New Delhi, Feb. 19 -- Can you get tax benefits for personal loans? While personal loans, unlike home loans, do not outright qualify for tax benefits, if you use it for home construction, purchase or renovation, you can claim deductions on the interest paid. Similarly, you can get tax benefits on the interest paid on personal loans used for meeting education expenses. You can also get deductions for interest paid on personal loans used for business purposes.

"While personal loans are usually unsecured, and payment of interest is not necessarily tax-deductible, it is the use of the loan proceeds that comes into play for any possible tax advantages," says Mukesh Pandey, director, Rupyaa Paisa, a portal that reviews loans.

Under 'Section 80...