Security Deposit EMI: Is It Worth It in 2026?

Deposit loan ads scream “0 % interest”. We read the fine print – processing fee, GST, insurance – and found the real cost.

Loan Details

Deposit: ₹60 000 Tenure: 6 months Processing fee: 2 % + GST = ₹1 416 EMI: ₹10 000/month APR: 9.4 % (after fee amortisation)

Pros

• Keep cash for emergencies
• Build credit score if paid on time
• Shift cities without selling mutual funds

Cons

• 9 % not 0 % – cheaper than credit card (36 %) but costlier than gold loan (8 %)
• Miss one EMI → 24 % penalty + CIBIL hit
• Processing fee non-refundable even if you foreclose

Break-Even Math

If your mutual fund gives 11 %, keeping ₹60 k invested earns ₹3 300 in 6 months vs loan cost ₹2 800 → you still gain ₹500.

Check real APR on MyKamra Deposit EMI Calculator – we add GST & insurance so you see total cost.