Get a personal loan to ease the financial strain of moving to a new location. Read about the benefits and things to consider when applying for a personal loan for relocation.
Relocating to a new city or country can be costly, with expenses like hiring packers and movers, paying advance rent and security deposits, and setting up a new home. When your savings fall short, a personal loan can offer instant access to funds, allowing you to cover all these costs without dipping into your savings.
With flexible repayment tenures and affordable EMIs, a loan for moving costs can help ease the financial burden. Unlike secured loans, it requires no collateral, making it easier to access. Additionally, personal loans can be used for other needs like home renovation, medical emergencies, education, or weddings, offering a versatile solution for various financial requirements.
Bajaj Markets allows you to compare various lenders to meet your relocation needs. Here is a list of the available offerings:
| Available Offerings | Max Loan Amount | Minimum Interest Rates | Max Tenure | Processing Fees |
|---|---|---|---|---|
₹55 Lakhs |
10% per annum |
96 months |
Up to 3.93% of the loan amount (Inclusive of taxes) |
|
₹3 Lakhs |
2.79% per month |
18 months |
Up to 5.5% of the loan amount + GST |
|
₹5 Lakhs |
12.75% per annum |
48 months |
0.70% to 2.80% of the loan amount + 18% GST |
|
₹5 Lakhs |
14% per annum |
36 months |
Up to 2% of the loan amount |
|
₹10 Lakh |
15.95% per annum |
60 months |
Up to 3% of total loan amount |
|
₹5 Lakhs |
18% per annum |
42 months |
2% to 6% of the loan amount + GST |
|
₹10 Lakhs |
16% per annum |
60 months |
2%-5% of the sanctioned amount |
|
₹4 Lakhs |
14% per annum |
24 months |
3%-5% of the loan amount |
|
₹40 Lakhs |
10.99% per annum |
72 months |
1.10% - 1.50% of the loan amount + GST |
|
₹5 Lakhs |
14% per annum |
60 months |
Up to 3% of the loan amount |
|
₹15 Lakhs |
12% per annum |
48 months |
Up to 3% of the loan amount + GST |
|
₹5 Lakhs |
12% per annum |
36 months |
1% of the loan amount |
|
₹10 Lakhs |
1.33% per month |
60 months |
Starting from 2% of the approved loan amount |
|
₹45,000 |
24% per annum |
90 days |
₹50 to ₹200 + 18% GST (maximum APR of 48%) |
|
₹10 Lakhs |
14.50% per annum |
60 months |
2% to 4% of the loan amoun |
|
₹1 Lakh |
18% per annum |
12 months |
2% - 12% of the loan amount |
|
₹5 Lakhs |
15% per annum |
60 months |
2% - 2.5% of the loan amount + GST or ₹500 + GST (whichever is higher) |
|
₹5 Lakhs |
9.99% per annum |
60 months |
1% - 3% of the loan amount + GST |
|
₹25 Lakhs |
12% per annum |
60 months |
0% - 6% of the loan amount |
|
₹5 Lakhs |
1.5% per month |
36 months |
Up to 4% of the loan amount |
|
₹5 Lakhs |
18% per annum |
12 months |
2% - 6% of the loan amount |
|
₹7 Lakhs |
13.50% per annum |
60 Months |
Up to 4% of the loan amount + GST |
|
₹6 Lakhs |
17.25% per annum |
60 months |
1.50% to 4.50% of the loan amount |
Disclaimer: The mentioned details are subject to change at the lender’s discretion.
A personal loan offers you quick access to money to cover moving expenses. Nowadays, many lenders offer online personal loans requiring minimal documentation and instant disbursal.
In some cases, you can expect the approval status and amount within a few days.
Most banks and Non-Banking Financial Companies (NBFCs) offer unsecured personal loans. You won’t have to pledge assets to get the funds.
Thus, you can keep your assets risk-free while accessing instant funds
The minimum and maximum tenure of personal loans is typically between 1 and 8 years. This means you can choose the tenure over which you will repay the relocation assistance loan.
When selecting the tenure, ensure that the interest payments are considered. A longer tenure can reduce EMI and increase the overall interest amount.
The interest rate of a personal loan is determined based on your CIBIL score. If you have a score of 750 or above, you can expect optimal loan terms.
However, a lower CIBIL score can negatively influence interest rates.
Personal loans don’t come with any end-use restrictions. Thus, even though you primarily applied for a personal loan for relocation, you can use it for other purposes too,
like setting up your home or buying interior design pieces.
