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Omozing Personal Loan · For job switches
The new offer wants you to join in 30 days; your contract says 90. Buying out the rest of your notice period can cost one to three months of salary, due right when your income is changing hands. A short personal loan can bridge it, and be cleared when your new employer’s reimbursement or first salaries arrive.
Most employment contracts in India require you to give notice before resigning, commonly 30, 60 or 90 days. Large IT services companies often set 90 days, while many product companies and startups use 30 to 60 days (Instahyre, checked October 2026). If a new employer needs you sooner, you have three choices: negotiate an early release, serve the full notice and push your joining date, or pay a “buyout” for the days you will not serve.
The buyout is not a fine; it is the salary for the unserved notice, recovered under your contract. Your employer may let you pay it directly, or deduct it from your full-and-final settlement (your last month’s salary, leave encashment and other dues). Whatever is not covered by the settlement, you pay.
A personal loan is simply a way to fund that payment. At Omozing it is our standard unsecured personal loan, disbursed to your own bank account, with no special “buyout” rate. Because many new employers reimburse some or all of the buyout, it is often a short bridge rather than long-term debt.
You have a signed offer with a clear pay rise, your new employer will reimburse the buyout later or pay a joining bonus, and you need cash now to secure an early release.
The new role is a meaningful step up and the joining date cannot move, but your full-and-final settlement will not cover the whole buyout.
The new salary is barely higher, the offer is not yet in writing, or your current employer might release you early if you ask and offer a clean handover.
Your contract decides the formula. The most common base is basic salary; some contracts use gross or fixed pay, which makes the buyout much larger (Instahyre, checked October 2026). The per-day amount is usually the monthly figure divided by 30 or by the days in the month, multiplied by the days you will not serve.
Illustrative: basic ₹50,000 and gross ₹90,000 a month, per-day rate = monthly figure ÷ 30. Your contract may use a different base or divisor, and the employer may deduct the amount from your full-and-final settlement instead.
Two more things change the real number. First, the full-and-final settlement: unpaid salary for days worked, leave encashment and any pending reimbursements can be set off against the buyout, so you may need far less than the headline figure. Second, the new employer: many product companies and global capability centres offer buyout reimbursement, often capped and paid against proof, but it is not universal, so ask the recruiter before you accept.
Work it out in four lines:
Ask HR for the exact figure in writing, with the base and number of days.
Ask what will be adjusted from your last salary and leave encashment.
Your old salary stops and the new one may arrive 4 to 6 weeks after joining. Add one month of essential expenses and existing EMIs if your savings will not cover that gap.
If the new employer reimburses the buyout within a few months, you can still borrow it, but plan to prepay with the reimbursement.
An illustrative case: a 60-day buyout of ₹1,00,000, of which ₹40,000 is set off against leave encashment, plus a ₹60,000 cushion for the month before the first new salary. The loan needed is about ₹1.2 lakh, and a ₹75,000 reimbursement from the new employer three months later can go straight into prepayment.
Reducing-balance maths at 11% a year, our starting rate, before the processing fee. Your rate depends on your credit profile and is shown in your Key Fact Statement.
| Rate (per year) | 6 months | 12 months | 18 months | Total interest over 12 months |
|---|---|---|---|---|
| 11% (our starting rate) | ₹20,647 | ₹10,606 | ₹7,262 | ₹7,270 |
| 16% (illustrative) | ₹20,944 | ₹10,888 | ₹7,543 | ₹10,652 |
| 20% (illustrative) | ₹21,183 | ₹11,116 | ₹7,772 | ₹13,394 |
Reducing-balance EMIs on ₹1,20,000 before the processing fee (3%–7% + GST). The 16% and 20% rows are illustrations, not offers; your rate, fee and APR are in your Key Fact Statement, and prepayment terms are in your loan agreement.
A rise in salary makes a short tenure easier. If your take-home rises by ₹15,000 a month, a 12-month EMI of around ₹10,600 is largely paid for by the increase, and the loan is gone within a year.
| Option | Works well when | Watch out for |
|---|---|---|
| Negotiate early release | Your manager values a clean handover | Get the agreed last working day in writing |
| Serve the full notice | The new employer can wait | Risk the offer if they cannot |
| Set off against full-and-final | You have leave and pending dues | Settlement can take weeks; agree it in writing |
| New employer reimbursement or joining bonus | Offered in your letter | Caps, proof required, and clawback if you leave early |
| Savings | You can pay without emptying your emergency fund | You also need a cushion for the salary gap |
| Unsecured personal loan | A shortfall that will be repaid from the higher salary or a reimbursement | Processing fee; apply before your current salary stops |
| Salary advance apps | Rarely suitable; your salary is changing employer | High fees for short periods; see salary advance loans explained |
Keep your offer letter and HR’s buyout calculation handy for your own planning.
Timing matters. Lenders assess your current employment and salary credits. A job change between application and disbursal can affect the decision or delay it, so be upfront about the switch when you apply. A spouse or family member can join as a co-applicant, and if your score is below 750, see how we assess scores from 600. The Key Fact Statement shows the rate, fees, APR and EMI dates before you sign.
Keep the payment receipt, relieving letter and experience letter together. Your new employer will want proof for any reimbursement, and you will want them for background verification.
Apply for the gap with one fixed EMI and clear it early when your reimbursement arrives. You will see the exact rate, fees and APR in your Key Fact Statement before you sign, and Omozing never asks for an upfront fee.
If the move also means a new city, our rent deposit and relocation loan guide covers the deposit and moving costs. If you are switching to retrain, see the skill upgrade loan page.
Yes. Omozing’s personal loan can be used for any legitimate personal purpose, including a notice buyout. Salaried applicants with a take-home salary of ₹40,000 or more and a credit score of 600 or more can apply.
It depends on your contract. It is usually your basic salary, sometimes gross or fixed pay, divided by 30 or the days in the month, multiplied by the notice days you will not serve.
Often, yes, if your contract allows it. Unpaid salary, leave encashment and other dues can be set off, which reduces what you need to pay or borrow. Ask HR to confirm the calculation in writing.
Some do, through a buyout reimbursement or joining bonus, usually capped and paid against proof, and often with a clawback if you leave early. It is not universal, so ask the recruiter before you accept.
You can apply, but tell us about the switch. Lenders verify current employment and salary, and a change of employer before disbursal can affect the decision or its timing.
Yes. Prepayment and foreclosure terms, including any charges, are set out in your Key Fact Statement and loan agreement.
The tax treatment of notice pay recovered or reimbursed depends on how your employers record it. Ask HR how it will appear in your salary records and check with a tax adviser.
Sources: Instahyre, “Notice period in India”, for typical notice periods, buyout bases and reimbursement practice; checked October 2026. Salary figures and calculations are illustrative. Your employment contract and HR policy decide your buyout. General information, not legal or tax advice.
Omozing is the digital lending brand of Aparampaar Finance Private Limited, an RBI-registered non-deposit-taking NBFC. Loans are subject to credit assessment; the rate, fees and APR for your loan are set out in your Key Fact Statement before you sign. See our regulatory disclosures, schedule of charges and grievance redressal process.