How to Get Personal Loan For Rental Deposit?
A personal loan for rental deposit can easily be availed online as there are many renowned lenders that offer the same. In most of the cases only salaried professionals are eligible to avail with a maximum loan amount of up to Rs.5 lakh. Lenders do check the eligibility of the borrowers by taking into consideration monthly income of Rs.35,000 and a good cibil score of above 750. With minimal KYC documents, speedy approval and fastest disbursal, an instant personal loan for rental deposit can easily be availed.
What is Rental Deposit Loan?
A rental deposit loan is a type of loan which is borrowed from a lender to pay off the security advance of a rented accommodation. In case you are looking for a rented accommodation, there is a security deposit that you need to give to the landlord which is equivalent to six months to one year’s rent. Thus, it is difficult for a person to afford such an amount suddenly hence comes rental deposit loans. Typically, in rental deposit the sum gets blocked for a specific time-period, which is known as a security deposit.
However, a personal loan also comes handy to fulfill the needs and can easily be availed to pay off rental deposit. Talking about loan amount, it varies from Rs.1 lakh to Rs.5 lakh at an interest rate of 1.5% to 3% with a tenure that would differ as per the rent agreement such as 11,22 and 33 months. However, with many Fintech companies, it would be easy to avail a rental deposit personal loan.
Eligibility Criteria for Rental Deposit Loan
However, eligibility criteria varies from lender to lender. But for your reference below are the generic details.
- The minimum monthly income of an applicant should be Rs.35,000 or Rs.40,000.
- An individual should be a working professional in a limited/private limited company OR in a government company.
- An applicant should also have a good cibil score of above 750.
Documents Required for Rental Deposit Loan
- Identify proof
- Employment proof
- Three-month salary slips
- Mail confirmation from the official mail id
- Six-month bank statement
- Rental agreement
How to Apply for Rental Deposit Personal Loan Online
An individual simply needs to send a loan application online. The lender will evaluate the credit profile of the applicant by checking the personal loan eligibility. The next step is document submission which is followed by an instant approval and disbursal of personal loan for rental deposit.
To reap the maximum benefits, an applicant needs to meet the required eligibility criteria. Yes, lenders do check the eligibility of an applicant before approving the loan. Reason being, a personal loan is an unsecured loan thus the profile of an applicant should be reliable or trustworthy enough to lend.
How Does Rental Deposit Work?
Rental Deposit for Tenants:
Shifting to a new house is difficult and sudden expenses related to the same could take a toll on your budget. Thus, availing a personal loan for rental deposit is advisable to meet your expenses. With a maximum loan amount of upto Rs.5 lakh, your expenses can easily be covered.
Rental Deposit for Landlords:
Landlords can also apply for a rental deposit loan to renovate their property. Yes, as renovated helps you earn more and you can demand extra funds to recover your cost. After all, a well-furnished property is always desirable to prospective tenants.
Let’s just see which one will turn out to be beneficial for you.
Rental Yield for Furnished vs Unfurnished House
Below is a table showing comparison between furnished and unfurnished house.
|Parameters||Property Value (in Rs.)||Monthly Rent (in Rs.)||Rent Per Annum (in Rs.)||Rental Yield||Total Rent for 5 Years (in Rs.)|
|Rental yield from unfurnished house||9,000,000||27,000||3,24,000||3.6%||16,20,000|
|Rental yield from furnished house||9,000,000||32,000||3,84,000||4.3%||19,20,000|
|Financial gain from renting out a furnished house||3,00,000|
Benefits of Rental Deposit Loan
High Value Loan: With a maximum loan amount of up to Rs.5 lakh all your initial expenses such as security deposit, advance rent, brokerage, relocation expenses, and furnishing expenses are easily covered.
Speedy Approval & Disbursal: Expect a speedy approval and get your loan disbursed in the least time frame. With instant disbursal all your financial needs can quickly be met.
Minimum Documentation: Submit only limited KYC documents and you are done. Minimal documentation leads to a hassle-free loan process.
Flexible Repayment Tenures:With flexible repayment tenures of up to 3 years, you can easily repay your loan without feeling the burden.
If you want to avail Personal loan for rental deposit, there are certain charges that you need to bear. Yes, an applicant needs to pay a processing fee in the range of 2%-5% of the loan amount. However, a borrower can also preclose his loan after six months. And, if the loan is closed within six months, a nominal foreclosure charge is levied. Not only this, a borrower can also choose to make higher repayments after six months.
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