With the cost of real estate in India steadily on the rise, becoming a homeowner is challenging. In fact, renting property costs around 30% of what buying a home would cost in cities like Mumbai, Pune and Hyderabad. This is perhaps why 30% of Indians live on rent in tier 1 and tier 2 cities. Additionally, the availability of a rental deposit loan simplifies renting a home, as it takes care of the many costs associated with relocating from one rental home to another.
One of the major spends you need to account for as a tenant is the security deposit. This is especially true in cities like Bangalore, where you can expect to pay around 8 month’s rent as deposit. For landlords, on the other hand, furnishing an apartment to make it more attractive to tenants can easily cost lakhs, depending on the work needed. As is evident, a financing option such as a rental deposit loan can greatly aid your efforts whether you’re a tenant or a landlord.
However, before you borrow a rental deposit loan, you should you look into all its aspects. Here are the 4 points to keep in mind.
Know all the expenses that the sanction caters to
When it comes to renting a home, there is a whole suite of expenses you have to address. These include the cost of relocation, paying the security deposit, paying for the rental agreement registration, advance rent and brokerage. Similarly, as a landlord, to make your home more tenant-friendly you have to pay for renovations in addition to paying the rent agreement registration cost and brokerage fees.
Keep in mind that it is common for brokers to charge both the tenant and landlord a hefty fee, usually 1 month’s rent. With a Bajaj Finserv Rental Deposit Loan, you get up to Rs.5 lakh in Mumbai and up to Rs.3 lakh in other cities to meet all such expenses, whether you’re offering an apartment on rent or looking to move into one on rent. This sizeable amount helps you handle a range of expenses comfortably and minimises the impact they have on your personal finances.
Inquire about the available loan repayment tenor
A key factor to take note of when borrowing a rental deposit loan is the tenor for repayment. An instrument with a flexible tenor allows you to tailor repayment based on your financial capabilities and ensures that the cost of your loan remains within your budget.
With a flexible repayment tenor, you can choose a repayment window depending on the city you’re living in. For instance, the cost of utilities per month for an 85m2 space in Bangalore and Mumbai is Rs.1,842 and Rs.3,663 respectively, as per data from Numbeo. As a result, you’ll find it easier to pay higher EMIs in Bangalore as your budget has room for it. Since Bajaj Finserv offers a flexible tenor of up to 36 months, you can determine a term that you’re most comfortable with.
Find out about the loan disbursal policy
Knowing the loan disbursal policy that a lender has in place can be the deciding factor when borrowing a rental deposit loan. This is because in many instances, the ideal rental property is available on a first-come-first-serve basis, and having the required funds to make the rent advance payment and secure your spot is essential. For instance, in Mumbai, the city with the 2nd highest traffic congestion in India, you surely don’t want to lose out on a home that meets all your requirements and is close to your place of work because you’re waiting for funds to reach you.
With a Bajaj Finserv Rental Deposit Loan, you have no reason to worry. The entire sanction is disbursed into your account with 24 hours of approval so that you don’t miss out on a great deal.
Look for value-added features
Additional features like Bajaj Finserv’s Flexi Loan facility or doorstep service add immense value to your borrowing experience. With the doorstep service, you can enjoy drafting and registering of rent agreement conveniently, without doing any of the legwork yourself, right from your home. With the Flexi Loan facility, you can borrow from your sanction as per your needs and pay interest only on the amount you withdraw. You can also make a part-prepayment at no extra charge. What’s more, you can also avail the My Home cover by Bajaj Allianz for greater security.
Keep these factors in mind to ensure the best possible experience when you take a rental deposit loan. To enjoy instant approval and see a deal that customised for you, check your pre-approved offer online by sharing basic details today.