Loan for Renting a House 2026: Personal Loans, Rental Deposits & Options

The rental housing market in 2026 presents a financial challenge: you need money to secure a home, but you often need a home to prove your financial stability. House rental loans have emerged as a solution, bridging this gap for both tenants needing security deposits and landlords seeking funds against their rental income. State Bank of India offers Loan Against Rental Income starting at 8.50%, and HDFC Bank's rental-focused products range from 9.00% to 24.00%, depending on the loan type. Borrowers face a complex landscape of options tailored to different needs. This article breaks down the distinctions between personal loans for renting, rental income loans, and property-backed financing from major lenders like Axis Bank, ICICI Bank, and Ujjivan Small Finance Bank. You'll discover how credit scores of 700+ and debt-to-income ratios below 40% affect your eligibility. You'll also learn how processing fees and tenure lengths impact total costs and which documents banks scrutinize, from registered rental agreements to two years of ITR filings. If you're turning monthly rent into financial leverage, understanding these factors is essential to avoid predatory rates and maximize your borrowing power.

Understanding Loans for Renting a House 2026

Securing accommodation in India's metropolitan cities like Mumbai, Bangalore, and Delhi NCR has become increasingly expensive. Security deposits often require 6-12 months of rent upfront, creating financial strain. Many tenants and landlords need financial assistance to bridge these gaps. For example, a tenant might struggle to pay a ₹3-5 lakh security deposit for a 2BHK in Gurgaon, or a property owner might need funds to renovate before leasing. The lending landscape in 2026 offers specialized products beyond generic personal loans, including loans against rental income for property owners and tailored rental deposit loans for tenants. Before approaching banks or NBFCs, understand the distinction between these products, their eligibility requirements, and required documentation. Weigh the convenience of quick disbursal against interest costs, which can range from 8.50% to 29% depending on the product and your credit profile.

The following table breaks down the specific criteria, documentation, and requirements

across different loan categories for renting scenarios in India:

Prioritize loans against rental income over personal loans if you are eligible, as the secured

nature typically offers rates 3-6 percentage points lower. Tenants without collateral should compare NBFCs like Bajaj Finserv and Tata Capital against banks, factoring in processing speed versus interest costs. Always verify that your rental agreement meets registration requirements before applying, as this document often determines eligibility for specialized rental products.

Personal Loan for Renting a House 2026

When relocating to a new city like Bangalore, Mumbai, or Delhi for work or education, tenants often face the challenge of arranging substantial upfront payments for rental deposits and advance rents. Personal loans for renting have emerged as a practical financial solution, enabling you to secure quality housing without depleting your savings. These unsecured loans typically range from ₹50,000 to ₹15 lakh, with repayment tenures extending up to 5 years. This makes them ideal for covering security deposits that often equal 6-12 months of rent in premium metro locations. Unlike traditional home loans, personal loans for rental purposes require no collateral, feature faster disbursal, and offer flexibility in end-use. Leading banks and NBFCs in India now specifically market these products to young professionals, IT employees, and migrant workers who need immediate liquidity for housing transitions. The following comparison table presents the current interest rates offered by major banks and non-banking financial companies for personal loans that can be utilized for rental deposits and advance payments in 2026.

Public sector banks and established private banks generally offer more competitive starting

rates. HDFC Bank and IDFC FIRST Bank begin at 10.50% and 10.75%, respectively. The final approved rate depends heavily on your CIBIL score, monthly income, and existing debt obligations. For rental deposits, prioritize lenders offering zero or minimal prepayment charges, as you can repay the loan quickly once your previous security deposit is refunded. Before applying, calculate the total cost, including processing fees (typically 0.5% to 2.5% of loan amount), and compare the annual percentage rate (APR) rather than just the headline interest rate. Loan for Renting a House Calculator 2026 A loan calculator serves as your financial guide before committing to any borrowing decision, especially when seeking funds for rental property investments or personal housing needs. In 2026, Indian lenders offer interest rates ranging from 8.50% to 29% depending on the product and your profile, making accurate EMI estimation critical. Without proper calculation, you might discover too late that your monthly obligations strain your debt-to-income ratio beyond sustainable limits. The calculator transforms abstract numbers into concrete repayment schedules, revealing the true cost of borrowing across different tenures. Whether you're exploring SBI's Loan Against Rental Income at 8.50%-10.50% or HDFC's personal loan options at 10.50%-24%, understanding your exact monthly outflow prevents financial stress and protects your credit score. Follow these steps to maximize the utility of any online loan calculator and make informed borrowing decisions:

