Yes. Resident Indians are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act, 1961. Interest repayment of 1.5 lacs p.a. can get you a tax saving up to about Rs.50,490 p.a. (above 30% tax bracket) Moreover, you can get added tax benefits under Sec 80 C on repayment of principal amount up to 1 lac p.a. that can further reduce your tax liability by about Rs.33,660 p.a. You are advised to check with your tax consultant for the latest changes in tax laws.