How to Opt For a Personal Loan For Security Deposit in Mumbai?

As per Numbeo, an online collaborative database, rent in Mumbai can consume around 40% of an individual’s salary. The average rent of a 1 BHK flat in the city can cost around Rs.45,000, which decreases to about Rs.22,000 outside the same. A 3 BHK flat can come with a rent of Rs.1.15 lakh inside the city and Rs.49,000 outside it. However, rent is not the only issue that individuals face when looking for an apartment. Security deposit is among the major concerns too, that can be conveniently financed via a personal loan for a security deposit in Mumbai.

In Mumbai, landlords usually ask for a security deposit for 3 to 4 months. It can amount to a sum that not many can afford. Hence, NBFCs provide their personal loan for a security deposit in Mumbai. Also known as rental deposit loans, these credits are expressly provided to solve the financial crises of new tenants.

Personal Loan For Security Deposit & Rental deposit loans

How to opt for a personal loan for a security deposit?

You can opt for rental deposit loans from the official website of the providing NBFCs. Your name, contact number, shifting date, etc. Once applied, a representative of the lender will get in touch with you regarding the formalities.

Applying for a Rental deposit loans

You fill the rental deposit application form:-

Choose how much you want to borrow

You may be seeking financing only to pay for the security deposit and the brokerage. However, you will also require funds to furnish your apartment. Now, utilising your savings may seem a plausible option for the same, but you can instead opt for a personal loan for a security deposit in Mumbai.

These loans do not have any usage restriction. Hence, you can use them to not only pay for the security deposit but also to buy/rent furniture, appliances, etc.

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Select a suitable lender

Several NBFCs provide rental deposit loans across cities to ease the financing required when renting a house. Bajaj Finserv is one of them, which offers loans up to Rs.5 lakh. You can also opt for value-added services like a finance fitness report that shows your creditworthiness and current financial position.

Pick the right tenor | Rental deposit loans

Usually, personal loans for security deposit have a tenor ranging up to 36 months. The repayment period is ample given that the amount available is not high.

You can select a longer tenor to keep your EMIs low; however, the same will also increase your cost of the loan. On the contrary, picking a smaller tenor will have the opposite impact.

Rental deposit loans Consider the following example – 

You have opted for a loan of Rs.2 lakh at an interest rate of 13% per annum. Now, the EMIs and cost of the loan for different tenor include – 

• 12 months – EMIs = Rs. 17,863 and cost of loan = Rs.2.14 lakh.
• 36 months – EMIs = Rs.6,739 and cost of loan = Rs.2.42 lakh.

Hence, pick the tenor of your personal loan for a security deposit in Mumbai carefully as it will determine how much you save per month after paying the EMI amount.

Arrange the necessary documents for Rental deposit loans

Required to avail a rental deposit loan includes:- 

• OVDs for KYC (Aadhaar, Voter ID, Passport, Driving License, etc.).
• Bank account statements.
• Salary slips.

Additional documents if required:-

Additionally, make sure to check the fees that a lender charges against a personal loan for a security deposit in Mumbai. Some of these can include – 

• Processing fees – A one-time fee charged for processing your loan application and documents.
• Cheque bounce charges – Charged when the cheque for EMI payment gets dishonoured.
• Penal interest – Applicable when you fail to pay an EMI within the due date.
• Part-prepayment charges – Charged when you part-prepay your loan.
• Foreclosure charges – Applicable when you want to foreclose the loan before the tenor ends.

Takeover | Rental deposit loans

Make sure to consider these tips before opting for a personal loan for a security deposit or rental deposit loan. These loans are exceptionally beneficial when you move to a Tier 1 city for employment or any other reasons.