SBM Bank (India) Ltd. is the first institution to get a license from RBI in December 2018 to operate as a scheduled commercial bank in India, offering universal banking services through the wholly owned subsidiary route. It is a step-down subsidiary of SBM Holdings Ltd. (erstwhile State Bank of Mauritius), a listed entity in the Mauritius Stock Exchange, promoted by the Government of Mauritius.
For the NRI community across the globe, SBM Bank presents the Global Indian Programme. From world-class banking services to premium privileges and unique investment opportunities, get ready to experience the best the world has to offer.
SBM Bank offers customized financing solutions to meet your requirements. Avail SBM Bank NRI Financing Solutions like Home Loan and Loan Against Property. Be it a last minute investment decision or booking that coveted property on time, we ensure that you have funds when you need it most.
Enjoy attractive returns on your earnings through a range of our Fixed Deposits to suit your varied needs. SBM Bank has a number of NRI Fixed Deposits Options
Treat your money smartly from any part of the world. If you live abroad and want to make an NRI Saving account or an NRE saving account. Then don't worry SBM gives you the best Services at affordable rates.
We believe that you deserve the best no matter where you are in the world. From lifestyle privileges that help you live your best life to expert assistance in endeavours back home that may need your attention, we provide them with all, so that you can follow your dreams without any obstacles.
These are the global privileges provided by Sbm bank "you name it We have it" from nre Savings account, Nri savings account, nri home loan, Fcnr accounts, Fcnr deposits. We provide everything. Along with these services, we also provide Assistance and privileges.
Get the best returns from the Indian secondary market from any part of the world. The Indian secondary market awards profitable investment opportunities to grow your wealth. And you can earn money by sitting at any part of the world. SBM bank provides you with the opportunity to grow your wealth by investing in Indian stocks and bonds. They have the best NRE portfolio investment schemes(PIS) Where you can, you can buy and sell shares and debentures of Indian companies on a recognized stock exchange on a repatriable basis from your nre savings Account.
We aim to bring some of the new privileges and benefits to add to your enhanced lifestyle.
*Discover a world of privileges
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When it comes to SBM Private Wealth, a debit card is not just a replacement for cash or a tool for convenience. The benefits go way beyond.
The SBM World Debit Mastercard comes with a great collection of privileges and experiences that are handpicked to suit your pleasant tastes and lifestyle choices. From airport lounge access across the globe to exclusive experiences and curated brand offers, the Card has it all!
*Your SBM World Debit Mastercard entitles you to
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Unlimited Free Withdrawals at all Banks' ATM worldwide
1000+ Hotel & Travel Privileges for your comfort
200+ Global Dining & Lifestyle Experiences
Over Rs. 10,000 Welcome offers on Premium Brands
Zero Forex mark-up for international transactions
If you have an NRE savings account or an NRO savings account so you will definitely have a debit card and if it does not give you world-class privileges like this you must try out SBM bank.
Having our own house is a dream of everyone. However, fulfilling the dream to own a house is a tough task. That is why Sbm bank is here for Nri’s to help them fulfil their dream to own a house.
An NRI Housing Loan is a high-value loan, taken to facilitate the purchase or construction of a new home.
Whether you want to purchase a ready-to-move-in house, land to build your house, or a property under construction, the loan you would take is an NRI Housing Loan. SBM Bank India offers such loans and they are very secure. Although the buyer is needed to pay a down payment, and later he can repay the loan amount via monthly EMIs.
Be it for business expansion or crisis, children’s higher studies, medical treatment, wedding or an emergency Sbm bank provides NRI loan against property to NRIs at attractive interest rates with easy processing and necessary documents.
While you may be miles away, sending money to India should be as simple as a click. Whether you are sending money to loved ones back home, or for investments to grow your wealth, or buying that coveted property, the experience should be easy, seamless and a delight. And that’s exactly what SBM Remit offers - an online portal to send money to India securely in just a few clicks and a hassle-free process, at the most competitive rates.
