What security do you need to avail of such loans? Do you have to start repaying the education loan as soon as it is disbursed, like other loans? Or can you make payments once you complete your course and start earning?

subhs asked, I wish to buy an office for my dad. We had the plan of buying a house earlier. What kind of a loan should I go for and can I have the same benefits on property loan (office) as I had on home loan?

Harsh Roongta answers, As far as tax deductions go, it does not matter what kind of loan (personal loan or office premises loan) you take from a bank. You will get the best deal if you take an office premises loan, as it is secured and hence cheaper than a personal loan. 

soni asked, I want to do an MBA. I want to take a loan for my education and thinking to pay it with my salary every month. I can pay that much loan within 3 years. Should I go for this?

Harsh Roongta answers, Any loan taken to improve your economic status definitely is worthwhile. You can get a loan upto Rs 4 lakhs for pursuing a recognised MBA course without any security, and without the need to service even the interest amount during the study period. Your repayment begins after your course is over. Go for it.

vickee asked, Today PSU banks are better than private banks because the latter charges very much compared to PSU banks.

Harsh Roongta answers, As far as personal loans are concerned, this is indeed true. The catch is that most public sector banks are not aggressive on unsecured loans, and will give such loans only to people working in specific companies with which the bank has a relationship.

praveen1980in asked, Hello sir, my name is in the credit card defaulter's list, but now I want to pay the outstanding by taking a personal loan. Which bank can offer me the best deal on this?

Harsh Roongta answers, It will be very difficult for you to get any personal loan, as your name is already in the defaulter's list. In fact, you may find it difficult even to raise a secured loan. Your best bet is to use relatives and friends to help you over this issue.

laxmikant asked,  I have an ancestral house and I wish to take a loan against the said property for the extension of the same house. There is no earlier loan on the said property. Please guide me on a suitable loan option.

Harsh Roongta answers, Take a home extension loan from a bank that is active in the area in which your ancestral property is situated. Please remember that all owners and or co-owners will need to be co-borrowers for the loan (this of course, assumes that the title papers for the property are in order and have been transferred in favour of the existing owners/ co-owners) . If any of the above is a problem, then go for a personal loan.

Srinivas asked, Hello I am a design engineer and I have taken around Rs 2.5 lakhs from different banks, and right now I am paying around Rs 11,500 as EMI every month. Is there any bank which can takeover these loans and get me a loan at a cheaper rate of interest?

Harsh Roongta answers, As long as your repayment track record with your existing lenders has been good, and your income is enough to justify these loans, it should be possible.

However, interest rates on personal loans have risen sharply in the recent past. It may not be in your interest to switch lenders at this juncture, especially as you will also have to pay a prepayment fee to your existing lenders.

Finwiz asked, Is it cheaper to take a secured personal loan against shares or NSC etc. from a public sector bank or co-op bank than a private bank? What are the advantages?

Harsh Roongta answers, A secured loan is always cheaper than an unsecured loan.

sameer asked, I had taken a personal loan of Rs 140,000 for a tenure of 3 years at 15.75 per cent on reducing balance. My EMI was Rs 4,900, and after 1.5 years the principal amount outstanding was Rs 81,000. I recently purchased a car for which I required Rs 143,000. I managed to get this amount using a personal loan from my credit card at 16 per cent for 4 years at an EMI of Rs 4,053. 

I also took two personal loans of Rs 81,000 for 3 years at 15 per cent at an EMI of Rs 2,828 and closed my previous personal loan and Rs 58,500 at 12 per cent for 3 years at an EMI of Rs 1,980 to close my credit card outstanding. My main concern was that my net outflow from my salary should be less. Now my total outgoings are (Rs 4,053 + Rs 2,828 + Rs 1,980). Is there any other lucrative option?

Harsh Roongta answers, All your existing loans appear to be at decent rates (though one needs to go through the calculations to check if the stated interest rates are indeed the actual interest rates -- you can use the calculator on the www.apnaloan.com website for that purpose).

Sandeep asked, Hi, Sandeep here. I have taken a car loan of Rs 4.5 lakhs. Can I get IT benefits for car loans?

Harsh Roongta answers, Not unless you use the car for the purpose of your business.

Ankur asked, I already have a home loan from SBI for a term of 15years. I wanted to take additional personal loan of Rs 1-2 lakhs. What should I do?

Harsh Roongta answers, Please scout around in the market for a good deal.

Harsh Roongta says, Thank you everybody for all the questions and the interactive conversation. Bye for now and meet you for the next chat next fortnight.

Part I: How to get a cheap personal loan

Part II: Is a personal loan the last option?

Harsh Roongta is the CEO of apnaloan.com, a site that helps people get the most competitive loans.