What is Home Loan Statement? Why is it Important?

Home Loan Statement

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Home Loan Statement

Home loan payment is a long process which requires a lot of time and patience. Home loan payment is an amount that is paid by the borrower in return to the Loan pursuant to the provisions of the Loan Agreement. But one of the major concern is how to track the home loan amount paid to the lender.  This is when a home loan statement comes into the picture.

What is Home Loan Statement?

A Home Loan Statement is a summary that shows the record of home loan payment for a set tenure. A home loan account statement shows the opening and the end dates of the home loan tenor, the home loan interest rates (fixed or floating, total amount repaid, previous EMI, how much loan amount to be repaid and more.

If you have part-paid your loan or missed an instalment for any reason, it is also recorded in your account statement. The necessary adjustment in the principal amount is also recorded within the statement, so you have a clear and accurate picture of how much you have repaid and how much you still owe.

The statement also records every single repayment you make toward your loan, as well as the date you made the payment and the date it was credited to your loan account.

As a result, your Home Loan account statement is the most important loan document. You may lose track of your repayment if you do not have your account statement.

Details Included in Home Loan Statement

A home loan statement includes following details:

  • Total Home Loan Amount
  • Stat and End date of Home Loan Repayment
  • Home Loan Interest Rates
  • Type of Interest Rate (Fixed or Floating)
  • Loan amount repaid
  • Total Home Loan EMI Amount
  • Outstanding Home Loan Amount

Why Home Loan Statement is Important?

A home loan statement is important in many aspects such as:

  • It lets you know how much your next loan payment will be and when it will be due. A home loan account statement provides complete transparency into the payment schedule and loan repayment structure.
  • They also allow for tax breaks on home loans. Section 80C of the Income Tax Act allows a tax deduction of $150,000 from the principal loan amount. This is only applicable if the property is not sold within five years of possession. You can get a tax break on the interest you pay on your home loan. Section 24 of the Income Tax Act allows you to deduct up to $2,000,000 in interest payments. The amount of tax deduction has no upper limit if the property is rented.
  • Home loan account statements also serve as proof that you have made all of your mortgage payments. They can also make getting another loan easier because they demonstrate that you are capable of repaying the loan amount that you borrowed previously.

How to Download Home Loan Account Statement?

A statement for a home loan can be found on your lender’s app or website. To download a loan statement, you must have a password and login ID provided by the bank.

How to Get a Home Loan Statement From a Bank?

A home loan account statement is available both online and offline. Banks nowadays have made obtaining a loan statement very simple and straightforward. Online statements can be accessed from the convenience of your own home.

To obtain a loan statement online, go to the official website of your bank. Then access your home loan account. You can access your loan summary statement, provisional tax certificates, and other information through the bank’s online website.

To complete the offline process, go to your bank’s nearest branch and ask an official for the statement. When requesting the loan statement in person, you will need to provide information such as your loan account number, PAN, date of birth, and so on.

How to Maintain a Home Loan Account?

  • Make sure you understand how your home loan interest works and how it is calculated.
  • No matter what, always pay your credit card bill before or on the due date. If you are going to miss an EMI, notify your lender or bank first.
  • Set up an auto-pay or direct debit pay for your bills to deduct money from your chosen bank account automatically. You won’t have to worry about late fees this way. Make sure you have enough money in your account if you set up an auto-pay. If you don’t, you may be charged a fee for being unable to pay.
  • If you pay more than the minimum amount due each month, you could save years off your loan.
  • Make sure you understand and read the terms and conditions of your loan account so there are no surprises when you receive your home loan.

Conclusion

The home loan account statement is an important document that can be used to verify your loan payment history and help you save money on taxes. Make sure you understand the home loan interest rate you choose and how it works so there are no surprises when making loan payments. Banks now send your loan statements to your registered email address for added convenience. There are no fees for obtaining the statement either offline or online.

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