These days in search of better career opportunities, working professionals are moving to bigger metro cities from Tier-2 cities. With this, originates the need of a rental home wherein they can shift easily. However, there are two types of tenants; one who look for a home nearby their office space and another who look for a home at a far place in order to save rent as well as high-security deposits.
A security deposit is an amount which a tenant has to pay before entering into the rented apartment or flat. In some cities like Delhi, a landlord asks to deposit 2-3 month rent amount in prior but in cities like Bengaluru and Mumbai it ranges from 11-22 months. Sometimes due to such high rental deposit tenants refrain themselves from opting for a good and well-developed home. Here comes, the role of rental deposit loan which helps in renting your dream house in one go.
What is Rental Deposit Loan?
A rental deposit loan is a type of loan that helps in solving financial worry for the security deposit of rented properties. It is a new term in the loan world and hence it is not offered by banks. On the other hand, many online lending sites offer such loans easily as the amount is much less and process is much faster. As the security deposit of the rented properties varies from city to city, so as the loan amount.
The online lenders provide credit to the tenants very quickly for the tenure of 11, 22 and 33 months tenure. The loan amount ranges from Rs 1 lakh to Rs 5 lakhs and the interest rate is as low as 1.5%. The loan borrower has to pay the interest till the time they are taking the loan or as per the lease agreement. Once the agreement is over, the landlord payback the deposit amount to the lender or the tenant. For this, a declaration is also taken by the landlord.
How Rental Deposit Loan help?
If you a relocating to a city like Mumbai or Bangalore, where the quantum of the security deposit is too high, a rental deposit is of much help. It helps in saving your extra money as well as finalising a rental property of your choice. As the interest rate is low, one can also pay the EMIs easily without pressurizing on their financial planning. You can also manage your expense easily which may quite high due to shifting.
How to apply for Rental Deposit Loan?
The application procedure for Rental Deposit Loan is not as hectic like other loan application. These days many online lending portals are available in the market which provides hassle-free Rental Deposit Loan.
All you have to do is to submit all the relevant documents online which further get verified by the loan provider company. In the next 24 hours, the loan amount gets disbursed into the borrower account, if all the provided information matches to the company’s requirement.