Can I take an education loan to fund my sister’s education? Will I get any tax benefits in doing so?
Amrinder Aneja, Chandigarh
In case of education loan, you could claim deduction under Section 80E of the income-tax Act on the interest repayment on the loan. However, this concession is available only in case of the loan being taken to fund the education of your children or spouse or in case you are the legal guardian. A loan to fund your sister’s education will not allow you tax concessions, unless you are the legal guardian. There are other conditions that you need to be aware of pertaining to education loan to qualify for the tax benefits such as the course eligibility and any other terms that the lending institution may have.
