According to the UN, India has the largest diaspora population in the world. In 2015, 16 million people were living outside of the country. No doubt that given the figures many of them are confronted to money transfers. Many questions on that matter can arise; like how to find the best way to send money to India, what solution is the cheapest. Here is a guide to help you with this because money transfer does not have to be complicated or expensive.
How to send money to India?
There are actually many options to send money to India. It all depends where your family, or the person you are sending money to, lives. If they are located in rural areas, you’ll probably need them to receive cash as they might not have a bank account. On the other hand if they live in a big city you’ll be able to make a wire or to use online operators.
In both cases there are solutions that you should be avoiding as much as you can.
- If you want to receive cash: make sure to avoid high street operators such as Western Union or Moneygram. I know they are the most famous and they have good reputation but they will charge you outrageous fees. The normal price of a transfer with them is around 10% of the amount sent. Imagine you send $50 they’ll charge you $5!
- If you intend to send money to someone who has a bank account, make sure you avoid your bank. Same as the solutions just mentioned, the fees are extremely high. Apart from paying fees related to the transaction or amount you are sending, you’ll pay some on the exchange rate as well. Banks typically apply exchange rates that are poorer than the real one and keep the difference for themselves.
What is the best way to send money to India?
So if you followed me you should be avoiding either you bank or Western Union when planning to send money to India. Then you might be wondering what is left? Actually a lot of solutions exist apart from that two: online money transfer operators. According to the World Bank there are more than 500 of them operating around the world. The main advantage of these solutions is that they are cheap and quite easy to use. Make sure to used comparison platform to find the cheapest one.