Apply online for a deposit loan for moving quickly: your route to financial flexibility
26.05.2025
7
Minutes
Katrin Straub
Managing Director at nextsure
You’re about to move, but the security deposit of up to three months’ rent is tying up your capital? It doesn’t have to be. A rental deposit loan creates immediate liquidity, so you can focus on what matters most: your new home.
The topic in brief and concise terms
A deposit loan is an instalment loan that bridges financial shortfalls when moving by pre-financing the deposit amount.
The statutory amount of the rental deposit is limited to a maximum of three net cold rents (§ 551 BGB).
The entire application process for a secured loan can be completed online, often with funds paid out within 48 hours.
Understanding the Deposit Loan: How It Works and Benefits
A deposit loan is a purpose-specific instalment loan for financing the rental deposit. You receive the loan amount directly into your account and transfer it to the landlord. Repayment is made in monthly instalments over a fixed term of often 12 to 84 months.
The key advantage lies in immediate liquidity. Instead of having to raise up to 4,500 euros (with 1,500 euros net rent) all at once, you spread the burden across small instalments. So your savings for other important expenses such as a furniture loan remain untouched.
The interest rates for such a loan are usually significantly lower than for an overdraft facility. While overdraft interest rates often exceed ten per cent, deposit loans with good creditworthiness start at under five per cent. This makes the financing predictable and more cost-effective over the term. The process is also fully digitalised, enabling quick processing.
Cost analysis: realistically calculate interest and fees
The total costs of a surety loan are made up primarily of interest. The annual percentage rate is the key figure here, as it indicates all the costs of the loan on an annual basis. Offers dependent on creditworthiness can have interest rates ranging from five to over fourteen per cent.
Let’s take a practical example: with a surety amount of 2,100 euros and an annual percentage rate of six per cent over a term of 36 months, the total costs would amount to around 195 euros. The monthly instalment would be approximately 64 euros. A transparent household budget calculation helps you find the right instalment.
Pay attention to the contract details to avoid hidden costs. Reputable providers waive processing fees and allow free early repayments. A careful comparison of different offers is essential to secure the most favourable terms. This way, you can ensure that the loan becomes a help rather than a long-term burden.
Legal basis of the security deposit: Section 551 BGB in detail
The German Civil Code (BGB) clearly regulates the rights and obligations relating to the rental deposit. Under section 551(1) of the BGB, the security deposit may amount to no more than three months’ net rent. Flat-rate service charges are not taken into account in the calculation.
A higher demand in the tenancy agreement is invalid; you would only have to pay the maximum amount permitted by law. In addition, section 551(2) of the BGB gives you the right to pay the deposit in three equal monthly instalments. The first instalment is due at the start of the tenancy, not when the contract is signed.
The landlord is obliged to invest the sum of money entrusted to them separately from their own assets. This must be done in an interest-bearing account, with the interest earnings belonging to you as the tenant. This arrangement protects your money in the event of the landlord’s insolvency. A loan for renovation is to be considered separately from this.
Comparing alternatives: deposit loan versus rental deposit guarantee
Alongside a deposit loan, the rental deposit guarantee, often referred to as rental deposit insurance, is the most common alternative. In this case, the tenant does not pay a deposit; instead, an insurance company provides a guarantee to the landlord. For this, you pay an annual fee, which is usually between four and five per cent of the deposit amount.
The choice depends on your financial situation and planning. Here are the key differences:
Ownership: With the loan, you repay the borrowed amount and receive the full deposit back at the end of the tenancy. With the guarantee, you pay a fee for a service without building up capital.
Costs: A short-term loan can be cheaper than a guarantee over many years. After three years of loan term, you are debt-free, while the guarantee fees continue.
Acceptance: While a cash deposit (including one financed by a loan) must be accepted by every landlord, acceptance of a guarantee is voluntary.
Flexibility: The loan gives you the full deposit amount, which you can use for your next move after the tenancy ends.
A deposit loan is often the better choice if you plan to stay in the flat for longer than two to three years. The guarantee is more suitable for bridging short periods, for example if the old deposit has not yet been paid out.
Digital to your goal: Apply online for a guarantee loan in 4 steps
Applying for a surety loan is now a quick and straightforward process. Thanks to digital solutions, you often receive approval within 24 hours. An quick loan for unforeseen bills follows a similar principle.
The path to your financing typically involves four steps:
Loan comparison and application: Enter the desired surety amount and term into an online calculator. Then complete the application form with your personal details.
Credit check: The provider carries out an automated credit check, usually via a SCHUFA enquiry. This takes just a few seconds.
Digital identification and contract: Identify yourself conveniently from home using the video identification process. You sign the loan agreement digitally with a qualified electronic signature (eSign).
Payout: After successful verification, the money is often in your account within 48 hours.
This efficient process makes the online loan with instant approval the ideal solution when things need to move quickly.
Expert tip: You should pay attention to these criteria when selecting a provider
Not every deposit loan is the same. To find the best offer for your situation, you should pay attention to several key factors. A low interest rate is important, but it is not the only criterion for a good agreement.
Our expert tip: Check the contract terms for flexibility. A good deposit loan allows free early repayments, so you can pay back the loan more quickly if, for example, you receive the deposit from your old flat. Flexible adjustment of the instalments can also be helpful if your financial situation changes.
Also pay attention to the transparency of all costs and the provider's credibility. A look at independent customer reviews can provide useful insight here. A loan for your first flat is an important financial decision that should be made carefully. This will help ensure you are satisfied in the long term too.
Request an individual risk analysis now: have your insurance situation checked free of charge and receive specific recommendations for improvement.
More useful links
Wikipedia provides a comprehensive explanation of the term rental security deposit (deposit), its significance and various aspects.
The official service Gesetze im Internet provides the full text of Section 551 of the German Civil Code, which contains the regulations on the rental security deposit.
The Sparkasse provides information about the rental deposit from its perspective and explains various types of deposit.
Finanztip offers a detailed overview of the rental deposit, the rights and obligations of tenants and landlords, as well as useful tips on how to invest and repay it.
The Federal Statistical Office (Destatis) provides official statistics and information on migration and relocations in Germany.
Statista presents a statistic on the relocation rate in the individual federal states of Germany.
Another statistic from Statista shows the most common reasons for moving in Germany.
FAQ
What happens to the rental deposit loan after you move out?
After moving out, you will receive the deposit amount back from the landlord. You can use this money to pay off the deposit loan in one go, if it has not yet been fully repaid.
Can I also use the deposit loan for other moving costs?
Yes, if you apply for a slightly higher loan amount than the pure deposit, you can use the additional money flexibly for renovations, furniture or the removal company. It is an instalment loan for your free disposal.
What documents do I need for the online application?
As a rule, you only need a valid identity card for online identification and your most recent payslips. The process is usually paperless.
Does my landlord have to accept a rental deposit loan?
You present the landlord with a cash deposit, which he is legally required to accept. How you finance this sum is your personal matter and does not require his consent.
Are special repayments possible with the deposit loan?
Many modern lenders allow free special repayments. This enables you to repay the loan more quickly, for example if you receive a pay rise or the deposit from your old flat.
How long should the term of a deposit loan be?
Choose a term that results in a monthly payment that is convenient for you. A shorter term reduces the total cost, while a longer term lowers the monthly burden. Terms between 24 and 48 months are common.
