If you move, you inevitably incur high costs for the car, new furniture, transport assistants, cleaning staff and usually also for the rent deposit for the new apartment or house. This is usually the biggest cost driver and cannot be paid for without outside help. If the creditworthiness is correct, a loan for rent deposit can be taken in different ways.
The loan for rent deposit and the probable loan amount
The legislator has made very few stipulations about the maximum amount of money that a landlord may demand from a new tenant as a deposit for the living space provided. The limit is three warm rents. How close the landlord gets to this upper bar is entirely up to him. In general, it is therefore not possible to say how much security a tenant has to pay and the size of the loan for a security deposit. On average, however, the total is two to three basic rents and thus fluctuates between 500 and 2000 USD depending on the apartment, which is not even considered a small loan.
The loan for rent deposit from the landlord
For this reason, some banks find it difficult to issue such a loan. Another way is more promising anyway: Commercial landlords are required to offer their tenants a regulation about payment in installments for the deposit. This means that the tenant can gradually pay off the deposit. The only obstacle that could stand in the way is the down payment, which is almost always required. If you have the chance to pay the deposit directly, you should definitely take it because there is no interest charge. If you have problems financing the deposit, it is therefore advisable to ask relatives or friends for help here.
The loan for rent deposit from a bank
Of course, there can always be situations in which one is dependent on getting the money from a bank. There are currently two variants of how to achieve this goal. The first option is to simply take out a small loan. The deposit even serves as partial security. The transfer can be used to pay other moving costs or can be paid off directly as a special repayment.
If you do not want this, the bank will usually offer to set up an overdraft facility or to increase the existing overdraft facility by the amount of the deposit. The advantages of this way are that you have the money immediately and the repayment is up to you. But there is also a clear disadvantage: the interest on a overdraft facility is very high and reaches double-digit percentages. You have to pay dearly for this type of loan for rent deposit.