SBM Bank does not only provide the best Online remittance services but also provides a wide variety of investment solutions, Nri Banking services such as NRE savings account and NRO savings account and also provides NRI housing loan.
Be it for personal expenses or business requirements, properties have been the most valuable tangible assets people own. And Home Loans or Loans Against Property (LAP) are the most commonly availed loans by people living in India and Non-Resident Indians (NRIs). The NRI Loan Against Property can be used for many purposes, unlike home loans- for business, renovation of your workplace or home, buying commercial property, for higher education, etc.
Things you need to know as an NRI, about NRI Loan against property
Each bank offers different interest rates, tenure, lending terms and conditions, repayment options, etc. with the NRI Loan Against Property. Following individuals can avail this loan:
Salaried individuals who are above 24 years age and are in permanent service at the time of loan commencement and up to the age of superannuation.
Self-employed business persons filing Income Tax Return (ITR) and are over 24 years of age at the time of loan commencement and up to 65 years at the time of maturity.
Self-employed professionals qualifying similar criteria as that of self-employed individuals.
Many factors are evaluated by the bank while sanctioning the loan:
Registration of the property kept as collateral
The market value of the property;
The requirement and eligibility of the applicant
Whether the individual is salaried or self-employed;
The applicant’s income;
Credit score —to assess the creditworthiness
The loan amount ranges between Rs 5 lakh to 5 crores, where the individual can avail according to his requirements.
Documents That You Will Need
There would be a list of documents which you would need to produce while applying for the NRI Loan Against Property.
Proof of identity (Aadhaar, voter id, passport, etc.)
Proof of address (Driving license, property tax receipt, electricity bill, etc.)
Date of Birth (birth certificate, passport, driving license, etc.)
Signature proof (Passport, banker’s verification, etc.)
Income proof; varies for salaried and self-employed individuals:
For Salaried candidates- Copies of 1) Passport showing the relevant visa stamps, 2) Work permit/work visa/any other relevant documents. Latest salary slips, or overseas bank account statements may also be required.
For Self-Employed candidates- Copies of 1) Your trade license/similar document, 2) 2 years Income Tax Returns, Computation of Total Income, Profit & Loss, Balance sheet with CA’s seal and sign. Copy of the passport showing relevant visa stamps and documents stating the nature of your business might also be needed.
Property documents and their copies.
SBM Bank offers hassle-free NRI Loan Against Property for a tenure of up to 20 years to salaried individuals and 15 years to self-employed individuals. You don’t need to worry about huge documentation or a lineup of calls and meetings to get your loan.
Visit the nearest branch or register online to apply for the loan. Get in touch with our customer care representatives for any queries or information.
Loans Against Property would help you in this time of economic emergency, and assist you in growing your business. Apply now for an NRI Loan against Property from SBM Bank!
Treat your money smartly from any part of the world
For the Global Indians who wish to park their overseas earnings in India, presenting an account that gives them the best of both worlds —SBM NRE Savings Account.
You've made your mark in the world with your flair, acumen and prowess. You’ve achieved success in faraway lands and made the country proud. But with a busy schedule and much to take care of, banking might be the last thing on your mind. We aim to offer you the best of banking and wealth management opportunities, together with the finest of privileges, to make your experience with us a delightful one.
With a personal lifestyle manager, a world-class debit card that complements your lifestyle, and a diverse range of investment solutions, experience the finest while staying connected to your homeland.
SBM NRE Savings Account
For the Global Indians who wish to park their overseas earnings in India, presenting an account that gives them the best of both worlds —SBM NRE Savings Account.
From providing for your loved ones to paying local bills, there will always be things to take care of the back home in India. With SBM Private Wealth NRE Savings Account, you can deposit your overseas earnings in India and earn lucrative returns while enjoying the finest banking privileges.
