What are the best ways to make an international money transfer?

Understanding international money transfers

The demand for international money transfer services seems to have been on the rise in the recent past. The absence of a universal currency is the reason why sending money across countries is so necessary. Fortunately, there are many financial entities providing such services. Previously, there were many costs associated with this service. Agencies and banks deducted hefty amounts by deceiving customers under the label of “hidden costs”. The frustration of many clients led to the arrival of new institutions providing such services. Consequently, the existing service providers had to improve their services because the new ones were established to curb the inefficiencies of the old.

Means of undertaking international money transfers

Today you have numerous options of transferring your money outside your country. Not only established banks but also can you resort to other means as well. These include:

Agencies assisting money transfer - Bodies such as Western Union, have been in this market for a while. Their services can be relied upon as almost each country in the world has opened its doors to their services. You can transfer the money from an international bank account, where the recipient can encash it without any hassle. The only thing you need to keep in mind is considering the fee they charge and their currency conversion rate. Most of these agencies provide a diurnal rate to clients which have to be adhered to and the transfer happens over the course of a week or maximum two. Limits to such an affair depends on the kind of service you opt for and the country you are sending the money to. Agencies such as Fedex have also been a part of this picture for a while. They usually deliver faster than Western Union. India Post has also started the service in recent times.

Wire Transfer - the conventional method of transferring funds globally. Allot the amount to be transferred and mention the recipient's account details. The bank charges a fee for this service and transfers the funds within a few days, varying from country to country, amount being transferred and the banks involved. The surcharges and hidden costs via this method is what frustrated people and called for new means to transfer money. However, banks have made it convenient by making this procedure more transparent, providing customers with maximum value of their money and other secure features like tracking the funds.

Digital wallets - owning a digital wallet is the new trend in money transferring. It is as easy as having an account on a mobile application and linking it with your bank account or any other entity that provides you with monetary balance. You can use your balance and transfer funds to another person’s digital wallet. There are many digital wallet service providers and they have definitely eased the concept of transferring money, since users can now afford to split restaurant bills to sharing cabs by conveniently transferring money online.

As world economies move towards a digital age, online money transfer is the very basic intricacy that needs to be addressed efficiently. Evaluating the improvement in the service over the past decade or so can lead to the conclusion that we are progressing towards achieving efficient and transparent means of transferring money. This would allow us to make use of the value of money we own and avoid hefty payments to avail such services, which in today’s world is a requirement for most.

Quick remit: The ideal solution for quick money transfers today

What does HDFC offer in this regard?

HDFC, the 2nd largest Indian bank in the private sector has experience of more than 20 years in offering financial services in and out India. HDFC offers its valuable services to the NRIs for money transfer through 3 different ways especially from USA to India. The most popular method of money transfer being referred to are QuickRemit while the other options of transferring money includes Demand Drafts, Telegraphic transfers and traveler’s cheque.

What is QuickRemit?

QuickRemit, one of the popular options offered by HDFC allows you send money, electronically from US, Singapore, UK or the Euro Zone to India. However before you start you need to follow few simple steps in order to transfer money successfully. First you need to register online in the QuickRemit site by providing the basic details. Only US customers are needed to provide their bank details. After you set up an account it will be then verified by the bank. Once the verification process is successfully over then you can proceed to transfer the money. However, this entire process of verification may take around 3-4 days.

Benefits of QuickRemit
QuickRemit is somewhat time consuming and thus falls slightly short when compared with the modern technology based services like Transfast, Xoom, etc. However this process offers several benefits too which are:

1. The process as such being provided by HDFC is trustworthy, convenient, cheap, transparent and values the security of its clients.

2. It is safe as it maintains the privacy of your personal information and transaction takes place after you authorize it personally.

3. QuickRemit allows the transfer of money for basically all kind of payments.

4. QuickRemit allows both; it offers credit directly to the recipient’s HDFC Bank Accounts and also to other bank accounts that the recipient may have. QuickRemit allows you to transfer money to more than 90 banks all over India by using the NEFT / RTGS Platform provided by the Reserve Bank of India. However the Bank does not assure the time delivery procedure while crediting money to other accounts.

5. QuickRemit offers admirable exchange rates.

6. The transactions can be duly tracked online.

7. You also have the opportunity to transfer money within a short period of time against a slight surcharge.

Health Insurance: Useful tips that will help make your purchase decision

What and Whys of Health Insurance

A recurring premium paid by an individual or a family to safeguard their future medical expenses is known as health insurance. This is an agreed contract between the insurance providing entity and the individual. It is an easy and systematic way to ensure that you would not have to suffer when the time comes for an urgent or expensive medical treatment. It is also renewable and transparent; hence consumer friendly.

