Moving to a new city and setting up residence can be quite an experience when you are young and amateur and just starting out in your career. In some of the big and happening cities, getting a house for rent can be expensive. House owners usually charge a heavy rental deposit of around 6-12 months which can be up to a few lakhs. Gathering this amount may be challenging for many, and this is where a rental deposit loan can be a real lifesaver. LoanTap offers tailored personal loans called rental deposit loans, which can help you sort out this issue conveniently.
What Is a Personal Loan?
A personal loan is an unsecured loan that can provide you with short-term funds without any collateral. Such loans can be availed of easily with minimum eligibility requirements and a completely digital process.
How Does a Rental Deposit Loan from LoanTap Work?
A rental deposit loan is a specially tailored loan from LoanTap which pays the house owner directly while the borrower has to pay only the interest component on a monthly basis as EMI.
At the end of the loan tenure, the house owner returns the deposit directly to LoanTap. The rental deposit loans are offered for tenures of 11, 22 or 33 months, depending on the lease terms. LoanTap offers amounts from INR 50,000 to INR 10,00,000.
What is the eligibility requirement for a rental deposit loan?
If you are an Indian citizen or resident over 21 years of age and earn a net monthly income of over INR 30,000, you have fulfilled the eligibility criteria. Now you can apply for the rental deposit loan from LoanTap easily.
What is the process for applying for a rental deposit loan?
Here is the process for applying for rental deposit loans explained in a few simple steps-
Step 1 – Download the LoanTap app on your smartphone.
Step 2– Fill out an online application providing the necessary details. You will need to specify the purpose of the loan as a rental deposit and also provide details of the homeowner, including his / her bank account.
Step 3 – You will need to upload some basic documents for the purpose of identification and address proof. This will include the following –
- PAN Card
- Aadhaar Card
- Salary slips for the last three months
- Bank statement for the last six months
- Home owner’s bank account details
Step 4 – Now, the system will take over and verify all the details submitted. After cross-checking the documents and confirming their authenticity, the loan will be approved.
Step 5 – The rental deposit loan amount will be directly credited to the homeowner’s bank account. The entire process is completed within 24-36 hours from start to finish.
Step 6 – You will need to repay only the interest component of the loan on a monthly basis.
Benefits of availing of a rental deposit loan
- Instant disbursement – Unlike traditional loans, an instant rental deposit loan from LoanTap is disbursed within 24-36 hours of the application. This is such a convenience in the case of an emergency need for funds to finalise a house on rent. It is so tricky to get the right house in the perfect neighbourhood, and a delay in depositing the amount could jeopardise the chances of getting the house as the demand is so high.
- 24/7 availability – Another convenient aspect is the round-the-clock availability of personal loans from LoanTap. Your loans are not held up due to weekends or working hours, or public holidays. This is a great benefit as emergencies don’t come with warnings.
- No physical paperwork – Unlike normal loans, where you are bogged down by reams of paperwork, a rental deposit loan from LoanTap requires no physical paperwork except a single online application form.
- Minimal documentation – There is no need to be hassled by multiple documents. You will need to upload only the mandatory documents mentioned above. This can save you a lot of time and stress.
- No collateral – Rental deposit loans, being unsecured, don’t require any assets to be pledged. This makes these loans so comfortable for those who have just started out in their professional life and cannot opt for secured loans.
- Less expensive than credit cards – Credit cards charge 2.5-3% per month on outstanding balances, while rental deposit loans are available at half the rate. It is prudent to opt for a rental deposit loan rather than swipe your credit card while renting a house.
- Only interest component as EMI – In a rental deposit loan, the borrower simply has to pay the interest component as EMI. The principal is collected as a lump sum from the homeowner at the end of the lease. This is a great benefit as the borrower’s monthly cash flow is unaffected. In fact, it is an excellent option for rental deposits as it tremendously reduces the burden on the monthly budget.
- Improves chances of getting a good house – If your rental deposit issue can be handled with ease, it will help you scout for the right house in an ideal neighbourhood that is close to your workplace and has easy access to other amenities. Getting the deposit issue out of the way will give you mental peace.
LoanTap believes that digitization can be used to create convenient funding solutions for people who face common issues in daily life. Getting a good house for rent is a tricky issue in big cities, as the rental deposit can be daunting. The rental deposit loan by LoanTap solves the issue by paying the homeowner directly and receiving the amount back at the end of the lease. This eases the burden on the borrower to a great extent as they need to focus only on the interest payments.
If you are looking to find a place to rent but are worried that you will have to shell out because of the rental deposit, download the LoanTap app today and get this issue out of the way. Life is easy with LoanTap. Get the LoanTap advantage today and keep your housing issues at bay.