What is the process of outward remittance?

The process of outward remittance is that of sending money abroad, and it is a process that is governed by many regulations. The process of outward remittance is mostly done via banks. Although, you need to remember that you cannot trust any individual or financial firm with the task of sending your money. However, people still rely on these agencies a lot as they are faster than the banks but also charge a lot. That is why the process of outward remittance is only applicable to banks.

There are many options to send money overseas. However, only three are used all over the world because of their efficiency and reliability. The process of outward remittance states that the transactions can be done only through banking or building societies. The process of outward remittance does not encourage foreign exchange (FX) brokers or through high-end firms like the Western Union or Forex. As a general rule of thumb, the process of outward remittance states that banks are on the top because they are the safest ways to send money.

Coming in next are money transfer firms. Although incredibly fast, they are way more expensive, especially if the amount you are sending is a small one, than your normal banks. The process of outward remittance does not encourage this as well.

However, FX brokers are probably the best choice, if you do not want to go through the process of outward remittance if the amount you are sending is over 3000$.

Now, assuming that you have chosen your bank as a medium to get your money safely overseas, the next thing you need to think about is the mode of payment. There are many ways in the process of outward remittance to send your money. One way to process it is to get a Foreign Currency Demand Draft. This draft can be denominated in the desired foreign currency but must be drawn in favor of the person receiving it.

The countries already well versed in some form of money transfer system are the United States, Russia, Canada, The United Kingdom, Australia, Philippines and much more. They are so successful because they follow the process of outward remittance. India has recently started showing its capital prowess and has ventured into the online marketplace quite smoothly and is holding on its own. Other developing countries include Sri Lanka, some of the African countries, etc. These countries need to grasp the process of outward remittance.

While planning to carry out overseas money transfers, say from Australia to Philippines, you must be aware of certain terms, like what foreign exchange rates are and how the process of outward remittance helps it. In simple words, exchange rates are the value of one country’s currency as compared to another. For example, value of the Australian dollar is higher as compared to Philippine peso ( for money transfer procedures from Australia to Philippines ).

These are the basic things that you as a sender should keep in mind. Transferring …

Planning to buy a house, but not sure from where to start with?

 

Are you looking for a space of your own? Have you been planning to buy a house? And are you confused about where to start with so as to get a home for yourself? Then, you have landed up at the right place.

Buying yourself a home is one of the biggest decisions that you make in life. It is also a decision that involves a lot of money. Before you plan of buying a house you have to first plan how you would save a big enough amount that can help you buy a home. Even if you apply for a home loan, you would need some amount of saved money to start with or for the down payment of your home. Thankfully, you have mutual funds to your help.

An equity mutual fund can help you reach your financial goal faster by offering higher returns. In fact, if you start planning earlier, you can also think of buying a home worth Rs.1 crore in the next 5 years by accumulating enough money with SIPs (Systematic Investment Plans).

Buying a home may appear a very tedious, stressful and scary decision to make, it can be made simpler if you follow a step-by-step process to minimise risk. We are here to help everyone planning to buy themselves a house.

Decide Your Budget

Before running after a dream house or a fairy tale castle, it wold be wise if you sit calm and determine what you can actually afford. Buying a house is a big financial decision so fix a budget so that you do not take on a larger mortgage commitment than what you can actually afford.

It is advised that you should look for a home that is 2-3 times your annual income, not more than that. And do not ever use up your emergency funds to buy a home. You should always have some amount kept safe for urgent needs.

Making your money grow with mutual funds

When you are planning to buy a home for yourself ensure that your saved money is working hard to make itself grow so that you do not have to compromise on the house you want to purchase due to lack of funds. Mutual funds involving bonds or stocks or a combination of both can help you in planning your dream house. As they grow exponentially with the growth of the market, they intend to give you higher returns that make it easier for you to buy the house you would like to live in.

Home Loans that suit you

Once you finalise a budget for your home that you can easily meet without much hassles and stress. You should look for how much loan can you get from your bank. Bank might offer you greater loan than you have determined but don’t fall for that and stick to your budget.

Research Well

You are going to invest a large sum of money when you buy yourself a home so research is …