People take loan for pursuing there higher studies.This mostly includes MBA, MS from abroad, and some other post graduation courses which require huge amount
So the question arises Is taking loan gives tax benefit?
The answer is not much. The tax rebate will only be on the amount which would be paid as interest. For example, you have taken a loan and now you are paying 50,000 amount just as
interest on the loan per year. Then on that 30,000, you would not have to pay tax. It is not that you have the benefit of 30,000. Suppose 30% taxable income then you will save only
9,000 in tax for one year. So its much better if you have your own money than invest than instead of taking loans. Also, loans are generally at around 8% per annum. That means,
if you are paying some amount after 5 years than 8*5=40% interest on that amount will have to be paid.