Sending Money from India to UAE? Here’s What Every BookMyForex Customer Should Know!
Understanding Wire Transfers
A wire transfer is an electronic method of sending money directly from one bank account to another, both within the country and across borders. To transfer money from India to the UAE, a wire transfer is one of the quickest and most reliable ways to transfer funds, facilitated through secure networks like SWIFT. When sending money internationally, you’ll need to share details such as the recipient’s full name, bank account number, and SWIFT code to complete the transaction.
Banks in India typically charge high fees for international wire transfers to the UAE, often ranging between ₹1500 and ₹2000. On top of that, they add 2-3% markups to the exchange rates, making the transfer more expensive. A smarter option? Use platforms like BookMyForex that offer zero transfer fees and the lowest guaranteed rates on money transfers to UAE. We have special tie-ups with reliable partner banks to facilitate money transfers thereby maintaining the same level of trust and security as traditional banks but with interbank-linked lowest rates.
Why Indians Transfer Money to UAE
The UAE is a hub for education, business, and employment, making it a popular destination for Indians. Here are some of the most common reasons why Indians transfer money to the UAE:
1. Higher Education: The UAE is home to world-class universities, attracting students from across the globe including India. Indian parents often send money to cover tuition fees, accommodation, and living expenses for their children studying in cities like Dubai and Abu Dhabi.
2. Family Support: Many Indians have family members working in the UAE, and there are instances where financial support is still needed to cover for unexpected expenses. Similarly, families in India might assist loved ones who are just starting their life in the UAE.
3. Medical Treatment: The UAE’s advanced healthcare system attracts patients from around the world including India. Many Indians remit money to the UAE for specialized treatments, surgeries, or consultations, requiring funds to cover medical bills and related expenses.
4. Overseas Investments: The UAE’s real estate market is popular among Indian investors, offering opportunities to invest in properties in cities like Dubai and Abu Dhabi. Many investors use international wire transfer to fund these transactions.
5. Relocation and Employment: The UAE is a top destination for Indians seeking employment or permanent residency. Initial settlement costs, such as housing deposits, transportation, and visa-related expenses, often require wire transfers.
Documents Required for International Money Transfers to UAE
The documents required for international money transfers to the UAE depend on the purpose of the transfer. For family support, proof of relationship with the beneficiary is required. Similarly, for education remittances, an I-20 form or an admission letter from the university is mandatory.
There are, however, two documents that are mandatory for all transfers via BookMyForex:
— PAN Card
— Remitter Photo Cum Address Proof
For a detailed list of documents based on the transfer purpose, you can visit here
Factors to Consider When Transferring Money to UAE
1. Exchange Rates: One of the first things to check is the exchange rate – how many UAE Dirhams (AED) your Indian Rupees (INR) will get you. Even a small difference can make a big impact on the amount your recipient receives. Traditional banks and money transfer services often add a markup of 2-3% on the exchange rate. Platforms like BookMyForex, on the other hand, offer interbank-linked rates as well as lowest rate guarantee, giving you the best bang for your buck. For instance, if you’re transferring AED 10,000 and one provider offers ₹25 per AED while BookMyForex offers ₹24, you could save ₹10,000 with the better rate.
2. Transfer Fees: Here’s another thing to watch out for – transfer fees. Indian banks typically charge anywhere between ₹1500 and ₹2000 as transfer fees for money transfers, while some platforms in India even take a percentage of the transfer amount which can go as high as ₹8000. With BookMyForex, though, you can avoid these transfer fees. Just use the promo code "ZEROBANKFEE," when placing an order through BookMyForex and you won’t have to pay any transfer fees.
3. Intermediary and Recipient Bank Charges: When you send money to UAE, your transfer might pass through a few intermediary banks, and they charge a fee for this which usually range from AED 15 to AED 50. On top of that, the recipient’s bank could also charge a fee for processing the incoming funds. Pick a service provider that provides a clear breakdown of costs upfront to avoid any surprises later. The good news? BookMyForex is upfront about these costs and even lets you calculate the exact amount your recipient will get – no surprises, no stress.
4. Transfer Speed: The time taken for funds to reach the recipient varies based on the provider but nobody wants their money stuck for days. Wire transfers usually take 3-5 business days, while BookMyForex processes transfers to UAE much faster, often within 12 to 48 hours. For education transfers, BookMyForex offers expedited services with same day transfers.
5. Security and Compliance: When you’re transferring money internationally, it’s crucial to pick a platform that prioritizes security. Ensure the platform you use employs advanced encryption and secure payment gateways. BookMyForex uses advanced encryption, secure payment gateways, and document watermarking to protect your sensitive information. Plus, the platform complies with all Reserve Bank of India (RBI) guidelines and adheres to the Foreign Exchange Management Act (FEMA).
6. Tax Collected at Source (TCS): Finally, don’t forget about TCS (Tax Collected at Source) when it comes to sending money to UAE. For education or medical transfers, a 5% TCS is applicable, and for other remittances above ₹7 lakh in a financial year, 20% TCS applies. Transfers below INR 7 lakh in a financial year are exempt from TCS. The good news is that you can claim TCS as a tax credit when filing your income tax returns.
