The education loan should be taken from banks or financial institutions registered under the Banking Regulations Act 1949, or from charitable trusts approved under Clause 23C of Section 10. A loan from relatives, friends and unauthorised sources do not qualify for 80E deductions.
Section 80E is a wonderful option to save some extra money from the tax ambit. Every individual taxpayer who is paying for the education loan should take advantage of this tax-saving benefit.