Your queries: Loan against MF units cheaper than personal loan

financialexpress.com:

By Chaitali Dutta

* Is it a good idea to pledge some mutual fund units to take a loan or should I take a personal loan?

—Alok Ranjan

A loan against the MF units is better in the sense that the interest rate would be lower. Also, you are not doing away with your assets but rather leveraging them.

* Should I try to prepay some amount every month to bring down the interest amount on my home loan?

—Chandan Bhopna

Absolutely, with the interest rates being high currently, it makes financial sense to pay off extra amounts over and above the EMI.

* My brother and I inherited some agricultural land. We plan to set up organic farming and intend to take a loan. As I am a salaried employee, can I get a bank loan for the venture?

—Suresh Kumar

The loan is possible, which will come under micro-funding by financial institutions. However, do check with your employer before finalising the loan. While in a corporate job, approval is required if an employee wants to get into an additional side business.

* I had taken a loan against property two years ago and the interest rates have grown in the last one year. What should I do to reduce the interest burden? I do not have cash to repay the loan.

—Manjul Singh

It would be difficult to reduce the interest outgo without reducing the interest rate. You may put in an application to your bank to increase the tenure of the loan. If the application is accepted, you may have some relief by way of reduced EMI.

* My son is going abroad for higher education. I will be able to fund him from my savings for the first six months and then have to take a loan. Should my son take a loan from a bank in the US and what would be the terms and conditions?

—Abhishek Sharma

It would be easier to take a loan in