Choosing the right provider

Acquisition of Health Insurance is a simple procedure with diverse options. Each option is considered as a plan. To begin with, you register on Health Insurance India - a marketplace and then proceed to enroll your family or yourselves in a plan.

Health Insurance is offered by many companies. Choosing the most appropriate plan depends on your requirements and budget which can indeed turn out to be an elaborate process. However, you should always note a few key points to consider before we invest in any one of these plans. A few points are:-

1) Identifying the category the plan falls under – types of health Insurance plans are mainly divided into four categories - Platinum, Gold, Silver and Bronze. Each category reveals the relationship between the costs you incur and the care the particular plan provides. Nevertheless, plan categories have no connection with the ‘quality’ of care provided.

2) Comparison of costs to Utility of Plan - under any insurance plan (in Healthcare) the consumer is required to pay a monthly premium, which is a fixed monthly sum of money. Whether or not the consumer uses the money every month for medical care is irrelevant. Hence, a consumer should have an explicit idea of where his/her money is going and how useful it would be for him/her.

We never know when we have to encounter an expensive medical emergency. Health Insurance
helps us live tension free when it comes to dealing with this problem.

Benefits of a Health Insurance

A Health Insurance provides the following benefits:

It makes Healthcare affordable - in a medical crisis many patients are not able to meet the financial requirements of the operation/surgery. Health Insurance covers some or most of your medical expenses, reducing the burden on your pocket at a particular time.

Ensures Preventive Care - we hardly ever want to visit the doctor. Now and then, when we experience some small abnormalities we try to tackle it ourselves. However, if we pay premiums and enroll ourselves in a health insurance plan, we are more likely to utilize this opportunity by visiting the doctor for frequent health check-ups, thereby ensuring Preventive Healthcare against diseases.

How to prepare your business loan application for a guaranteed approval?

To have a successful business and gradually watch it grow, it is important to invest in it properly. The equipment, infrastructure, properties and advertisements require a certain amount of expenditure. Initially, managing these costs can be difficult, and this is when a business loan can be of great help. When you are applying for your business loan in India or elsewhere, it is natural to be apprehensive about it.

What you need to consider before?

The idea of displaying your business plan to a lender and the possibility of rejection may intimidate you. There are certain things that you need to keep in mind before putting in an application for a business loan. They are:

1) Before taking the plunge, it is important to know where you are going. You must have a fair understanding of the different kinds of loans that are available, as well as the terms and conditions that come along with it. This process will be time consuming, but it is definitely an important step.

2) The next crucial decision that you need to make is whether you want to apply for the business loan in a bank or would you prefer it online. Both the ways have their own advantage. If you are applying in a bank where you already know the people, it makes it easier for you to communicate. Moreover, it will be cheaper than going for an online loan. However, if you choose an online loan, the application process will be easier. At the same time, you can connect with many lenders with a single application.

3) Be sure that you find the best lender for your business loans. You must carefully go through the lending guidelines and see if your application fits with them.

4) Keep your strategy ready if the lender is keen to know how they will be repaid. It may be by the repayment on the basis of the principal and the interest method, or by selling a certain portion of your business assets.

5) Before the final application, it is advisable to review it completely and clear all your doubts, if any. By this process, you will avoid making mistakes. You must be completely accurate and truthful with the information that you provide. Your supporting documents should be ready to match the information that you have stated.

6) In case your lender has a query regarding your plan, make sure that you answer them without taking too much of time. If you require more time, it is always better to inform them about it.

What are the steps to convert your resident savings account into an NRO account?

If you are shifting base to another country, it is necessary for you to close your current savings account in India, or get it converted to an NRO account. A NRO (Non-Resident Ordinary) account allows you to deposit your earnings that you earn from India, like interest, dividends, rent, etc. Funds collected from abroad which come in fully convertible currencies may be deposited in an NRO account. You are also entitled to issue cheques for making local payments, EMI payoffs and investments through your NRO account.
Following the steps

You can easily convert your existing resident savings account into an NRO account by the following steps:

i) Filling up the form: There are specific forms prescribed by the banks for converting savings accounts to an NRO account. You can either collect the form from your bank or download it from your bank website. Remember that it is necessary for every account holder to sign in the form. You can use a single form for converting all your savings accounts that you have with your bank.

ii) Providing documents: Along with the form mentioned above, you need to fill and submit a form for opening a new account too. The proof of address of your overseas address, copies of your passport, work permit and valid visa requires submission. A copy of your OCI (Overseas Citizen of India) or PIO (Persons of Indian Origin) card, if applicable, needs to be submitted.

iii) Adequate balance in account: If your account that you wish to convert to an NRO account has zero or very low balance, you have to fund it with the required minimum balance.

iv) Submit to the bank: Once you have filled up the forms and prepared the necessary documents that are required, you have to submit it to that bank branch where you have the account. If you are already in some other country, the Indian Embassy needs to attest your forms and documents and then you can send it to your bank.

