Tools
Tax Benefit Estimator
Find out how much tax you save by taking a loan with interest deduction benefits under Indian Income Tax Act.
Annual Tax Saving
₹6.0K
over the loan tenure: ₹17.9K
This is an estimate under the old tax regime. Under the new regime (default from FY 2024–25), deductions under 80E and 24(b) are not available. Consult your CA before filing.
Tax Benefit FAQ
Education loans (Section 80E, full interest deductible, no cap) and home loans/renovation loans (Section 24(b), interest deductible up to ₹30,000–₹2L/year depending on the property) are the main personal-loan-adjacent categories with interest deductions.
Not by default. A general-purpose personal loan only qualifies if you can show the funds were used for one of the specific eligible purposes (education, home purchase/renovation, or business), with documentation.
No — under the new tax regime (default from FY 2024–25), deductions under Section 80E and 24(b) are not available. These benefits only apply if you opt for the old tax regime.