Plenty of individuals uses money transfer services to send funds from one country or one location to another. While the reason for these transfers may vary, some of them include financing one’s education, facilitating the maintenance of retired family members amongst many others.
However, when it comes to choosing the option to remit to India, there are several factors you need to take into consideration. These factors will play an important decisive factor when it comes to selecting the vehicle to make your transfer. Amongst the factors that will influence your decision, is the costing.
Ask any individual who regularly sends funds, and they will tell how tricky it is to calculate funds. Depending on your option to send funds, the fees, charges, and margins are not completely obvious. This can leave you with an immense bill at the end of the transfer, or the excessive funding will be required to be taken on by the receiver.
In order to be aware of the amount of funds you will be spending on a money transfer, there are certain common charges you should be aware of. They include:
• Transfer fee: This is one of the most basic fees for all money transfer services. This is also known as the TT or telegraphic transfer, wire or remittance fee. Normally, this fee is fixed but differs based on the lending institute.
• Exchange rate margin: It is understandable that most money transfer services aim to make some profit in order to run their services. This is normally due when your local currency in converted into the intended foreign currency, with an added amount known as the margin rate. This is basically the difference between the wholesale exchange rate and the rate in the market.
• Corresponded bank fees:This is the fee that the sender’s bank will charge, for sending funds to the right bank or NBFC account. Normally, this is deducted from the amount that is deposited in the receiver’s account. While it may be impossible to estimate or reverse, you can always approach the sender’s institute to get more details about it.
• Receiving bank fees: If you are planning to deposit foreign currency into an account, then the receiving bank will charge you for it. For example, if you are sending INR to a Dubai bank, the Dubai bank will charge you a fee to convert it.
Using this information, you can now easily remit to India with ease.It is crucial that you are aware of the different costing factors that occurs when you want to remit to India. Not only does it allow you to calculate the funds you will need to transfer, but it will also help you reduce and avoid any unwanted expenditures.