Income tax deduction for home loan

In my opinion, that is not possible. 

You and your wife will have to be co-applicants for the loan.

If you are neither the owner nor the co-owner of the apartment, you will not be eligible for any tax benefits on the loan repayments.

Even if you become the co-owner of the flat and co-applicants for the loan, in that case also deduction shall be restricted to the share in the property.

Thank you.

Is there any way out, to save tax here?

Register the flat and take the loan in name of the person who wants to take benefit of the deduction.

It is possible to claim the deduction. The deduction will be available to the real owner of the property and that can be proved from the records of payment. You will have to show that the payment is made from your bank account and that you are the real owner of the property and hence all the deduction be allowed to you, being the true and real owner of the property.

It would be much much better if co-ownership is possible.

Same also applies in case of capital gain. I have been adamant on my this view since years and in my parents' case also I did the same. I received the notice and gave all the explanations and the exemption was allowed.

[Well, It is important that AO is also a like-minded individual.]

Your call.