Whether it is taking care of your rent from property in India or dividends from your investments, you need an account to manage your money back home in India. With SBM Private Wealth NRO Savings Account, you can manage your earnings and expenses in India effortlessly while earning superior returns.
There will always be the business to attend to in India. Whether it is taking care of your rental or dividend earnings from India, or making local payments, you need an account that helps you manage your money from any part of the world, effortlessly. The SBM NRO Savings Account designed for the Global Indians enables you to do all that and more while earning superior returns and enjoying exclusive lifestyle privileges.
Benefits
Earn 6%* p.a. with a monthly payout of interests
Multiple Investment options to grow your local earnings
Preferential pricing on a host of products and services
Competitive forex rates
Premium privileges with Personal concierge
Dedicated Relationship Manager
The SBM NRO Savings Account can be opened jointly between two Non-Resident Indians or Persons of Indian Origin. Lucrative returns and a suite of premium privileges.
Individuals require loans for multiple purposes but end up getting confused between the options. Similar confusion arises when buyers use the terms NRI Housing Loan and NRI Loan Against Property (LAP) interchangeably, when in fact, both are completely different.
An NRI Housing Loan is a high-value loan, taken to facilitate the purchase or construction of a new home. Whereas, NRI Loan Against Property is taken by keeping an already owned/existing property as security. This loan might be used later for a variety of purposes. Now let’s see how both of these loans differ.
What is an NRI Housing Loan?
Whether you want to purchase a ready-to-move-in house, land to build your house, or a property under construction, the loan you would take is an NRI Housing Loan. Banks and housing finance companies offer such loans and they are very secure. Although the buyer is needed to pay a down payment, and later he can repay the loan amount via monthly EMIs.
What is an NRI Loan Against Property (LAP)?
LAP and housing loans have one thing in common, that is, both are secured. This is why they both are taken to be synonyms of each other.
However, a LAP is essentially a mortgage loan. The borrower can pledge his existing, self-owned property for a decided amount of money which equals a definite percent of the market value of the property that he owns. So he is required to handover the documents of that property to the lender until he repays the loan in EMIs.
How NRI Housing Loans Differs From NRI Loan Against Property (LAP)
Interest Rate: The NRI Home Loan Interest Rates are lower than NRI LAP Interest Rates. This is because of the Government of India’s (GOI) “affordable housing for all” initiative which focuses on making housing facilities affordable for every citizen of India. Also, the chances of defaulting on mortgage loans are comparatively higher than regular home loans. Thus, it minimized the margin requirement of a home loan.
Purpose: The NRI Housing Loans are typically applied to purchase a house, a plot, or a property under construction. Whereas, an NRI LAP allows the individual to mortgage his existing property in exchange for funds required for various reasons (personal or professional).
Loan to Value Ratio: Certain perks come with both loans. With NRI Housing Loan, you can get finance up to 90% of the value of your property. And for NRI Loan Against Property, you can get a maximum of 60% of the property value.
Tenure of the Loan: Yet another difference between home loans and LAPs is that the former is provided for longer tenures of 20 to 30 years, whereas the latter comes with a tenure of 15 years maximum.
Tax Exemption: LAP doesn’t let you avail any tax exemption, but home loans come with various provisions for the same as per Sec 80C and under Sec 24 of the Income Tax Act.
Hence, you might be able to understand now that both the loans are related to property but still are very different.
Financial setbacks come unexpectedly and end up delaying our plans. And it is less probable that people have the funds ready to keep their life on track. Hence, NRI Loan Against Property come to the rescue where you can keep your property as collateral and avail the funds you need. Also called mortgage loans, LAP is secured loans and gets accredited in brief times, these are taken into consideration as one in all the most dependable methods.
1. Calculate your loan amount as per your financial capability
The borrowers are advised to calculate their repayment capacity and not a larger amount. This can be done by calculation of the EMIs on the loan amount. However, many financial organizations provide 50% to 90% of the property value as the final LAP amount but your NRI Loan Against Property shouldn’t exceed 65% of your net income.
