Finance

What are the factors to consider when you are going to send money to India?

Banking institutions are offering plenty of financial options to meet the demands of the foreigners or NRI’s residing in the various part of the world. These options are designed to offer the optimum flexibility and convenience when it comes to sending money to India from abroad.

However, the plethora of choices can prove to be confusing to those who want to remit. How does one select the ideal choice that will suit their needs, while providing them with the best features? Given below are different parameters that can be considered before opting for the ideal choice:

Speed

Amongst the different features, you will need to consider, speed has always been an important feature. The speed of the disbursement of your funds is crucial when it comes to transferring your funds. Most of the regular transfers take around a few days to a week. However, you will need to opt for a service that will provide you with a faster transfer in the occasion you need to send funds urgently. Therefore, when opting for a sender, look for the speed of disbursement they offer and the costing for it. Consider the situation and urgency to determine the best period within which you can transfer the money.

Coverage

The second factor you will need to consider is coverage. Not all banks or financial institutes provide a national wide coverage. Alternatively, if they do, they will charge an additional price for it. However, each of these institutes will have limitations, which require your knowledge to choose the right medium when sending money to India. Additionally, most banks deal with certain limited currencies such as US dollar, Euro, and Pound while a few others entertain the use of foreign currency cheques. Some service providers also offer a foreign currency non-resident account scheme. With this scheme, a remitter can transfer funds in any foreign currency to the local currency.

Service Cost

It is a known fact that service charges on the remittance depend on the mode of transaction and transaction provider. Before choosing the sender, you must consider checking the service costs and charges levied. The standard charges for the SWIFT mode of transaction are between 1 to 2 %. For demand drafts and cheques, the rate is at 2%. However, this can differ with private organizations. These charges are in tune with specialized services, which is offered by the operator.

Convenience

Amongst all the different factors involved in money transfer, convenience is the least considered point. However, when the time comes to remit or receive funds, this factor plays an important role. Not only does the remitter require the convenience to send funds, the receiver must also have the convenience to receive it. Options such as the online internet payment or an offline transaction can be feasible to your needs. You will also need to consider the total amount of the transaction before selecting the mode of payment.

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