Provisional Real Estate Credit Certificate: what is it and how to get it?

The banks give you a provisional mortgage certificate summarizing your loan, including interest and principal for the current financial year. Your home loan offers you certain tax advantages. Upon payment of the EMIs of the home loan, you are entitled to a tax benefit of 80C (Income Tax Act) for payment of principal and 24 u/s for payment of interest on the loan, subject with a maximum limit of Rs 1.5. lakh and Rs 2 lakh, respectively.

A provisional certificate helps borrowers know the payment of principal and interest on their existing home loans. Let’s see how provisional mortgage and interest certificates can help you file and obtain tax advantages.

What is a Provisional Mortgage Certificate?

When you take out a home loan, the lender provides you with a repayment estimate statement at the start of the year, along with a breakdown of the interest and principal you must pay to the bank according to the interest rate and fees. in force.

Read also: Home loan balance transfer: when should you opt for it?

Adhil Shetty, CEO of, explains: “This declaration is called a provisional mortgage certificate. It is simply an estimate of your repayment according to the conditions agreed at the time of the loan agreement and the interest rate in force.

Why do you need this certificate?

Employers generally require an estimate of the tax savings employees expect in a fiscal year. Therefore, if an employee has taken out a home loan and is seeking tax deduction benefits under Sec 80C, Sec 24, Sec 80EEA, etc., they must provide details of the interest rate estimate and repayment of the principal at the beginning of the financial year. Thus, banks provide borrowers with an interim home loan certificate which includes all the details such as estimated interest and principal payment during the year, current loan outstanding and estimated loan outstanding at the end of the exercise. The borrower can provide a provisional certificate of mortgage to the employee so that he determines the TDS accordingly.

Shetty adds, “It consists of details such as actual interest charged on the loan, interest and principal paid by the borrower during the fiscal year, amount of loan remaining, current EMI, etc. This certificate establishes the tax deductions you can claim due to the principal and interest of your home loan when filing your returns. »

Also Read: The Fine Print – Want Coverage for Your Home Loan EMIs?

How to obtain a certificate of interest on a mortgage?

You can request a home loan interest certificate from the lender through online banking, by emailing or contacting customer service, or by submitting a request at your local bank branch. If you have taken a home loan jointly, you can get the provisional home loan certificate from the bank with the bifurcation of details according to the percentage of ownership of the property and the loan.