2. Go for a shorter loan repayment tenure
SBM Bank provides NRI Loans Against Property with a repayment period of up to 15 years. Choosing longer tenure seems a good option as it decreases the amount of EMI, but ultimately increases the payable interest. Hence, it is advised to keep your tenure shorter to release your property faster at the same time decreasing the payable interest.
3. Punctuality while paying EMIs
This is a very important rule; delay in EMI payment increases the overall cost of your borrowed amount. The late payment fees or penalties are charged on overdue EMI payments and your property comes under higher risk. Moreover, it might lead to mismanagement of your financial planning as the interest on the loan gets increased. It also affects your credit score which gets recorded in your credit report too. You can avoid all of this by being punctual in paying your EMIs.
4. Avail of insurance while borrowing larger amounts
LAPs or mortgage loans are assumed to be debts for the long term. And the higher the loan amount, the bigger the risk gets. Hence, it is strongly recommended to avail insurance to cover the borrowed amount in any case of an unfortunate event. These insurances come to aid in providing the required funds at the time of emergency to repay the loan EMIs and ultimately protecting the property from getting seized.
5. Always read the terms and conditions carefully
It is strongly advised to thoroughly check and evaluate the documents regarding NRI Loan Against Property as these are often lengthy and have extended terms and conditions mentioned regarding many details like processing fees, pre-payment charges, additional charges, etc.
Properly signed and filled application form
Income proof- includes the salary slips, Form 16n and statement of bank account (salaried applicants), bank statement, financial statement, and income tax returns, (for self-employed candidates)
KYC documents- ID, signature, address proof, and DOB proof
Documents related to the title of the property
A cheque for processing fees
Along with NRI Loans Against Property, these rules hold the same for NRI Housing Loan and the candidate must follow to avoid future complications.
NRIs who want to keep their India based earnings in India, usually hold either NRO or NRE accounts. These are fairly popular deposit options exclusively available to them which give them a good rate of return and place their funds in India. In this article, we will look at what NRE Fixed Deposit and NRO Fixed Deposit accounts are and how they are different from each other.
NRE Account- NRE is an acronym for the Non-Resident Rupee/External account. An NRE Fixed Deposit Account is where the Indian residing overseas makes deposits from there and sends the same in an Indian account. The money after reaching gets converted into Indian currency (Rupees).
NRO Account:- An NRO Savings account is a Non-Resident Ordinary Rupee Account, usually opened by an NRI to manage the income in any form (like rent, pension or other types of dividends) that is earned in India.
1. Tax Exemption
The interests earned from NRO fixed deposits and credit balances are taxable at a rate that is higher than the domestic FD tax rates. Wealth and gift taxes are also applicable to such interests.
The interests earned from NRE fixed deposits are not taxable; hence, they are completely tax-free.
2. Repatriability or Transferability
Individuals with NRO FDs are not allowed to transfer the principal investment; only the interest earned (net of applicable taxes in the financial year) can be transferred to a foreign account.
NRE fixed deposit allow full repatriation of funds including both principal amounts and earned interests to the foreign accounts.
3. Joint accounts
An NRO account can be opened jointly with an NRI as well as an Indian resident. NRE fixed deposits can be opened jointly with another NRI but not with an Indian resident.
4. Deposits and Withdrawals
An NRI can only deposit funds in NRO account if they are originating in India, and ultimately in his/her NRO fixed deposit. Hence, transferring funds from abroad for the same is also not allowed.
However, the transfer of funds from the NRE account to the NRO account for the same is allowed.
Although, you cannot open NRE fixed deposits by transferring currency from an NRO account.
Regardless of the deposition, all withdrawals can only be done in Indian currency.
5. Interest Rates
Although the rates of interest may vary for NRE and NRO FD accounts according to the banks, usually, they are offered with maturity between 1–20 years.
