"In computing the total income of an assessee, being an individual, there shall be deducted, ....., any amount paid by HIM in the previous year, ..., by way of interest on loan taken by HIM........."
Accordingly the loan should be taken by the individual himself (the loan can be for his higher studies or that of his relative). The loan should be in the name of the individual.
In this case the loan is in the name of the wife and accordingly the husband CANNOT claim deduction of interest paid.