International money transfers happen from India to abroad for numerous reasons, such as study payments, renting property, booking a vacation and many more. But a large amount of money transfer usually happens for educational purposes, travel expenses and buying properties. It is very important to refer to a verified entity while choosing the mode of transferring money abroad. Read the whole blog to understand what are the significant things to consider when transferring money abroad, how money transfer works, the best ways to transfer money internationally and more.
This Blog Includes:
- What is International Money Transfer?
- Things to Consider When Transferring Money Abroad from India
- Modes of Transferring Money Abroad
- Best Ways to Transfer Money Abroad
- Leverage Finance
What is International Money Transfer?
In simple terms, International Money Transfer is a medium to send money from your account in your country to a bank account on the other side of the world. Indians are allowed to transfer money internationally through Outward Remittance; transferring of funds from India to a Foreign country. A resident of India can transfer money to friends and family abroad with an amount limit of USD 2,50,000 per financial year. This amount should not be exceeded as it is the current set limit by the Reserve Bank of India (RBI) and the set limit is subject to changes in the future.
Also Read: Best International Money Transfer Apps in 2023
Things to Consider When Transferring Money Abroad from India
The most crucial aspects to consider while sending money abroad are as follows:
One of the most important factors in transferring money internationally is getting the best exchange rate; the value of a currency compared to another foreign currency. Exchange Rates can make a big difference when sending a large amount of money internationally. It helps you save or limit your spending while transferring money abroad. Accounting for roughly USD 5 trillion a day, the foreign exchange market has emerged as one of the largest industries in the world. A small amount of in-depth research before transferring money will help you find the best exchange rate possible to secure a valuable amount for your international money transfer.
Also Read: Foreign Money Exchange – How Exchanges Work and Who Governs the Rates
Fees and Charge
Another important factor to consider when sending money abroad is the cost amount from fees and charges. You should be aware of the charges made by the bank while transferring money abroad. Transferring fees may vary for different banks. Some banks may charge Rs. 1,000 per transfer or it may be a percentage of the amount you are transferring.
There are different tax clearance criteria on the basis of the countries from where you will be sending the money. In certain cases, residents who are 18 years and above can utilize a particular amount of discretionary allowance per year. There are also allowances for investing in funds overseas.
Reputation of International Money Transfer Protocol
Other than using bank transfers for sending money abroad, people have started to use currency specialists as an alternative due to the various offers they provide. Before sending your money through such entities, always check whether the company is an authorised body regularised to carry international money transfers.
Choose a money transfer service that gives you the biggest advantage of convenience. In today’s time, when everything has gone digital, banks are often coming up with online processes for easy money transfers. You do not need to face the hassle of travelling or standing in a queue for hours when you can transfer money abroad from the comfort of your home.
Transfer speed is another major thing that you must keep in mind when transferring money abroad. Too many times customers end up opting for a bank transfer service that takes days to complete the transfer process. A high-quality and verified transfer service will take an average of 1-5 days for international money transfers while varying on the mode of payment. Always check or enquire regarding the transfer speed of these services.
Also Read: 5 Safest Ways to Carry Money Abroad
Modes of Transferring Money Abroad
Here are the most common modes of transferring money abroad that you can utilize in your next money transfer:
- Online Money Transfer Using Internet Banking
- Wire Transfer Using Money Transfer Agency
- Bank Drafts
Best Ways to Transfer Money Abroad
There are various ways to transfer money internationally but money transfer depends highly upon the type of transaction you want to make. You may want to transfer money as soon as possible in case of an emergency. So the table below mentions the best ways to transfer money abroad:
|Bank Drafts and Cheques||Available at various banks across the country send money in physical mode, is relatively cheap, takes more time, traceable|
|Online Money Transfer||The easiest method to send money abroad, requires account details, heavy taxes and high exchange rates|
|International Money Order/ Offline Money Transfer||Deposited in Bank accounts, can be encashed at cheque cashing locations, cheap and affordable|
|Online Wire Transfer||The latest mode of money transfer, with Low fees, takes more time|
We at Leverage Finance keep in mind all of the things you need to consider when transferring money abroad. We offer assistance with International Money Transfers at the best possible prices. You can save money and along with that, you can save time by transferring money abroad with the convenience of sitting at your home. You can save yourself from bank-based transfers that require multiple bank visits, complex documentation and about 3% higher cost. All you need to do is follow the 3 easy steps mentioned below:
- Step 1: Select your Designation and Recipient
- Step 2: Fill out the required amount
- Step 3: Hit send
After hitting the send button, your transaction is done. Leverage Finance aims to make your foreign journey more financially feasible and pocket-friendly to help you reach greater heights.
Benefits of using Leverage Finance
- Leverage Finance offers a 24*7 online process for money transfers.
- No paperwork. Requires only an Aadhaar / Driving License / Passport and PAN of the Remitter are required.
- You get the best exchange rates that can make a significant difference while transferring money abroad. For example, You save 1 Re on every pound you remit -the exchange rate than banks helps you save INR 20K on a remittance of 20K GBP.
- Leverage Finance provides you with a transparent payment structure and ZERO hidden charges.
- It is the safest and quickest mode of international money transfer for students to make payments for their University Fees and living expenses. It would take approximately 8-10 minutes. For repeat customers, less than 5 minutes.
Also Read: Best Forex Cards for International Students
You can create an account with just your email id.
No, you don’t need to make a separate bank account. You just need to register at Leverage Finance and then you can easily send money abroad using your existing bank account.
According to the RBI, the Residents of India can remit USD 2,50,000 in a financial year.
So, these were some of the main things you should consider when transferring money abroad. Safe and easy money transfer is what people want nowadays. As most of the international transactions are made regarding international students and their fee payments, Leverage Finance can become your helping hand in this case. For easy money transfers, always remember that you have Leverage Finance to rely upon.