DEAR SIR, SOME HOME FINANCIERS OFFER TOP UP LOANS TO THEIR EXISTING CUSTOMERS FOR PURPOSES e.g. MARRIAGE/ HOUSE REPAIRING/ FURNISHING/ OR ANY OTHER PERSONAL PURPOSES i.e. A PERSONAL LOAN. THE SECURITY REMAINS THE SAME HOUSE PROPERTY OFFERED INITIALLY AS MORTGAGE AGAINST THE ORIGINAL HOME LOAN. HENCE AS I UNDERSTAND, THESE TOP UP LOANS ARE ACTUALLY IN THE NATURE OF MORTGAGE LOAN AGAINST PROPERTY.
NOW MY FRIEND HAS REQUIREMENT OF LOAN FOR FINANCING THE EDUCATION OF HIS CHILD IN A FOREIGN UNIVERSITY, FOR WHICH HE HAS BEEN UNSUCCESSFUL TO SECURE A TYPICAL "EDUCATION LOAN" FROM ANY BANK / F.I. BUT HE HAS BEEN OFFERED A TOP UP LOAN BY HIS PRESENT HOME FINANCING BANK. NOW MY QUESTION: CAN HE USE THIS TOP UP LOAN AS AN EDUCATION LOAN AS SUCH ? AND CLAIM BENEFITS U/S 80E IN RESPECT OF THE INTEREST PAID ON THIS TOP UP LOAN? N.B. THE CHILD HAS DONE HIS CBSE +2 FROM INDIA. THANKS & REGARDS
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