If you want to rent an apartment or a house, you will have to pay a lot of costs for the move and maybe also a new home furnishings. Therefore, it can be interesting to think about a rental deposit loan. The amount of the rent deposit is often two to three times the net rent, so that it is often an amount that is less than 1,000 USD.
However, even with this amount, it should be remembered that financing with overdraft facility would be too expensive. Therefore, there are other credit options that are precisely tailored to the required amount and the term of the rental deposit:
The bank or savings bank guarantee credit
This loan for rent deposit combines easy handling for both the tenant and the landlord with a risk reduction for both sides. The principle here is: Real money only flows when the rent deposit is actually requested due to damage caused by the tenant. The construction principle of the guarantee loan: the bank guarantees the tenant up to the amount specified on the guarantee certificate and then pays the guarantee at the lessor’s request.
This shifts the risk from the landlord to the bank. The bank only charges a provision fee for the provision of this guarantee. This guarantee is also easy for the landlord to settle, because he does not have to go to the bank and, for example, sign the opening of a rent deposit account.
The loan for rent deposit in the form of a guarantee loan is not only available from traditional banks and savings banks. The home and landowners association has been promoting this option for about two years as part of its own deposit fund.
Interim financing through the overdraft facility
Another, more expensive option is the interim financing through an overdraft facility. In this case, the tenant would create a rental deposit account together with the landlord and, according to the contractual agreement and on time, replenish it up to two to three times the monthly rent.
The bank’s overdraft facility would serve as a source of money. This would then be repaid by the borrower regardless of the rental deposit account. The overdraft interest would be somewhat mitigated by the interest on the rental deposit account.