The Bank of India interest certificate is an important document that helps you understand how much you have paid as interest. Mostly, people use the interest certificate to claim income tax deductions. If you are holding a savings account with the bank, you can also get an interest certificate showing the interest on savings provided by the bank for a certain period of time. Bank of India education loan interest rate is 1 Year RBLR +1.70% on loans up to INR 7.5 lakh and 1 Year RBLR +2.50% for loans above INR 7.5 lakh.
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What is the Bank of India Interest Certificate?
A Bank of India Interest Certificate is an official document provided by the Bank of India. It shows the details of the interest paid or earned on a loan or deposit account during a specific financial period, usually a year. Bank of India interest certificate is essential for tax filing purposes, as it helps account holders claim deductions on the interest paid on loans, such as home or education loans, under applicable sections of the Income Tax Act. You can claim tax deductions on the interest paid under Section 80E of the Income Tax Act, 1961.
Why Do You Need the Bank of India Interest Certificate?
The Bank of India Interest Certificate is essential for individuals to report and claim tax deductions on interest paid or earned during a financial year. For education loans, the certificate helps in availing tax benefits under Section 80E of the Income Tax Act, 1961. It also provides a clear record of interest transactions. You can also request an interest certificate for a Bank of India personal loan. Check more details below:
- The Government of India offers tax deductions on the interest paid on education loans. To claim this benefit, you must submit the interest certificate when filing your income tax returns.
- The certificate also serves as a record of the interest paid over a financial year, helping you keep track of your loan repayments.
- Having a clear picture of the interest paid can help you make informed decisions regarding early repayments or pre-closure of the loan.
Also Read: Check here all the details on Bank of India education loan documents required
How to Obtain Your Bank of India Interest Certificate?
You can visit your nearest branch and get an interest certificate or download it online through the Bank of India’s net banking portal. For online access, you need to log in to your account and go to the deposits section or loan account section, as per the requirement. Check the steps involved below:
- Log in to your BOI Net Banking account.
- Visi the loan account section.
- Select your education loan account.
- Click on ‘interest certificate’
- Download the certificate and save a copy
Key Components of BOI Interest Certificate
Bank of India Interest Certificate contains details such as the account holder’s name, account number, and the financial year for which the certificate is issued. It shows the total interest paid on loans or interest earned on deposits. Once you receive the interest certificate, you’ll find key details such as:
- Loan account number which is the unique identification of your education loan.
- Total interest paid i.e. the total amount of interest you have paid during the financial year.
- Borrower details which is your name and other basic information like contact number and details of the loan.
- Period of interest which specifies the financial year for which the interest has been calculated.
Also Read: Having a bad credit history? Check out how to avail of personal loans with low CIBIL scores
Tax Benefits of Section 80E for Education Loans
Section 80E of the Income Tax Act allows you to claim deductions on the interest paid on education loans for up to 8 years or until the interest is fully paid off, whichever is earlier. There is no maximum limit on the amount of interest you can claim under Section 80E. However, only the interest portion is eligible for tax deduction, not the principal amount. This benefit applies to loans taken for higher education, including for students studying abroad.
- The Bank of India Interest Certificate is essential for filing tax returns and claiming deductions.
- You can easily access the certificate online or by visiting the nearest BOI branch.
- The certificate helps you track your loan repayment progress, especially for long-term education loans.
The Bank of India Interest Certificate is an important document for students who take education loans. It helps you stay informed about your loan payments, track interest amounts, and claim tax benefits. Check some FAQs based on the BOI interest certificate below:
FAQs on Bank of India Interest Certificate
You can get the interest certificate through BOI Net Banking by visiting the loans section or by visiting the nearest branch to request a printed copy.
BOI interest certificate shows the interest paid on your education loan during the financial year which helps you claim tax deductions and track repayments.
Yes, you can use the interest certificate to claim tax deductions on the interest paid under Section 80E of the Income Tax Act.
No, the certificate only covers the interest portion. The principal amount is not included in tax deductions.
You should request the certificate annually after the financial year ends to use it for tax filings and loan management.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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