I am not agree with saurabh for not claiming deduction u/s 80 c, definitely you can claim deduction under this section for principal amount of loan.
Although you are staying in another city on rent but it does not mean that your own house in another city will be deemed to be let out by the income tax department. You have only one house property in your name and that may be kept for your own use as a self occupied, income tax department will not say anything that why didn't you letout your own house if you are living in another city, neither IT department take notional amount of rent for your own house. Yes, if you have two houses only then you have to select one house for self occupied and another house will automatically be deemed to be let out. But you dont have to worry bcoz you have only one house. You may keep this house as a self occupied. You dont need to show rental income for this house. If you find suitable tenant only then show rental income. But I will suggest that you should let out your house bcoz by this you can take deduction for interest amount limitlessly ie for unlimited amount.
And deduction u/s 80 c will definitley be allowed to you.
I hope now everything is clear to you.