Unsecured Loan

Have taken Unsecured Loan for my sister's education which was directly debited in Bank A/c..
Monthly Interest was paid for couple of quarters..
Now want to return that loan amount..

Query is..

1) From Tax perspctive, do i need to show reverse effect of giving back that loan amount from same bank account only or can give back from any other mode??

2) Can i use interest paid for that unsecured loan for tax deduction?

Thanx in Advance..