6. Proneness to Exchange Rate Fluctuations
The NRE FD Accounts are prone to the risk of conversion loss and exchange rate fluctuations regarding the value of Rupee against the foreign currency. However, there are no such risks involved with NRO FD accounts.
There is no “better” option when you’re going to choose from these accounts. You can go for an NRO FD or an NRO deposit account as per your need, keeping in mind if you want to park your foreign earnings in an Indian account or park the funds earned from India.
The pace at which some of the banks and shadow lending firms have gone burst in recent years has completely shaken the faith of many depositors and savings account customers. Their hard-earned money has simply vanished in thin air, leaving them at the mercy of the RBI or seek government intervention for some monetary help.
In October last year, several depositors and customers lost their money after PMC bank went bust. Even as the common man was yet to come to terms post the debacle of PMC, another bank, this time a much bigger private lending firm (Yes Bank) was on the brink, leaving its customers in total disarray. While RBI’s timely intervention to bail out Yes Bank did provide some hope to the customers, the fact that many banks facing the financial stress in a tough business environment has left customers in a quandary about the safety of their funds in banks.
While the sudden announcement of the closure of a bank comes as a rude shock to many, there are several indicators a customer can look for to know whether a bank is in trouble. Here are some of the key warning signs that customers need to look at to avoid being in a spot.
In today’s scenario most of the big financial firms, be it banks or NBFCs, are neck-deep in trouble because of the mounting non-performing loans, or NPAs, on their books accumulated over the past few years. A key metric that a bank customer needs to look at, it is a bank’s gross & net non-performing assets, which shows what percentage of bank’s loans are in danger of not being repaid.
This signifies that the bank’s asset quality is poor due to a very high gross NPA ratio. Similarly, net NPA indicates the health of the bank. Net NPA indicates that portion of bad loans which the bank doesn’t provide for in the books. If your bank’s net NPAs exceed 5%, it indicates bad lending practices.
Next is the provisioning coverage ratio (PCR) that customers need to check in a bank. If a bank has a high PCR, it indicates that most asset quality issues have been addressed. Similarly, if the bank has provided less for its bad loans, it is vulnerable to more shocks going ahead.
Another important aspect is the capital adequacy ratio (CAR) of the banks. CAR is the ratio of a bank’s capital concerning its risk-weighted assets and current liabilities. A higher CAR shows that a bank is well capitalised and vice-versa in case of lower CAR. Also, one should keep an eye on the Current Account Savings Account (CASA) ratio. A lower CASA ratio indicates that the bank relies on costlier institutional borrowings to fund its operations. The credit-deposit ratio of a bank is another indicator you can track. A higher credit-deposit ratio suggests an overstretched balance sheet, and may also hint at capital adequacy issues. Other important metrics one needs to check are the bank’s
Credit-deposit ratio, Net interest margin, and Return on assets.
One should be keeping an eye on the key developments. Supposedly, if a bank delays its earnings announcement or the auditor of a bank has resigned or makes an adverse comment, then one should try to find out reasons for the same. Also, the exit of key managerial personnel could be a signal of trouble brewing within the bank. Besides, one should also monitor any rating downgrades by credit rating agencies. These are some parameters that bank customers should monitor regularly to avoid a shock later. You can be cautious by choosing the right bank or a globalised bank that is a better solution and they are stable enough and your deposits are also safe.
Crisis period comes and go, but as an investor, you stare at huge losses, especially, if the portfolio is not well spread out and is restricted to a particular asset class. Even if the economic health remains hunky-dory for a few years, one should always be wary of the impending crisis that may emerge in any form and any time and completely shake the optimism.
Take for instance the current scenario, where the outbreak of coronavirus pandemic has not just roiled the world equity markets but also dragged the commodity and bullion prices sharply. One should stay calm and not get perturbed in such situations and spot opportunities and invest in different asset classes that will fetch decent returns once the market revives.
Here are some quick tips to keep in mind and use investment intelligence to invest in different asset classes and to build a diversified portfolio.
