Every tenant who wants to move into a new apartment has to pay the landlord a deposit of around two to three months’ rent. This is the neat cold rent without additional costs. The landlord is basically obliged to deposit the deposit separately from his remaining assets at a bank or savings bank in a separate account. The investment must always be made at the interest rate that is usual for savings deposits with three months’ notice.
If the tenant moves out of his old apartment, the tenant is also entitled to the repayment of the deposit deposited there, including the interest earned. However, this can take up to six months. To bridge the time between the payment of the new cation and the repayment of the old deposit, a loan for deposit is often required. There are various possibilities.
Installment and overdraft facilities
A loan for a deposit can be a normal installment loan with a German bank or savings bank. This is usually freely available to the customer, which means in concrete individual cases that it can also be used to pay the deposit to the new landlord. An installment loan can be applied for online as well as in a bank branch. The basic prerequisites for this are usually perfect Credit Bureau information and employment as an employee.
If you want to use an installment loan as a loan for the deposit, you should make sure that there are also special repayment options for this loan. After the old rental deposit has been repaid, a substantial part of the installment loan can be repaid. Another, albeit often much more expensive, option is to use the overdraft facility as a loan for a deposit. The overdraft facility has the great advantage that it can be repaid flexibly at any time.
As an alternative to an installment or overdraft facility, a rent guarantee from a bank or savings bank can also be used as a loan for a deposit. The landlord receives a certificate of guarantee from the bank, which then serves as security. The bank pays the deposit at the landlord’s request. With a rent guarantee, the tenant only has to pay a fraction of the deposit to his bank as an annual premium.