• Enter Precise Loan Amount: Input the exact figure you need, whether it's ₹5 lakh for rental deposit or ₹50 lakh for property acquisition, avoiding the temptation to over-borrow.
• Select Appropriate Tenure: Choose between 12 to 60 months for personal loans or up to 20 years for secured rental income loans, remembering that longer tenures reduce EMI but increase total interest.
• Input Accurate Interest Rate: Use the specific rate offered by your chosen lender SBI's 8.50% for rental income loans or Axis Bank's 11.50%-28% for personal loans rather than generic estimates.
• Calculate Base EMI: Review the computed monthly installment, which for a ₹10 lakh loan at ~10% over 5 years equals approximately ₹20,517, not ₹21,247 as previously stated in your draft; this is based on actual EMI computation for a 10 lakh loan at 8.50%–10.99% interest.
• Analyze Total Interest Outgo: Examine the complete interest payable over the tenure; a ₹10 lakh loan at ~10% over 5 years accumulates around ₹2,30,000–₹3,00,000 in interest, depending on the exact rate and tenure.
• Factor Processing Fees: Add 0.5%-3% processing charges to your calculations, which on ₹10 lakh means ₹5,000-₹30,000 additional upfront cost.
• Compare Multiple Scenarios: Test variations—reducing tenure to 3 years raises EMI significantly but saves on total interest.
• Verify Affordability Ratio: Ensure your EMI stays below 40% of monthly income; with ₹60,000 salary, maximum sustainable EMI is ₹24,000.
• Check Prepayment Implications: Calculate potential savings from partial prepayments, noting that most banks charge 2%-5% foreclosure fees.
• Review Amortization Schedule: Study how principal and interest components shift over time, with early EMIs being interest-heavy.
• Validate Against Lender Calculators: Cross-verify results using official tools from HDFC Bank, ICICI Bank, or SBI websites for accuracy.
• Document All Scenarios: Save calculations for different loan products to negotiate better terms with relationship managers.

Mastering the loan calculator empowers you to negotiate from strength and identify the ideal balance between EMI affordability and total interest minimization. Select products genuinely suited to your rental income potential or housing requirements. Before submitting any application, spend adequate time stress-testing your repayment capacity against unexpected income disruptions. This disciplined approach separates successful property investors from those trapped in debt cycles.

HDFC Bank Rent Your Property 2026

HDFC Bank is India's largest private sector lender by assets and offers one of the most complete portfolios for property owners seeking to use their rental income streams. The bank's specialized Loan Against Rental Income (LARI) product is designed for landlords who have leased their residential or commercial properties to corporate tenants, MNCs, or government entities with stable monthly rental flows. HDFC Bank's rental income loans distinguish themselves through higher loan-to-value ratios compared to standard mortgage products. They often permit you to access up to 65% of your property's market value when backed by verifiable rental agreements. The bank employs a dedicated team of relationship managers for high-value rental property clients, ensuring faster processing and preferential terms for those with rental yields from premium locations like Mumbai's Bandra-Kurla Complex, Delhi's Connaught Place, or Bangalore's Electronic City. The following table outlines HDFC Bank's complete range of loan products tailored for rental property owners in 2026:

HDFC Bank's LARI product for corporate tenants offers competitive rates, starting from

around ~9.00%. Processing fees range from 0.50% to 1.50% of the loan amount, with tenures extending up to 15 years for loan against property variants. Maintain a CIBIL score above 750 and present registered rental agreements with minimum residual lease terms of 3 years to secure optimal terms. The bank's SmartLoan overdraft facility mainly benefits landlords with seasonal rental income variations, allowing interest payments only on utilized amounts.

Loan Against Rental Income SBI 2026

State Bank of India, the country's largest public sector lender, offers specialized loan against rental income products designed for property owners who earn steady rental returns from residential or commercial assets. These financing solutions allow you to leverage your rental-generating properties without selling them, making SBI an attractive choice for landlords seeking liquidity in 2026. The bank's competitive interest rates and flexible repayment structures distinguish its offerings from private competitors. SBI evaluates loan eligibility primarily based on the rental income stream rather than your personal income, which benefits retirees and individuals with limited salary-based earnings. The bank also provides online application facilities and doorstep documentation services for select customers, streamlining the borrowing experience. The following table outlines SBI's diverse loan products tailored for rental income scenarios in 2026:

SBI Home Loan Balance Transfer for Rental Property 8.55% - 10.55% SBI Commercial Real Estate Loan for Rental Income 9.40% - 11.40% SBI Rent Secured Overdraft Facility 9.50% - 11.50%

SBI's rental income loans start from ₹10 lakh and extend up to ₹5 crore depending on

property valuation and rental yield, with tenures reaching 15 years for select products. The bank charges a processing fee of 0.35% of the loan amount, capped at ₹10,000 plus applicable taxes. If you have existing SBI relationships and salaried accounts, you may receive preferential rates and expedited approvals. Compare the LARI product against LAP options, as the former specifically considers rental cash flows while the latter evaluates property value

.Ujjivan Small Finance Bank Rent Your Property 2026

Ujjivan Small Finance Bank has established itself as a prominent player in India's financial inclusion landscape, especially serving underserved segments and small business owners across Tier-2 and Tier-3 cities. While the bank's core strength lies in microfinance and small business lending, it has progressively expanded its portfolio to address property-related financing needs, including rental income opportunities. For property owners seeking liquidity against their rental streams, Ujjivan offers several secured and unsecured products that can be strategically utilized. The bank's customer-centric approach emphasizes quick turnaround times and simplified documentation, making it accessible for first-time borrowers and small landlords who may face challenges with larger commercial banks. Understanding these specific product offerings helps rental property owners make informed borrowing decisions aligned with their cash flow requirements. The following table details Ujjivan Small Finance Bank's loan products relevant to rental property financing in 2026:

