Yes and no. It depends on what exactly you bought with the loan. However, it can be said that you cannot take out an installment loan that you have taken out for personal purposes. Others, however, do.
Only the interest, not the repayment, is tax deductible
First of all, we want to clarify that you cannot deduct repayments from tax at all. Because the repayment portion of the monthly installment for your loan is not a revenue and is therefore not taxed. Ergo, you cannot claim the repayment for tax purposes either. If anything, you may be able to deduct the interest you pay to the bank from your tax as a fundraising expense.
You cannot deduct these loans against tax
Have you bought new furniture, a new car or a new washing machine with an installment loan? Then you cannot deduct the interest on this loan. Most private consumer loans cannot be claimed for tax purposes, because from the point of view of the tax office these are private costs and no necessary investments in, for example, your training or further education.
Even a car loan that you take out as an employee to primarily travel to work by car cannot be deducted from tax. There is a commuter fee for this. It would be like subtracting VAT on food or other everyday necessities.
You can deduct these loans against tax
It looks very different if the investments and thus the loan are used for commercial or (free) professional purposes.
For example, if you are self-employed in the field, you can certainly claim the interest on a car loan from the tax office. If you need a second home for your work, you can also deduct, for example, the interest on the furniture loan for furnishing this apartment as an employee. At the same time, however, a second residence tax is due. In the end, you should calculate how much you will save in the end. If you need a new laptop for work, you can also specify the interest when paying in installments in the tax return.
You can also deduct the interest from student loans, for example. However, this does not apply to interest-free study aid under the Federal Education Promotion Act, on the other hand, can be claimed in part from the tax office, since it must be declared as income in the tax return.
If you buy and rent a property, you can also deduct construction finance from tax. If you use the property completely privately, that is not possible. However, if there is a study in your house, you can deduct the interest on a pro rata basis. A tax advisor can explain in detail which loans are deductible in your personal case.