Relocating to a new city often includes renting a house, which includes paying a security deposit. This deposit can be up to 2-3 months’ rent in metro cities like Mumbai, Bengaluru, or Pune. It comes along with brokerage fees, advance rent, moving costs, new furniture, and setup charges.
A personal loan for rent deposit, in this situation, not only allows you to cover the cost of the rental deposit but also makes relocation easier. It also ensures that you don’t deplete all your savings or hinder your working capital as well. In this blog, we will explore how a personal loan for a rental deposit makes relocation seamless.
A rental deposit loan can be a viable financial option in the following circumstances:
Rental deposit loans normally range from ā¹50,000 to some lakhs, varying depending on the location and kind of property. In metropolitan regions, deposit requirements are higher compared to TIER 2 and TIER 3 cities.
Besides the rent deposit, you can also cover the cost of furniture and appliances by applying for a higher loan amount. It allows you to meet all your relocation needs without draining your savings or emergency funds.
Here are the key features of DMI Finance personal loans that can be useful to them for a rental deposit:
Ā TheĀ eligibility criteria for DMI Finance personal loansĀ are given below.
Here is the list of documents for a personal loan application:
| Type | Documents |
| Identity Proof | Aadhaar, PAN, Passport, Voter ID (Anyone) |
| Address Proof | Aadhaar, Utility Bill, Rent Agreement (Anyone) |
| Income Proof | Salary Slips / Bank Statements / ITR (Anyone) |
Hereās theĀ step-by-step application process:
Your application will be submitted for review, and youāll be notified of approval shortly.
A relocation loan, sometimes known as a moving expenses loan, is intended to reduce the financial strain associated with relocating to a new residence. You divide the large sum into manageable monthly instalments rather than paying it all at once. This allows you to settle into your new city without depleting your resources or incurring unofficial debt. Here are the main ways it is beneficial:
1. Provides Access to Housing in Cities with High Deposits
The Model Tenancy Act, 2021, recommends capping security deposits at 2 months’ rent for residential properties. However, landlords demand six to ten months’ rent upfront in cities such as Bengaluru and Chennai. Thus, a rental deposit loan instantly bridges this difference, ensuring you won’t have to compromise on the house’s location or quality.
2. Keeps You from Losing Your Investments or Savings
Deposits are refundable; however, they stay blocked until you leave the residence. It is unwise to break fixed deposits or sell mutual funds for a short-term need. You can cover your current housing demands and preserve your long-term investments with a rental deposit loan.
3. Cover More than Just the Deposit
Deposits aren’t the only aspect of relocating. You could also require the money for:
4. Facilitates Easy Cash Flow Management
Instead of paying the ā¹2 lakh all at once, you can spread it out over 24 to 36 months. This means that you will have more control over your monthly expenses and more room to manage other obligations, like groceries, school fees, or EMIs, without experiencing an unanticipated drop in your bank balance.
One of the first things you should consider when taking out a personal loan for a move or a rent deposit is the loan tenure, or the length of time you plan to pay it back. By selecting the appropriate tenor, you may manage your repayments and avoid feeling overloaded when relocating to a new place. You can choose anywhere between 12 months to 48 months.
As a working professional, you are always moving from one city to another and from one apartment to another. With many expenses already lined up, it can be difficult to have enough funds to cover rental deposits. But with a personal loan for a rent deposit, it also gets easy to relocate. Apply for a personal loan for rent deposits with DMI Finance now and get up to ā¹5 lakh, and make relocation stress-free.
1. Does the landlord receive a direct payout of the rental deposit loan?
No. A personal loan for relocation and rental deposit will be disbursed into your bank account. You must then withdraw that money and make a cash payment or an online payment via UPI or net banking.
2. What documents are required for a personal loan for relocation?
You must provide a few basic documents like identity proof (Aadhaar Card, PAN), address proof (Aadhaar), and income proof (salary slips or bank statement).
3. Can I top up my personal loan later if my deposit increases?
Yes. You can apply for a top-up personal loan; however, you must meet the lender’s eligibility criteria.
4. What happens if my rental deposit is returned before the loan’s expiration date?
Your personal loan won’t be affected by it directly. However, you can use the funds to partially or completely prepay the loan. This reduces the amount of interest and EMIs you still owe.
5. Can I still get a relocation loan if I’m relocating inside the same city?
Yes. You can use a personal loan to pay for new deposits, brokerage fees, and moving expenses, even if you’re only moving within the same city.
6. Does the moving expenses loan cover related expenses like furniture and appliances?
No. A personal loan for a rental deposit usually doesn’t cover the furniture and appliances, but you can apply for a higher loan amount to cover extra expenses.
7. Is there a minimum age requirement to apply for a loan with a rental deposit?
DMI Finance offers personal loans to individuals above 23 years.
8. If I change employment, how will moving impact my EMI payments?
Changing jobs or towns does not affect your loan as long as you continue to make your EMI payments on schedule.
9. What happens if the deposit is returned by my landlord in part, or worse, late?
This doesn’t affect your personal loan repayment directly. If you receive the money before the tenure ends, you can use it to prepay the loan. If you receive late and have to pay for another rental deposit, you can apply for another personal loan, provided you have settled the existing one.
