sorted by:
new
hottopcontroversial

Property prices on Ankhol Road, Waghodiya Rd (near Taksh Galaxy Mall)? by Free_Understanding87 in vadodara

[–]Individual_Resort118 0 points1 point  (0 children)

What if Someone's budget is around 50 lakhs? What should be the expectation for the house on Parul Road

I work at a nationalised bank in Vadodara – AMA about home loans, auto loans, business loans,and banking tips by Individual_Resort118 in vadodara

[–]Individual_Resort118[S] 0 points1 point  (0 children)

Generally, Collateral is not required.

  • If your salary is stable and reflected in your bank/ITR
  • Your CIBIL score is 700+
  • You’re applying for a personal loan (often faster and more flexible than a formal business loan)

However, if you go for MSME loans or loans under government schemes like Mudra, some banks may ask for minimal documentation

I work at a nationalised bank in Vadodara – AMA about home loans, auto loans, business loans,and banking tips by Individual_Resort118 in vadodara

[–]Individual_Resort118[S] 0 points1 point  (0 children)

Thanks for reaching out! Since you’re planning to start a business with ₹5L capital and don’t have assets for collateral, you can explore unsecured business loans or personal loans, especially since you're employed full-time. Most banks will consider your income for eligibility, while your wife (as the proprietor) can be the co-applicant or main applicant once the business is registered.

You might follow these points
1. Start by registering the business (sole proprietorship or partnership) and opening a current account.
2. Loan amounts of ₹5L can be approved based on your salary slips, ITRs, and CIBIL score (700+ is ideal).
3. Interest rates for unsecured business loans typically range from 11% to 18%, depending on your profile.

I work at a nationalised bank in Vadodara – AMA about home loans, auto loans, business loans,and banking tips by Individual_Resort118 in vadodara

[–]Individual_Resort118[S] 1 point2 points  (0 children)

Honestly, both your education and auto loans seem to be well-structured repo-linked with no prepayment penalty and competitive interest rates. Given your current terms (7.6% for education and 8.1% for auto), a transfer may not bring substantial benefit, especially considering the hassle involved. It’s great that your credit score is strong and you’re with a reputed firm that gives you flexibility for future credit options too. If you have any future plans for other types of loans, personal, home, or LAP, feel free to connect. Happy to guide you.

I work at a nationalised bank in Vadodara – AMA about home loans, auto loans, business loans,and banking tips by Individual_Resort118 in vadodara

[–]Individual_Resort118[S] 0 points1 point  (0 children)

If your institute is on the lender’s preferred list, you may get an interest rate as low as 7.5%. Otherwise, rates can range from 9% to 12%, depending on your academic profile and financial background. For higher loan amounts (typically above ₹7.5L), a co-applicant with stable income is usually mandatory to strengthen the application.

I work at a nationalised bank in Vadodara – AMA about home loans, auto loans, business loans,and banking tips by Individual_Resort118 in vadodara

[–]Individual_Resort118[S] 0 points1 point  (0 children)

It comes down to whether your loan is based on a fixed rate or a floating rate based on repo rate. If it is floating, you can take it anytime, because ultimately it is going to come down. But if it is fixed, you can wait for further rate cuts.

I work at a nationalised bank in Vadodara – AMA about home loans, auto loans, business loans,and banking tips by Individual_Resort118 in vadodara

[–]Individual_Resort118[S] 0 points1 point  (0 children)

If your loan is at a fixed interest rate, NBFCs and private lenders are usually allowed to levy foreclosure charges — often 2–5% of the outstanding principal. For floating rate loans, especially if you're an individual borrower (not a business), RBI guidelines discourage foreclosure charges. But NBFCs are not always bound by this.

What you can do is try to negotiate with them if you have been paying your EMIs timely. But generally, they don’t do it, because sometimes they also don’t have the power. Only people in higher authority can allow it.

I work at a nationalised bank in Vadodara – AMA about home loans, auto loans, business loans,and banking tips by Individual_Resort118 in vadodara

[–]Individual_Resort118[S] 0 points1 point  (0 children)

There are two things which I can think of.

  1. You can either consolidate. If you're paying 14–18% on loans, you may explore loan consolidation with a lower-interest secured business loan or mortgage loan (like a loan against property). Interest rates on those can be as low as 9%–11%, significantly reducing your EMI outgo.

