Yes, every Credila Education Loan borrower or co-borrower (any one) is entitled to avail tax benefits on interest paid on education loan, under Sec 80-E of the Income Tax Act.
An individual can avail of a tax benefit on interest paid on education loan for self or a relative, meaning spouse, child or a student for whom the individual is a legal guardian.
An individual can avail of tax benefit on interest paid on an education loan for self or a relative, meaning his/her children, spouse or any student for whom the individual is a legal guardian.
Taxpayer can claim the benefit on the ACTUAL INTEREST PAID on the education loan.
There is NO UPPER LIMIT to claim the exemption. One will get the FULL AMOUNT OF INTEREST PAID, as the deduction.
One has to take loan from the Approved Financial Institutions* to avail this benefit. Credila is one of the approved financial institutions.
It is available for the Full Time Courses in full-time studies for any graduate or postgraduate course in engineering, medicine, management or for post-graduate course in applied sciences or pure sciences including mathematics and statistics. From 1st April, 2009 the deduction is allowed for vocational courses also.
Place of education can be India or outside India.
It continues for 8 years or until the interest is paid in full, whichever is earlier.
The Financial Institution, from where the taxpayer has taken the loan, will provide a certification, stating that the person has paid the specific amount to the financial institution towards the interest of the education loan.