Relocating to a new place, whether it is for your job or education, is a stressful, time-consuming, and costly affair. No matter if it’s your first month’s rent and deposit for an apartment, a security deposit for your dormitory or transportation and moving costs, relocation comes with a huge upfront expense. In many cases, these may be met through your savings. However, in scenarios when you are short of funds, the only option that can help with your relocation expenses is a personal loan.

Here's how a personal loan can help you make your relocation journey stress-free and comfortable

A personal loan is majorly intended to meet your financial exigencies. This loan is unsecured in nature, which means you do not require pledging any security to obtain the loan proceeds. Hence, if you have a stable flow of income, you can apply for this loan and avail the proceeds instantly. Here are some personal loan benefits you can get if you avail it to meet your relocation expenses. 

  • Quick access to proceeds

Most lenders tend to disburse personal loans on the same day of placing an application in the case of a preapproved personal loan. However, in the case of a regular personal loan, the loan proceeds may be disbursed between two and seven days.

  • Minimal documentation requirement

The next crucial reason to choose a personal loan while relocating is the involvement of minimal documentation. The basic documents required to process your personal loan are identity proof (passport, PAN, voter’s ID, Aadhaar, or driving license), residential proof (driving license, Aadhaar or passport), past three months’ bank statement showing your income details, past three months’ salary slips, and 2-3 passport sized photos. In case of a regular personal loan application process, you must ensure to keep these documents handy for a hassle-free processing experience. 

If you are opting for a preapproved personal loan, you do not require submitting any documents as the lender offers you this option only when they have reviewed your profile and have your required documents with them. For a preapproved personal loan offer, you just need to accept the loan deal through net banking or any other suggested mode and the assured loan proceeds will be processed to your account on the same day of placing the application.

  • Collateral-free loan

As mentioned above, you do not require pledging any security to avail a personal loan. The loan is unsecured in nature and is issued depending on your income, credit score, employer’s reputation, debt-to-income ratio, etc.

  • Flexible repayment option

A personal loan comes with a repayment tenure between 1 year and 5 years. Based on your repayment capacity and cash inflow, you can choose your tenure to repay the proceeds in small instalments through EMI.

- Optimal quantum

Based on your fund requirement, you can place a request for the loan proceeds of amounts ranging anywhere between Rs 50,000 and Rs 40 lakh. So, whatever your relocation needs are – whether it is to arrange for movers and packers, finance travelling expenses, pay your security and brokerage amount, set up the home, etc. – you can fund all these needs through the proceeds of a personal loan.

-Affordable rate of interest

While personal loan rates are slightly higher than secured credit options, you can still avail the loan proceeds at an attractive interest rate if your credit score and other parameters display a positive outcome.

Ending Note

Relocating is a cumbersome experience and could drain you financially. To meet your financial mismatches, you can consider opting for a personal loan. With a personal loan, you can cover all your expenses attached to relocation like your moving costs, transportation, and packing expenses. Additionally, you can also use the proceeds to book your flight tickets and purchase new products for your home. 

However, before you opt for a personal loan, ensure to use an online personal loan EMI calculator to understand the loan proceeds that you can take as per your affordability and the interest rate that you can service. Being aware of these parameters will allow you to take an informed decision and service your personal loan EMI easily as per your cash inflows.

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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.