The nature of work has become such today that at some point of time or other, many working professionals have to relocate to a new city. Whether it is because of an ongoing assignment at the current workplace or for a new job opportunity, relocation has become far more common today than earlier days. However, the excitement of moving to a new place corresponds with the anxiety of going through the harrowing process of seeking rented accommodations and arranging finances to complete the shifting process.
Take Bangalore, for instance. “The city has become an indispensable tech hub, but relocating to Bangalore is not so easy. Bangalore, like Mumbai, is known to have a high-rental deposit requirement, as much as 10 to 12 months’ rent in advance. Given exorbitant monthly rentals, rentals deposits can leave the household budget of a salaried professional in utter disarray. The concerned companies cover shifting charges and arranges for accommodation for initial days, but rental deposits go from the employees’ pocket,” says Satyam Kumar, Co-Founder and CEO, LoanTap.in.
Ranjit Punja, CEO & Co-Founder, Creditmantri.com, says that this is the season when freshly-graduated students across the country would be getting ready to join workplaces and a good number of them would be moving to different cities and towns. While relocating to different parts of the country is an exciting way to start a career, it does come with its share of trials and tribulations.
“For starters, a person new to the city would find it difficult to gauge future spends in a new place. Budgeting beforehand the spends, including the cost of moving, advance on the house rent would be the first thing to do. These spends could put a strain on salaried professionals as the funds would be required within a short period of time. Planning for a personal loan or any other such loan well in advance could be the solution to avoid shifting woes and unnecessary delays,” he says.
This is precisely where cutting-edge loan products such as rental deposit loans, salary overdraft or even EMI-free loans are making a substantial difference. Rental deposit loans usually range from Rs 1 to Rs 5 lakh and the loan tenure can be 11 to 33 months, depending on the tenure of lease rental agreement.
What is interesting is the fact that in case of such loans, borrowers have to pay only interest till the lease termination, whereupon the landlord returns the principal amount. “This principal equals rental deposit for which this particular loan was taken. This is return of security (rentals) deposit after completion or termination of lease. There is no provision of repayment by second person as tenant (borrower) pays the interest during the tenure of loan,” explains Kumar.
Apart from flexibility and better expense management, one of the advantages of such loans is convenience. All of these loans are disbursed to an applicant within 24-48 hours of the initial online loan application.
“The advent of online loan approval platforms wherein you can cherry-pick a loan offering as per your current requirement adds to financial stability. One does not need to dent current savings or compromise on monthly expenditures or borrow from someone. Being aware, following certain financial discipline and choosing an apt customized loan option enables one to relocate without much financial burden,” says Kumar.