMI

The Bank loan statement gives you details of the EMI amount payable each month and the accrued EMI (if any) due to missed payments. 

 

• EMI Paid and Date of Payment

Getting a home loan statement from the lender is a great way to get a clear idea about the number of EMIs you have paid to date and also know the exact dates on which each EMI was paid. 

 

• Payment Mode

The statement also lets you know about the mode of EMI payments, whether they were made through post-dated cheques, online transfers, etc. 

 

• Outstanding Amount

The loan account statement lets you know about the outstanding balance amount that you have yet to repay. 

 

Why is a home loan statement important?

As a home loan borrower, a housing loan statement of account is an important document that you must get from the lender from time to time as it serves several purposes, including:

 

• Availing tax benefits

A housing loan statement is a vital document to claim tax benefits on the home loan. It shows the number of EMIs you have paid in a particular financial year and helps you know the exact tax deduction you can get. 

 

• Be updated about the loan

Getting a home loan statement lets you be updated about your EMI payments and the total amount you have paid to date, as well as keep tabs on any changes in the EMI amount. 

 

• Getting a new loan

If you want to take a new loan, then the lender may ask you to submit the home loan statement. This allows them to determine whether you have paid the EMIs on time or not. The statement also reflects the EMI amount you pay every month, and they can assess if you have the financial capacity to manage the EMI payments of both loans at the same time. 

 

How to get a home loan statement online?

Getting a home loan statement is quite easy. You can download it online from the lender's website or the home loan portal. When you apply for a home loan online, the lender generates a unique home loan account number, which you can use to log into the portal and download the home loan statement. 

You can get the home loan statement for the exact period you need. It could be for the last six months, one year, or three years, as per your need. You can also get the loan account statement via email if required and keep a soft copy for future reference. 

 

How to get a home loan statement offline?

If you find it hard to download the home loan account statement online from the lender's website, you can get it at the lender's office and request the bank statement for home loans. 

The lender may ask you to provide certain basic details like home loan account number, and also submit your identity proof like an Aadhaar Card. Make sure that you have these details and proofs handy while visiting the lender's office. 

You can request that they give you a printout of the statement or even ask them to have the hard copy delivered to your address. 

 

Conclusion

A home loan account statement is a vital document that allows you to keep track of your home loan repayments and make smart financial decisions from time to time. Besides, it also helps you to avail tax deductions.