Worried about security deposit for renting a home? Instead of exhausting your savings, just apply for a rent deposit loan, which can help you pay your security deposit to the owner while renting a new home or a flat. Relocating to a new abode is very common. Especially salaried professional move from place to place when they move to a new company. They either relocate to a new city or else they stay far away from their workplace and commute for longer distances.
Security deposit is the amount that a tenant has to pay to his landlord which is usually a sum of 3-12 months rents in advance. This deposit differs from one metropolitan city to another, but the possibility of arranging such a big amount is less, even after meticulously saving. Hence, in such situations, a rent deposit loan comes to your rescue.
What is a Rent Deposit Loan?
A rent deposit loan amount ranges anywhere from a minimum of INR 1,00,000 to a maximum of INR 5,00,000. Depending on your lease/rental agreement, the loan tenure varies from 11 months to 33 months (values differ from one lender to another).
How does a rent deposit loan work?
The security deposit will be given directly to your landlord. You will pay the interest amount till the termination of the lease. Once the lease period gets completed / you vacate the house in advance, your landlord will return you the security deposit. In this case, your landlord expects you to offer a declaration regarding the complete procedure.
With a rental deposit loan, you will be offered with the flexibility to manage your expenses in a better and in an efficient way.
When can you use a rent deposit loan?
In the following cases, a rental deposit loan can be used:
When you have recently shifted to a new city or a new location in the same city, but low on savings.
Short of emergency funds to pay rents and embarrassed to borrow money from family and friends.
Who is the best lender for getting a rent deposit loan?
You can get a rent deposit loan from many lenders such as traditional banks, credit unions, NBFCs (non-banking finance companies) or other online lending institutions. But, applying for a loan from NBFC is the best solution as they swiftly approve your loan and instantly disburses your money.
There is an NBFC called Vivifi India Finance Private Limited with its loan offering product called Loan Granted. They provide exceptional loan lending services and are also registered with the Reserve Bank of India (RBI).
The best part about Loan Granted is it easy to apply for a loan with them and your loan gets approved on the same day you have applied.