These expenses can be covered regardless of the relocation distance. You can use personal loans to move out of state or locally. You can also get a personal loan to move abroad, but some lenders may restrict funds for international relocation. It is advised to check and understand all the terms before taking a personal loan.
If you have enough savings, you might not need loans to help with moving costs. However, if your savings are not enough or if you find the need to tap into your emergency funds,
applying for a personal loan might be a better option.
Getting a personal loan lets you keep your emergency funds intact by giving you access to money and allowing you to repay it in manageable instalments.
A personal loan for moving expenses can potentially allow you to improve your CIBIL score if you repay it on time. Timely loan repayment will reflect on your CIBIL
score and may increase your chances of getting a credit product in the future.
However, late payment or paying less than what’s owed can impact your score. For example, a single late payment, even by just one day, can tank your CIBIL score by 50-100 points, depending on the individual's credit history.
If you pay a little less than what’s owed, the lender will accept the money as a complete payment. However, this will leave a “Settled” status on your CIBIL report. This mark indicates that your account was settled and not fully paid.
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Whether you get a personal loan for relocation quickly or not can depend on your eligibility. The speed of the loan approval comes second after eligibility. If you are not eligible, your application won’t move forward, and it won’t matter which bank or NBFC gives personal loans easily.
Eligibility criteria and documents required for a personal loan for moving can vary from lender to lender. However, some general criteria are common across most loan providers.
You need to meet the following eligibility criteria to get a personal loan for relocation:
Age should be above 18 years
Good CIBIL score (Above 600)
Stable income (Minimum income of ₹10,000 per month) and employment
Employed with a public, private, or MNC
Indian nationality
You should check the lender’s official website to know specific eligibility criteria.
In addition to meeting these criteria, you’ll need to submit certain documents to verify your eligibility and repayment capacity.
Make sure you have the following documents ready:
| Identity Proof (Choose one) | Address Proof (Choose one) | Income Proof (Choose one) |
|---|---|---|
PAN Card |
Aadhaar Card |
Bank Statement |
Aadhaar Card |
Voter ID |
Salary Slips (last 3 months) |
Voter ID |
Passport |
|
Passport |
Driving Licence |
|
Driving Licence |
Electricity Bill |
|
|
Telephone Bill |
|
Note: This is an elongated list of the possible documents required. For the documents needed to get your personal loan, check the lender's website or contact them.
You can apply for moving and relocation loans like you would apply for any other personal loan. Here are the typical steps to get a personal loan after you have selected a lender:
Begin your loan application by clicking on ‘Apply Now’
Select your profession from the dropdown menu
Enter your mobile number and residential PIN code for verification
Carefully review and accept the terms and conditions
Click ‘Proceed’ to continue with your application
Provide essential details such as your PAN number, name, date of birth, monthly salary, employer information, email address, gender, and salary payment method
Submit your information to instantly view personalised loan offers from multiple lenders
Choose your preferred loan offer, specify your repayment tenure, and complete the application
A representative will contact you shortly to assist with the next steps in your loan process.
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You can use a personal loan to cover international relocation costs in most cases, but some lenders may restrict its use. It is important to consult with the lender before taking a personal loan for international relocation expenses.
Taking a personal loan for relocation can have both a positive and negative impact on your credit score. If your CIBIL score is already poor, there is a chance that your loan application will be declined. In this case, you might have to apply to multiple lenders to get a personal loan.
Since lenders check your CIBIL score each time you apply for a loan, it may reflect negatively on your credit score. On the other hand, if you get a loan and repay every instalment on time, your CIBIL score can potentially increase.
There is no single response for this, as the maximum loan for relocation expenses can vary from lender to lender.
Yes, you can take a personal loan for relocation even if you have an existing home or personal loan. However, the chances of approval of this loan will largely depend on your CIBIL score. With a high CIBIL score, you can potentially take multiple loans simultaneously.
While it is possible to obtain a relocation loan with a low credit score, it may be more challenging. Lenders may either offer lower loan amounts or higher interest rates. It’s advisable to check with multiple lenders and explore options like secured loans if needed.
Alternatives to relocation loans include:
Home Equity Loan: If you own a home, you can leverage its value
Credit Cards: Useful for covering immediate expenses, but beware of high interest rates
Borrowing from Family or Friends: A flexible option with no formal process
Employer Relocation Assistance: Some companies provide relocation packages to help cover expenses