1) Invest in companies with low risk
While the economic activity has come to a standstill due to fast-spreading coronavirus threat, one should avoid investing in companies that are highly leveraged or speculative. The focus should be on finding companies with good cash flow and low debt for the safest investment options. And as a general guideline, try not to take any major risks at an already uncertain time.
2) Invest in Companies providing essential commodities
After the carnage on Dalal Street, most of the sectoral stocks are now available at lip-smacking valuations. But one should be aware that economists are already predicting a severe slowdown and a likely global recession going ahead, which could hurt the investment sentiment. Hence, it’s a good idea to focus on consumer staples or essential items that people will need (and buy) regardless of their financial situation. They typically include food, beverages — including alcohol — certain household goods and tobacco.
3) Invest in Non-cyclical Industries
In times of uncertainty, it’s best to focus on finding non-cyclical industries offering goods and services that are in constant, year-round demand. In addition to the consumer staples mentioned above, these recession-resistant industries include grocery stores, discount stores, alcohol manufacturers, and cosmetics.
4) Diversify your investment
Always believe in the old saying, do not put all your eggs in a single basket. Diversifying across industries will protect you from greater losses if a particular product or industry loses value. Equally important is diversification across asset classes, e.g., equities, in addition to fixed income and commodities. Several fixed income products of good mutual funds tend to do well because of diversification into government bonds, commercial papers, etc. Commodities like crude prices are currently ruling at multi-year lows, but improvement in demand scenario and better economic growth prospects will lift sentiment.
5) Invest in companies providing good Dividend
Place your bet on listed companies that has a history of declaring a good dividend. Dividend stocks create a passive income. It’s generally recommended to look for companies that have low debt-to-equity ratios. To be on a safer side, focus only on fully reliable companies, i.e. those that have increased their dividend payouts for at least 25 consecutive years.
6) Invest in bullion
It has been seen in the past that investing in precious metals, particularly gold, during uncertain times has fetched better returns due to investors appetite for safe-haven assets. Recently, while gold prices also took a beating along with other asset classes, experts believe that prices of yellow will bounce back soon. Investors can choose to invest in gold through Exchange Traded Funds (ETFs) by not physically owning it.
7) Invest in deposits
Having a fixed source of income is essential that why you should also invest in Fixed deposits, it is safe and gives you a stable income. Because even if all other investment’s fail, you will still have some money if you have invested in Deposits.
And if you are a Nri and want to invest in India then You should definitely open a nri saving account or a nre savings account then this is the right time for it. As it will help you to invest in Less risky stocks, and also gives you the opportunities to invest in bullion.
These were some of the different asset classes which you could invest in so before investing keep these asset classes in mind.
Being an NRI or Non-resident Indian you might worry regarding your investments and savings in India. SBM Bank understands your needs and offers NRI savings accounts to suit your requirements and convenience while you’re living abroad.
NRIs are allowed to open NRE and NRO accounts, either savings or fixed deposit accounts, as per their wish. However, since you’re living outside India, it is obvious that you will find it difficult to visit the bank in India to complete the account opening formalities. Here’s where SBM Bank comes to the scene and offers you a simple way to open your NRE or NRO savings accounts just by sitting at home.
Though both these accounts are specially catered to NRIs, NRE (Non-Resident External) accounts and NRO (Non-Resident Ordinary) accounts differ in many ways from each other. Like in NRE savings account, you cannot deposit your earnings in Indian currency, but in NRO savings account, you can. You are also allowed to transfer funds from your NRE account to an NRO account. The NRE savings account interest rates vary with that of an NRO account. Only interest generated income can be transferred in NRO but principal and interest both can be transferred in NRE.
SBM Bank offers an exclusive range of benefits with their NRI savings accounts for your comfort and hassle-free banking. You just have to follow these steps and apply for an NRI account online through their website: https://www.sbmbank.co.in/global_indian/accounts.php
1) Download the form to open a Nri savings account
If you’re in India, you can visit the branch and obtain the hardcopy of the form. Otherwise, you can visit their website mentioned above, and download the form shown above. Fill it up and submit. There is also the option of filling the form online.
