Question about savings with personal loan

I don't really understand this stuff so I have to ask. My mother(55) has really good credit with the bank, always pays bills on time, no purchases, no debt, and saves her money as well. She wants to get a personal loan of Є16000(16k when converted to Є from my currency which is a lot) which she then wants to put it in a savings account that pays out yearly, the savings account would give her ~Є500 a year, and the yearly payback on the loan is ~Є550, so she would have to pay back ~Є50 a year(whic