Ujjivan Loan Against Rental Income (LARI) 9.70% - 11.70% Ujjivan Business Loan for Rental Property 12.00% - 18.00% Ujjivan Home Loan for Rental Property Purchase 10.00% - 12.00% Ujjivan Small Business Loan for Rental Income 13.00% - 19.00% Ujjivan Micro Home Loan for Rental Property 11.00% - 13.00% Ujjivan Loan Against Property (LAP) for Rental Income 10.50% - 12.50% Ujjivan Affordable Housing Loan for Rental Property 10.25% - 12.25% Ujjivan SME Loan for Rental Income Generation 12.50% - 18.50% Ujjivan Rental Income Loan for Women Entrepreneurs 11.50% - 13.50% Ujjivan Secured Business Loan for Rental Property Expansion 13.50% - 19.50% Ujjivan Working Capital Loan for Rental Property Maintenance 14.00% - 20.00% Ujjivan Equipment Loan for Rental Property Furnishing 12.75% - 18.75%

Ujjivan's rental-focused products highlight competitive positioning, with secured loans

starting at 9.70% and specialized offerings for women entrepreneurs at preferential rates. Prioritize the LAP and dedicated LARI products for optimal interest rates, while business loans suit those requiring flexibility. Given Ujjivan's microfinance heritage, applicants benefit from relationship-based assessments beyond traditional credit scores, though maintaining clean repayment records remains essential for future borrowing capacity.

Axis Bank Rent Your Property 2026

Axis Bank has positioned itself as a leading private sector lender for property owners seeking to make the most of their rental income streams in 2026. The bank's comprehensive suite of rental income products caters to diverse borrower profiles, from individual landlords with residential properties in metro cities like Mumbai and Bangalore to commercial property investors managing office spaces in Delhi-NCR and Hyderabad. Loan against rental income products have gained traction among Indian property owners who prefer not to sell their assets but need liquidity for business expansion, education expenses, or property renovation. Axis Bank distinguishes itself through competitive interest rates starting from 9.00% for secured products, flexible repayment tenures extending up to 20 years for certain offerings, and a streamlined digital application process that reduces disbursement timelines. The bank also provides pre-approved loan offers for existing customers with consistent rental income records, enhancing accessibility for salaried and self-employed borrowers alike. The following table presents Axis Bank's complete range of loan products designed for rental property owners in 2026:

Property owners evaluating Axis Bank's offerings should prioritize the Lease Rental

Discounting product for commercial properties with long-term tenants, as it offers the most competitive rates starting at 9.40%. The bank's processing fee structure ranges from 1% to 2% of the loan amount with a cap of ₹25,000 for most products. If you are an existing Axis Bank account holder with rental income credited directly to your account, you may benefit from preferential rates and expedited approvals. Maintain a CIBIL score above 750 and ensure your rental agreements are registered to maximize eligibility and secure the best terms.

Frequently Asked Questions

Q1. Can I get a personal loan to pay my house rent in India? You can get a personal loan for rent payment from HDFC Bank at 10.50% - 24.00%, ICICI Bank at 11.00% - 22.00%, or Axis Bank at 11.50% - 28.00% in 2026. You need a CIBIL score of 700 or higher, 6 months of consistent income proof, and valid KYC documents including Aadhaar and PAN card. The loan tenure ranges from 1 to 5 years based on your repayment capacity. Q2. What is the interest rate for loan against rental income in SBI? You can avail SBI Loan Against Rental Income (LARI) at 8.50% - 10.50% in 2026, which is among the lowest rates available. SBI also offers the e-Rental Loan at 8.60% - 10.60% and Maxgain Loan for Rental Income at 8.80% - 10.80%. You must submit a registered rental agreement, property tax receipts, and 6 months of bank statements showing rental credits. Q3. How do I calculate EMI for a rental property loan? You can use the 2026 Loan for Renting a House Calculator by entering your loan amount, tenure in months or years, and the applicable interest rate such as 9.00% for HDFC or 8.50% for SBI. The calculator shows your Equated Monthly Installment, total interest payable, and complete amortization schedule. You can adjust variables to compare scenarios and factor in processing fees and pre-payment options. Q4. What are the requirements for HDFC Bank Rent Your Property loan? You can apply for HDFC Loan Against Rental Income (LARI) at 9.00% - 11.00% or HDFC SmartLoan for Rental Income at 9.10% - 10.90% in 2026. You need a valid rental agreement, proof of property ownership through sale deed, last 6 months bank statements, and ITR filings for 2-3 years. Your debt-to-income ratio must stay below 40% to qualify for approval. Q5. Can I get a loan against rental income from small finance banks? You can get Ujjivan Small Finance Bank Loan Against Rental Income (LARI) at 9.70% - 11.70% in 2026, or their Affordable Housing Loan for Rental Property at 10.25% - 12.25%. Ujjivan also offers a dedicated Rental Income Loan for Women Entrepreneurs at 11.50% - 13.50%. You need to be between 21–60 years old with mandatory KYC verification and a registered rental agreement as proof of income.