• Personal Loan for job relocation or moving expenses

    Nowadays, it is no longer an uncommon thing to move away to a new location for taking up a new job. In many ways, this could be a great opportunity to improve your professional career. While moving to a new city to starting your new career can be a great thing, you must also be aware of the expenses involved in the process. There is a long list of expenses you must take care when you settle down in a new location. The cost of moving can be daunting. However, you may use personal loans in these situations to ease your burden and settle down in a new location without facing any financial troubles.

    Let’s take a look at how a personal loan can help you when you need additional funds to advance your professional career.

    Moving Expenses to be considered

    One of the biggest mistakes most people do when moving to a new location is underestimating the expenses associated with it. Given below is a list of common expenses you might face when moving to a new place:

    Packing and moving

    This is the most common expense you are likely to face when moving to a new location. The cost is likely to differ a lot from one transportation service to another. Make sure that you enquire different packers and movers in the market before setting a budget for this expense.

    Storage of goods

    If you haven’t found a place already, you may have to put your stuff in a storage unit temporarily. The cost of storage might vary depending upon the location to which you are moving. Make sure that you have adequate money to pay for storage if it takes a bit longer than expected to find a home.

    Transporting your vehicle

    If you have a bike in your current location, you may like to take it with you to the new city rather than buying a new one. You may use a transportation service to take your bike to the new city. Also, don’t forget the costs involved in getting a new number plate in the city to which you are moving (if moving to another state).

    Temporary lodging expenses

    If your employer does not pay for temporary lodging, you may have to pay it on your own. This expense could vary depending upon the time you take to find a rental home.

    Deposit for rental home

    In all major cities, you have to pay a deposit amount before moving into a rental property. Most landlords charge at least 6 months of rent as deposit money for a rental home. Though this amount is refundable, it is a significant investment you require when you move to a new city.

    Brokerage charges

    If you use the services of a broker, you must pay a brokerage commission. Typically, most brokers charge a month’s rent as commission and this must be paid as soon as you finalise a home. Hence, it is necessary to have this money beforehand while moving to a new location.

    Moving supplies

    When you start your life in a new place, you may have to buy a lot of stuff in addition to the ones you already have. This could be new furniture, vessels for cooking, gas connection, etc. You need to make provisions for these expenses in your relocation budget.

    How personal loans can help you

    Personal loans are mainly intended to take care of your emergency financial requirements. These are unsecured loans and it is not necessary to pledge any collateral in order to obtain these loans. Hence, anyone with a regular income can apply for these loans and get them instantly. Here is a list of advantages you can experience when taking a personal loan for your relocation expenses:

    Instant access to funds

    Most lenders in the market disburse personal loans within a day or two as soon as they receive all the necessary documents. The lender can process all your KYC documents online and provide approval within a matter of hours. Hence, you can get access to funds even at the last minute if you haven’t planned the expenses in advance.

    Flexible repayment options

    There are different easy options provided by lenders when it comes to repayment of personal loans. You can choose the tenure while applying for a loan. You can also choose the mode of payment according to your needs.

    Wide range of loans

    When you apply for a personal loan, you can choose any amount you want as per your specific needs. Many lenders have loans starting from Rs.50,000. Consider all the expenses listed above and apply for the exact amount you are going to need for your relocation.

    Affordable interest rates

    Though the interest rate of personal loans are higher than most other secured loans, they are much cheaper than credit card interest rates. Most lenders in the market charge somewhere between 11% and 18% p.a. for personal loans. For unsecured loans, these interest rates are quite reasonable.

    Minimal documentation and processing

    This is another important reason to opt for personal loans while relocating. The documentation involved here is very minimal. For those experiencing the stress of relocating, personal loans will not add to their burden as they are very easy to process.

    Things to note before taking a personal loan

    As noted above, personal loans come with a lot of benefits and they can be extremely helpful at the time of your relocation. However, you must exercise caution when opting for personal loans. Consider the following things before you apply for a personal loan to take care of your relocation expenses:

    • You need to make sure that the loan EMI amount is affordable within your monthly budget. The monthly income from your new job must be able to take care of the debt without any issues.
    • Make sure you have outlined a plan to repay the loan amount without any hassles. If you have any major expenses coming up soon, you must consider that while planning to take a personal loan.
    • Consider your other loans and repayments while taking a personal loan. If you have other loan obligations already, taking a personal loan for relocation can add further to your debt burden.
    • Opting for the right loan amount is one of the most important things you have to consider. If you borrow a significantly high amount, you will end up paying interest for money you are not even using. If the loan amount is not adequate, you will end up facing difficulties for necessary expenses. Make sure you find the right balance in choosing the loan amount.

    Conclusion

    Before you narrow down to a specific personal loan product, you need to check out the different products available in the market. You need to check out their interest rates and choose the best product within your affordability. Most lenders have simplified the personal loan process, and it is now possible to opt for 100% paperless personal loans. With the right personal loan product, you can easily manage your relocation expenses and eliminate the financial stress involved in the process.

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