Planning to relocate? Here's why you should consider a personal loan

Relocating to a new place is an exciting step towards new beginnings. However, it can also be stressful. Whether you're moving for a new job opportunity, better living conditions, or higher education, the financial aspect of house shifting can quickly become overwhelming.

From hiring movers to setting up your new house, the expenses add up fast. If you're considering financing your move, a personal loan like FIRSTmoney can be a practical solution to ease the burden. Let’s understand how.

When does it make sense to take a personal loan for relocation?
 

While taking a loan for relocation might sound unusual, it provides more than just financial support when used wisely. Here are the reasons why you should consider a personal loan when relocating –

1. Manages multiple expenses with ease
 

When you relocate to a new house, you’re not just paying for movers. There are packing costs, transportation fees, deposits, and sometimes even temporary accommodation. A personal loan helps you handle all these costs without depleting your savings.

2. Provides a financial cushion
 

Payday or your salary might be a long way off.  Meanwhile, you can access funds from your personal loan to meet your urgent cash needs when you move into a new city.

3. Flexible repayment options
 

One of the best things about taking a personal loan for house shifting is the flexibility. You can choose a repayment plan that fits your financial situation—whether you want to clear the loan quickly or prefer smaller monthly instalments to ease the burden. For example, FIRSTmoney lets you choose from tenures up to 60 months. You can also pay off your loan at no charges, anytime.

4. Quick access to funds
 

Sometimes, you might have to plan a relocation swiftly, without much time to save up. Digital personal loans are processed instantly, giving you the cash you need when you need it. This can be a lifesaver if you face deadlines to vacate your current home or secure a new one.

5. Support for unexpected cost
 

Even with the best planning, surprises can arise —damaged items, last-minute storage, or unexpected repairs in your new house. A personal loan provides a financial cushion to handle these unforeseen expenses without disrupting your moving process.

How does a FIRSTmoney smart personal loan help with relocation costs?
 

These key benefits by FIRSTmoney ensure your relocation happens seamlessly -

Here’s how –

1. High loan amount approvals for all your relocation needs
 

House shifting costs can be substantial. With IDFC FIRST Bank’s FIRSTmoney Smart Personal Loan, you can receive approval for up to ₹10 lakh, helping you seamlessly cover all aspects of your relocation.

2. Attractive interest rates and flexible EMIs
 

Managing your budget during relocation is easier with IDFC FIRST Bank’s competitive interest rates and customisable EMI options. With a fixed interest rate starting at just 9.99% p.a., you get predictable EMIs throughout your repayment tenure (individual interest rates may vary).

3. Zero foreclosure charges for added flexibility
 

If you can repay your loan early, FIRSTmoney allows you to do so without incurring any additional foreclosure fees. This benefit gives you the freedom to clear your relocation expenses at your convenience, helping you manage your finances more effectively.

4. Flexible personal loan repayment options
 

IDFC FIRST Bank allows you to tailor your loan repayment period to suit your situation. This flexibility is particularly helpful when dealing with unexpected costs during house shifting or additional expenses for home setup in your new house.

5. 100% digital process with swift disbursals

When you’re preparing to relocate to a new house, time is crucial. IDFC FIRST Bank’s advanced digital process ensures a fast, paperless experience. Once your loan is approved, the funds are transferred directly to your account—often within 24 hours—allowing you to manage your relocation expenses without delay. If your financial requirements increase, you also get the option to access additional funds digitally and quickly.

When can a personal loan for relocation be disadvantageous?
 

While a personal loan can be a convenient way to manage relocation costs, it’s not always the best financial decision for everyone. There are certain situations where taking on debt for house shifting could create more challenges than solutions –

1. Unstable income or job uncertainty

If your income is unpredictable or you're between jobs, taking on a loan could put you under financial strain. Without a stable salary, keeping up with monthly repayments can become difficult, leading to late fees or even negatively impacting your credit score.

2. High interest rates due to poor credit score

Lenders determine interest rates based on your creditworthiness. If your credit score is low, you may incur high interest charges, making the loan an expensive option for financing your home setup and moving expenses.

3. Already existing debt obligations

If you're already managing multiple EMIs, adding a personal loan for house shifting could increase your financial burden.

4. Short-term relocation plans

If you plan to relocate to a new house for a short period (such as a temporary job assignment), taking a loan may not be worth it as they have long-term repayment commitments. You might end up paying EMIs for months or even years after you've moved back or relocated again.

5. Lack of proper financial planning

Taking a loan without carefully estimating your relocation costs can lead to either borrowing too little (causing cash flow issues) or borrowing too much (leading to unnecessary debt). Without a clear repayment plan, the loan can become a financial burden rather than a helping hand.

5 Common relocation costs covered by a personal loan
 

Whether you are moving for a new job or experience, the stress remains the same. Relocating involves multiple costs, and a personal loan can help manage them efficiently -

1. Hiring professional movers
 

Quality moving services ensure a hassle-free house-shifting experience, but they come at a price.

2. Home setup expenses
 

Setting up a new house often includes buying furniture, appliances, and essentials.

3. Temporary accommodation
 

If there’s a gap between moving out and moving in, you may need short-term rentals.

4. Security deposits and rent advances
 

Many house owners require upfront payments before you can relocate to a new house.

5. Utility and connection fees
 

Setting up Wi-Fi, advance deposits, electricity, and water in a new house can add to initial expenses.

Things to keep in mind before applying
 

A personal loan can make relocation easier, but effectively managing it is key –

1. Understand your needs
 

Calculate your total house shifting, home setup, and other relocation costs to borrow the right amount.

2. Check eligibility and compare options
 

Ensure you meet the lender’s eligibility criteria and choose a loan with competitive interest rates and flexible repayment terms.

3. Apply online for faster processing
 

Digital platforms like FIRSTmoney from IDFC FIRST Bank offer a quick, paperless application and fast disbursal—often within 24 hours.

4. Budget smartly
 

Prioritise essential expenses, track spending, and keep a buffer for unexpected costs during your relocation.

5. Plan your repayments
 

Choose a repayment tenure that fits your budget, set up automatic payments, and make extra payments when possible to reduce interest.

By following these steps, you can manage your relocation to a new house journey smoothly while keeping your finances on track.

Financial support that will make your relocation stress-free
 

Relocation can be overwhelming, but the right financial backing can make the process smooth and hassle-free. A personal loan helps you manage house shifting, home setup, and other costs without draining your savings. This gives you the freedom to focus on settling into your new house. With flexible repayment options and quick disbursals, you can easily manage every aspect of your relocation.

Want to know if you’re eligible for a personal loan? Check your FIRSTmoney eligibility and take the first step toward a stress-free house shifting today.