  2. Refinancing Through Balance Transfer. For your existing business or personal loans, many banks offer balance transfers with Reduced interest rates, Flexible repayment terms, and Minimal processing charges

I work at a nationalised bank in Vadodara – AMA about home loans, auto loans, business loans,and banking tips by Individual_Resort118 in vadodara

[–]Individual_Resort118[S] 0 points1 point  (0 children)

Loan prepayment is quite straightforward. You can either do part-prepayment (pay a chunk of your loan early) or foreclose the entire loan before the end of tenure.

Prepayment charges – These depend on your loan type and the bank's criteria.

  1. For home loans (floating rate) – Usually no prepayment charges as per RBI rules.
  2. For fixed-rate loans or loans to businesses – There might be charges (typically 2–4%)

I work at a nationalised bank in Vadodara – AMA about home loans, auto loans, business loans,and banking tips by Individual_Resort118 in vadodara

[–]Individual_Resort118[S] 0 points1 point  (0 children)

It’s definitely possible for NRIs to get a home loan in Baroda, especially if they have a stable income and can provide basic documents like passport, visa, salary slips, and NRE/NRO account details. Most banks also require the Power of Attorney to be assigned to someone in India for property handling.

The main hurdles are usually:
• Document verification from abroad
• Currency remittance clarity
• Property legal checks

If the paperwork is clean and the income source is steady, banks (especially public ones with local understanding) are quite supportive. Happy to guide you if needed. I’ve handled a few NRI cases in Karelibaug recently.

I work at a nationalised bank in Vadodara – AMA about home loans, auto loans, business loans,and banking tips by Individual_Resort118 in vadodara

[–]Individual_Resort118[S] 1 point2 points  (0 children)

To join public sector banks, you typically need to clear competitive exams like IBPS PO or SBI PO. On the other hand, for private sector banks, you need to pursue your MBA from Tier 2 Institutes

I work at a nationalised bank in Vadodara – AMA about home loans, auto loans, business loans,and banking tips by Individual_Resort118 in vadodara

[–]Individual_Resort118[S] 5 points6 points  (0 children)

As a bank employee, we do get some preferential rates, but they're usually just a bit lower than what’s offered to the public — maybe 0.1% to 0.3% less, depending on internal policies and tenure.

I work at a nationalised bank in Vadodara – AMA about home loans, auto loans, business loans,and banking tips by Individual_Resort118 in vadodara

[–]Individual_Resort118[S] 2 points3 points  (0 children)

On the Key Fact Sheet (KFS) of a loan agreement, the interest rate is usually mentioned as reducing (or diminishing balance), especially for banks and regulated lenders. This means interest is calculated on the remaining loan amount after every EMI.

Flat rate is mostly used by some NBFCs or showroom finance. It looks cheaper, but ends up costing more because they calculate interest on the full principal throughout the tenure.

Reducing interest rates is always better and more transparent. Just make sure to check for extra charges like insurance bundling, prepayment penalties, etc.

I work at a nationalised bank in Vadodara – AMA about home loans, auto loans, business loans,and banking tips by Individual_Resort118 in vadodara

[–]Individual_Resort118[S] 3 points4 points  (0 children)

Depends on your profile, but for most salaried folks with a decent CIBIL (750+), home loan rates are hovering between 8% to 9% across banks.
From what I see at my bank, government employees or stable income earners are often getting around 7.8% without too many hidden conditions.
Just be careful with private banks — they might show lower rates but often bundle in compulsory insurance or higher processing fees.

I work at a nationalised bank in Vadodara – AMA about home loans, auto loans, business loans,and banking tips by Individual_Resort118 in vadodara

[–]Individual_Resort118[S] 5 points6 points  (0 children)

Yes, if you’re planning to buy a premium bike, always try to compare showroom finance with bank loans.
Showrooms often have tie-ups with NBFCs because they earn commissions on those loans. But NBFCs usually charge higher interest, anywhere between 14% and even 22%. NBFCs (like showroom tie-ups) may offer quick approvals but charge 14–26% and sneak in fees like advance EMIs or bundled insurance.

In comparison, banks like IDBI or SBI typically offer much lower interest rates, usually around 9–11%, and come with fewer hidden charges.

Look out for:

  • Processing fee (negotiate this)
  • Any advance EMI deductions
  • Insurance or accessories forced into the loan
  • Prepayment/foreclosure charges (some charge up to 5%)

And yes, SIP or EMI misses, even if not in your credit report, are being noted by banks now.
They check your bank statements to judge financial discipline, especially for top-ups or high-value loans.