Once your form and the documents are received, examined and verified by the bank, your resident savings account will be re-designated as your NRO accounts. The bank may charge you an amount to carry out this process of conversion. You may easily repatriate the interest that you earn on NRO accounts, once the taxes have been deducted

Different ways you can transfer funds to your NRE account

What is an NRE account?

An NRE account is a kind of NRI account which stands for - Non Resident External Rupee Account. It is a savings or a current account held by a Non Resident Indian or an Indian Overseas Citizen, in an Indian bank. It conveniently allows the holder to deposit their foreign earnings in an Indian bank for investments in India, with no restrictions on transferring the money back to their foreign account. Moreover, money deposited in foreign currency is always converted to Indian currency while it exists in the NRE Account.

Methods of Transfers

There are several ways you can choose to deposit money into your NRE accounts. Some commonly followed methods include:-

1) Wire transfer - transfer of funds from your overseas bank account to your Indian bank account. All you have to do is fill in an application form requesting a transfer of money and your beneficiary account will be credited in 24 hours.
2) Transfer agencies - Western Union Money transfer and other such agencies assist you with your requirements to transfer money to another entity or account. However, these may charge particular service costs.
3) Remittance – Some bank have established a secure application to transfer your funds. You need to register on the mobile application and follow the guidelines for the transfer. It provides perpetual servicing along with tracking information to keep a check on your funds. Similarly, HDFC bank has come up with remit2India, while Kotak has click2remit whereas SBI has SBI Express.
4) Direct Deposit - you can directly deposit funds to your account by visiting the bank or sending it via somebody. It can be deposited in foreign currency which can be converted to Indian currency.
5) Traveler’s cheque - During your travels in India you can deposit a traveler’s cheque and administer the additional funds in your NRE account.

While secure and efficient methods are prevalent, transfer and allocation of funds can come across certain unfortunate hurdles. Scams are a common issue that have victimized many NRIs. The benefits that these kinds of NRI bank accounts have in store are generally helpful for non-resident Indians. Adhering to guidelines established by our banks providing these accounts, is essential for all account holders. Negligence and carelessness can end up costing you a lot, whereas simply keeping a check can reap you lasting benefits.

Are you aware of the different types of NRI account?

What is an NRI account?

If you didn’t know, a non-resident Indian (NRI) may also run a bank account (savings/fixed deposit and/or current) in India. Such accounts are operated by a person of Indian Origin or an Indian citizen residing overseas. However, this access is restricted to NRIs and not foreign internationals. To establish and maintain an NRI bank account, households need not seek the permission from the Reserve Bank of India, they can simply come in contact with a bank holding the license to deal in foreign currency. There are now various types of NRI accounts in India, which provides users with a variety of options to choose from, with each type characterized uniquely.

The Types of NRI Account

Among the various types of NRI accounts prevalent in the country, the most common types include:-

1) NRO Account - a Non Resident Ordinary Rupee (NRO) Account, is a current or savings account in an Indian bank. This helps the NRI manage their earnings in India, including dividends, rent and pension from other countries. This account is operated just like another Indian resident’s account. The funds are reserved in Indian Currency and can only be repatriated by permission from the RBI. Interest on balances is accumulated, however it is subject to tax. This account is ideal for an NRI earning in India, constantly requiring to withdraw or deposit in the account with no intention of repatriation.

2) NRE Account - a Non Resident External Rupee (NRE) Account refers to the type of NRI account India which girdles to help in the assistance of depositing funds, to a financial entity in India. There is an agreement upon the conversion and/or transfer of these funds to Rupees from Foreign currency or vice-versa, in and outside India. Ergo, repatriation is feasible through this account, though the reserve is kept in Rupees. The account holder’s earnings on investments in any part of the world, can be credited to this account and the interest accrued is tax free. This account is ideal for an NRI who frequently has to send money to or from India.

3) FCNR Account - a Foreign Currency Non Resident (FCNR) Account is that type of an NRI account which enables the NRI to save their overseas deposits in an Indian bank as term deposits for up to a maximum period of 5 years. This is more like a fixed deposit of sorts, rather than a savings account and withdrawal before the time period, results in the payment of a penalty. The reserves are maintained in foreign currency and any interest or payment receipts earned are maintained in the same currency as well. However, it can also be made available in Indian Currency with existing exchange rates. The taxation policy remains the same as an NRE Account.

4) NRI Trading Accounts - a non-resident Indian trading account makes it a possible prospect to invest in the Indian trade market through depositing funds in this account. There are several sub-categories under this type of an account, namely - NRO Demat Account, NRE Demat Account, and Foreign National Demat Account.

A few Indian Banks providing such facilities to NRIs include - SBI, HDFC, ICICI, Central Bank of India, etc.