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HRA and home loan provisions are two different issues as far as the Income Tax Act is concerned and one does not influence the other. Home loans are entitled to Tax benefits under Section 80C (Tax benefit on principal repayment) and Section 24 (Tax benefit on interest payment) of Income Tax Act. On the other hand, HRA benefit can be availed or not depends on certain situations. Let us evaluate these situations:

1. Living in your own home
If you have taken a home loan to purchase the house you are residing in then you are not entitled to the HRA benefit since you are not residing on a rented property. However, tax benefits on principal repayment and interest payments can be availed by the person.

2. Home possession in another city
For instance, you have a house in one city for which you have taken a home loan and you reside in another city due to work or similar reasons, then you are eligible to avail all the benefits including HRA, tax benefits on principal repayment of the home loan and tax benefit on interest payments of the home loan.

3. Home not ready for use
Let us say that you have a home in one city for which you have taken a home loan and you are residing on a rented property in the same city because your home is not ready for use, then in such a case you are entitled to both tax benefits on principal repayment and interest payment on home loans as well as the HRA benefit. However the claim of tax benefits on home loans can be made only when the home is ready for use in that financial year and once the home is ready to live, the HRA benefit stops.

4. Home not fit to reside
Suppose you take a home loan to buy a house and it is also ready for use but somehow you are unable to reside in it due to genuine reasons like the home is at a considerable distance from your workplace. Therefore you take a rented house near the office, so under such a situation also all the benefits can be availed by the individual. However, your employer might deny giving an HRA benefit since both houses are in the same city.

5. House gave on rent
There may be a situation that you have got the house for which you had taken the home loan but instead of using it yourself, you have rented it out and you continue to reside in a rented house then you can claim all the tax benefits and the HRA. But it should be noted that rent received by you is considered as your taxable income.
Therefore one can avail both tax benefits on a home loan and HRA provided he satisfies particular conditions.