Personal Loan for Rental Deposit & Rent

In the last six years, rent in India has gone up by 64%. Individuals and families more commonly prefer renting homes closer to their workplaces. When you rent an apartment or any property, the landlord will require you to pay a security deposit, and a lease agreement will be drawn. At the end of the lease, the landlord will pay back this security deposit after deducting fees and charges for any mismanagement of the property. 

This security deposit can amount from a few thousand to lakhs as the landlord sometimes may charge an advance rental of 6-12 months.  To cover these rent and deposit costs, you can take a personal loan for a rental deposit. Keep reading to learn about personal loans for renters and their benefits.

Consider, for instance, if you want to rent an apartment for ₹30,000 per month. If the landlord demands advance rental for 6 months, this comes to ₹1.8 Lakh, which must be paid before you can move in. Typically, people use their savings to pay this security deposit. Still, those who are moving to a new location or just starting their career may not have sufficient savings to cover this advance rent. 

There are a few options for you to fund this security deposit if you don't have the savings. You can borrow from friends or family, or you can get a personal loan for a rental deposit. 

Depending on your eligibility, you may qualify for a personal loan to meet the rental deposit needs. In the above example, you may take a personal loan for ₹2 Lakhs or more to cover the security deposit, moving costs, brokerage and other relocation expenses. The amount you get through a personal loan does not have usage restrictions, and you can use it for multiple purposes based on your needs.

As per the above example, if you take a personal loan of ₹1.8 Lakh, you can get the entire amount disbursed to your account after loan approval. Then, you start paying monthly EMIs for the loan tenure to pay off the loan. 

Some of the benefits of taking a personal loan for rent and rental deposit are:

• Protects your savings instead of locking it in a security deposit. 

• Gives access to a higher loan amount credited to your bank account. 

• Helps with various relocation and moving expenses that are associated with moving to a new home.

• Provides immediate financial assistance, as many loan providers offer personal loans within 24 to 48 hours. 

• Online processing is fast and requires only minimal documents.

• No need to pledge any assets or collateral.

On Bajaj Markets, you can find lenders that offer personal loans for renting an apartment. Listed below are the lenders and their loan details- 

Note: The tenure, loan amount, interest rates, and additional charges will vary based on the lender’s specific policies. You must check with the individual lender to know your loan terms.

The loans for renters generally have minimal eligibility criteria, such as:

• Stable job or steady income

• Age must be 21 years or above

• Good credit history

Documentation requirements are also minimal as these are processed online. The basic documents you may have to submit are:

• PAN card

• Salary slips for the last 3 months

• Bank statement of your salary account for the last 3-6 months

• Address proof (Aadhaar card, PAN card, etc.)

In a few simple steps, you can apply for a rental deposit loan on Bajaj Markets:

1. Click on ‘Check Offers’ on the portal. 

2. Enter your details, such as name, contact number, and pincode to get the OTP.

3. Enter the OTP to continue. 

4. In the loan application form, enter the required loan amount, preferred payment tenure, etc. 

5. View the loan options and submit the application. 

It may take up to 24-48 hours (based on the lender) to process the loan application. A representative may contact you to assist with getting your personal loan. Once the loan is approved, the amount will be disbursed to the specified bank account.