In this global economy, it is common for people to cross populate and work in foreign lands. Many such NRIs who have settled abroad for work,  often transfer money  back home to support their family and loved ones.

One of the most convenient and popular ways of sending money to India from a foreign country is through Inward Remittance. If you are wondering what is inward remittance and how to remit money to India from your country of residence, read on.

What is Inward Remittance?

Inward remittance is a secure Bank to Bank process to receive money in a domestic account from an international account .  In case of India, inward remittance would mean any funds that are transferred to an India account from a foreign bank.       

In India, inward remittances are regulated by the RBI as per the Foreign Exchange Management Act (FEMA). This regulation provides guidance on how much can be transferred, and the tax implications on the amount transferred.      

How can you Send Money to India?

As per RBI, there are a couple of routes through which inward remittances are processed, namely Transfers via SWIFT , Rupee Drawing Arrangement (RDA) and Money Transfer Service Scheme (MTSS).

Under the RDA route, you can simply transfer money from your foreign bank account to an Indian bank account through wire transfers. This is probably the most common way through which you can       receive inward remittances in India. Through this arrangement you can send any amount without restriction. But for trade, inward remittances are capped at Rs. 15 lakhs.

If you are looking for a safe, secure, and quick way of sending money to your loved ones in India, check out IndusInd Bank’s Inward Remittance services right here.

Under the MTSS route, specialised money transfer agencies work with authorised agents in India to facilitate inward remittances only for personal needs . Thus there is a cap of $2,500 & equivalenmt in other currencies per transfer under this route. Also, a maximum of 30 transfers can be made per year through the MTSS arrangement.

Tax implications you should know about

There are no additional tax implications for the sender apart from paying income tax that the sender is required to pay in his/her country of residence.

The receiver also will not be subject to any tax implications provided he/she is a close relative. The term close relative implies, spouse, brother/Sister of the individual or their spouse, any lineal ascendant or descendant of the individual or their spouse, or brother or sister of the sender’s parents as defined the companies act 2013.

However, if the receiver is not a close relative (for example, a friend), any amount beyond Rs. 50,000 will become taxable in the hands of the receiver.

Bottom Line

If you are looking for a safe and secure way to make an inward remittance to India, check out IndusInd Bank’s inward remittance services right here and send money in just 1-2 working daysThrough their vast correspondent bank network you can receive money in any  currencies at competitive exchange  rates.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision.  IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.   

It is important to check certain factors such as type of car and documentation before applying for a used car loan. A second-hand car loan from IndusInd Bank comes with numerous benefits such as attractive interest rate & end-to-end service.

While many people want to own a car for the ease and convenience it offers, not everyone can afford the cost of a new vehicle. The need to have one’s own car has also been heightened by the coronavirus pandemic which saw a reduced dependence on public transportation for fear of catching the virus. Today, even though the pandemic may be on the wane, its economic ramifications are continuing, making a new car unaffordable for many. If you’d like to have your own car, but don’t have the budget for a new one, investing in a second-hand or used car could be a great option. With second-hand or pre-owned car loans being easily available, you may always fulfil your dream. But before you decide to go ahead with a car loan for an old car, here’s a list of things you should make sure to check.

Type of Car

The type and age of the vehicle matter when you apply for a used car loan. Do not get carried away and end up buying an older model just because it is fancier –a BMW for instance. It is best to opt for a car that is not more than 3-5 years old. Additionally, make sure to have a figure in your head about the amount you can invest in the car, including the loan amount you wish to apply for.

The Rate of Interest

Used car interest rates are typically steeper than new car loans due to the higher associated risk. Unlike a new vehicle, a used car does not come with the manufacturer’s guarantee. Again, factors such as age, type, and make of the car are important when it comes to a second-hand car loan. The duration of a used car loan generally ranges from 1-5 years.

Paperwork & Documentation

Make sure to thoroughly check all paperwork, including insurance and registration certificates. Also, the engine number and chassis number on the vehicle must match with the number mentioned in the registration certificate.

Do not neglect to check that the registration certificate is clear of any hypothecation to any bank or credit institution.

Time Duration for Loan Disbursal & Loan Amount

Disbursing a second-hand car loan usually takes banks some time as several things need to be checked – such as whether or not there are pending police cases against the car, or if the car has had any accidents or service issues. Also, keep in mind that the loan amount is typically sanctioned in accordance with the car’s market value as determined by the lender.

Pre-owned Car Loan from IndusInd Bank

Taking out a pre-owned car loan from IndusInd Bank comes with several benefits. These are:

• Attractive used car interest rate
• Minimal documentation with doorstep assistance, besides quick loan processing and disbursal
• Easy & flexible loan repayment tenure, ranging from 1-5 years
• Get finance up to 100% of the car value, subject to factors such as vehicle cost and credit parameters
• Enjoy end-to-end service from pre-owned car research to title transfer and deal closure

With basic paperwork, simple eligibility criteria for salaried and self-employed individuals, and pocket-friendly EMI options, a pre-owned car loan from IndusInd Bank ticks all the right boxes. Apply today and bring home the vehicle of your dreams!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision.  IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.