Loans for Co-Living & PG Deposits in Metro Cities—A New Trend Among Millennials

Kabir is a 30-year-old IT consultant at an MNC. Relocating from one city to another for client projects is part of his job, so he’s always on the move.
For his latest project, he had to relocate to Hyderabad for three months. He explored PGs within his budget, compared amenities, and booked the best one. But instead of paying the deposit from his pocket, Kabir took a personal loan. Surprised? Don’t be!
Today, most millennials use personal loans to manage co-living and PG deposits in metro cities. But is this really the right choice? Let’s find out!
 

Why Are Millennials Turning to Personal Loans for Co-Living and PG Deposits in Metro Cities?

There are various reasons why millennials are choosing personal loans to finance co-living and PG deposits in metro cities -

Lifestyle Shift

Millennials prioritise flexibility. They switch jobs and relocate cities too often. So, instead of burning through their savings each time they move, they opt for a personal loan to cover PG deposits. This way, they get instant funds while keeping their own money untouched.

Skyrocketing Deposits

In tier 1 metro cities like Delhi and Mumbai, PG and co-living deposits can sometimes be as high as six months' rent! For young professionals, that’s a huge upfront burden. So, many turn to personal loans to bridge the gap. 

Need for Independence 

Many young professionals don’t like to rely on their family for money. So, they opt for a personal loan, especially if the amount is on the higher side. 

Rising Relocation Costs

The overall cost of relocating to a metro city, including food, rent, and transportation, is already extremely high. On top of it, PG and co-living security deposits make it worse. So, a personal loan often feels like a huge relief, especially to millennials who don’t have large savings set aside. 

Instant Access to Funds

Personal loans aren’t just collateral-free. They are also hassle-free and quick, with most lenders offering a paperless application process and same-day disbursements to applicants. So, they tend to be highly tempting for those needing immediate funds. 

Should You Get Personal Loans for Financing Co-Living and PG Deposits: Pros and Cons

Before jumping on the bandwagon, weigh these pros and cons of using a personal loan for co-living and PG deposits -
 

If you assess these pros and cons with Kabir’s situation, the loan was a smart choice. It gave him quick access to funds for the deposit, kept his savings intact, and allowed him to relocate smoothly for his project. With a steady income to handle EMIs, the benefits clearly outweighed the downsides.

Who Should Consider Personal Loans for Co-Living & PG Deposits (and Who Shouldn’t)
 

Still wondering if a personal loan is the move for your PG or co-living deposit? Here’s the lowdown -

Suitable for:

•    Young Professionals Relocating Frequently - If you move cities often for jobs, loans can prevent your savings from being locked in deposits.
•    Those with Steady Income - If you can comfortably handle EMIs without straining your budget, a personal loan can ease upfront housing costs.
•    Independent Millennials - If asking family for financial help isn’t an option, a small personal loan can provide dignity and convenience.

Not suitable for

•    Anyone with Unstable Income - If you’re a freelancer or an early-career employee, you may struggle with paying EMIs on time. This can hurt your credit score.
•    People Already Servicing Debt - If you have multiple ongoing loans, adding another one can increase your financial pressure and risk of slipping into a debt trap.
•    Those with Savings to Spare - If you can pay the deposit from your own funds, it’s better than paying interest on a refundable amount.

Millennials, Mobility, and Money Choices

Soaring metro living costs and the push for independence are driving millennials to take personal loans for co-living and PG deposits. But like any financial choice, it has pros and cons. So, evaluate your situation before jumping in.
That said, if you want quick, hassle-free personal loans, check out Hero FinCorp. We offer instant loans of up to ₹5 lakhs with a minimum monthly salary of just ₹15,000.
Apply for a personal loan with Hero FinCorp today!

Frequently Asked Questions

1. What is the difference between loans and advances?

Loans are used for financing significant expenses, like buying property or funding education. On the other hand, advances are suitable for covering short-term, immediate financial needs, like paying hospital bills or loan EMIs.

2.  Does PG require a deposit?

Yes, most PG owners ask for a security deposit of about 3-6 months' rent.

3. Will a personal loan for PG deposits affect my credit score?

Yes. Timely EMI payments can improve your score, but delays or defaults can hurt it.

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