By Chaitali Dutta

I am planning for the foreclosure of my personal loan that I opted for last year. I took a loan of 15 lakhs at 10.5 % interest for 4 years. Now, after 11 installments, I am planning to close it because of the unutilisation of the amount. What should I do?
— Rajdeep

A personal loan is a relatively high-interest loan compared to a secured loan. So if the funds are available, it would be better to pre-pay and extinguish the liability.

I have finalised a property and will have to take a loan of Rs 50 lakh. As I can repay the amount after a few years, should I opt for a 10-year repayment period?
— Anmol Sharma

When taking the loan, we should try and take a longer duration loan which comes with a lower EMI. In such a situation, a borrower can always pay part amount as and when the funds are available. This eases the cash flows during the tenure of the loan. Also, note that there are usually no pre-payment charges in a floating rate home loan. However, please clarify this while availing the loan.

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After five years of work experience, I am going to the US to do an MBA. I will fund my studies from savings and a loan. Should I take the loan from a bank in India or a bank abroad to get a competitive rate and easy repayment options?
— Suresh Dang

Your accumulated funds are in India, hence I would suggest that you take the education loan in India to avoid exchange rate risk, EMI payment ease, and the fact that there are no pre-payment charges on floating rate education loans in India.

If I take a gold loan, will I have to repay the principal and the interest amount in one go or pay as EMIs for a year?
— R S Rao

In a goal loan, both options are available. You may opt for the option that suits your cash flows. In terms of interest accrual, the former has more interest payable to the financial institution.

Me and my wife will take a joint loan to buy a flat. If she is the first applicant, will the bank give a lower rate which is given to a woman borrower?
— SubodhKumar

A few financial institutions offer concessional interest rates on home loans to women borrowers. Please ensure that her name is first in the property purchased as well.

The writer is founder, AZUKE Personal Finance Advisory.