2) Upload all the necessary documents necessary for NRI savings account
Just like other accounts, the opening of NRI savings accounts also requires certain documents to be produced/uploaded along with the application form. These include: approved proof of identity, proof of NRI or PIO status (through passport with a valid visa or PIO card), approved proof of address, and payment instrument for initial contribution.
3) Attestation of all the necessary documents
You would also be required to get these documents attested by either the Indian Embassy or Notary or by a Banker overseas in your country. Some banks also allow additional proofs which are self-attested.
4) Additional KYC along with the documents
Your bank might require you to fill an additional KYC format to disclose tax residency status and related details. For this, you might need to provide them with additional proofs and documents.
5) Dispatch an attested copy of your documents
If you can dispatch the form along with the mentioned documents to the bank branch, that would be the final step. Otherwise, you can also drop your application in a post box with the PO Box number if provided by your bank.
While opening any of the NRI savings accounts, remember that account opening usually takes time it is done without meeting the NRI face-to-face. You can always reach your bank for any assistance regarding account opening formalities through their NRI helplines.
If you’re moving to a foreign country and are worried about managing your banking services in India, then SBM Bank has got your back. They offer a wide range of NRI banking services which cover everything from banking to investment to loan.
SBM Bank aims to offer convenient and rewarding investment schemes and products to its customers whether you are in India or anywhere else. They offer attractive interest rates and world-class privileges on their deposits and accounts, along with 24*7 strong customer support and hassle-free management.
NRI savings account
SBM Bank offers NRIs the best options for banking and wealth management opportunities so that they can work stress-free while SBM takes care of their banking needs.
With SBM NRE Savings Account, you get to deposit your funds and get free access to them in INR and earn profitable returns. Or, you can also convert the same funds into the currency of your resident country and repatriate it any time you want.
SBM NRO Savings Account lets you manage your earnings and expenses in India effortlessly while working abroad and accessing your funds in INR.
NRI fixed deposit
NRIs can enjoy attractive returns while opening their fixed deposit accounts with SBM Bank.
You can open an NRE Fixed Deposit Account jointly with other NRIs and/or Persons of Indian Origin (PIOs). The principal and interest amounts are completely repatriable, while the interest amount being non-taxable.
NRO Fixed Deposit Account is an ideal investment option if you want to keep your earnings arising in India safely. It can be opened jointly only with residents of India.
NRI Financing Solutions
SBM Bank also offers customized financing solutions to help you invest effectively to gain maximum funds and benefits.
NRI housing loan
Buying a property in India being an NRI used to be a tough decision, but no more, as SBM Bank offers Nri Housing Loans with hassle-free processing, end-to-end assistance and best-in-class interest rates. The benefits you get are attractive interest rates, convenient repayment options, flexible tenure, quick loan processing, easy balance transfer/top-up loan, and available for ready or under construction property.
NRI loan against property
SBM Bank understands the value of money when you require it the most for personal or business-related concerns like business expansion, higher studies, wedding or medical treatment. It becomes easy to get your funds with minimal documentation when you apply for Nri Loan Against Property at SBM bank.
Avail your much-needed funds by simply keeping your commercial or residential property as collateral, while continuing to retain its ownership. Also, get up to 65% of your property’s value along with other benefits, like quick and easy approval, affordable interest rates, extended tenure up to 15 years, flexible repayment options, no-prepayment penalties, and overdraft facilities.
Whether property-related concerns, deposition of funds or accessing your funds through a savings account, SBM Bank has vast options for NRIs and aims to decrease their worries while increasing income opportunities.
NRIs (Non-Resident Indians) who want to keep their India based earnings in India, usually hold either NRE or NRO savings accounts. These are fairly popular deposit options exclusively available to them which give them a good rate of return and place their funds in India.
An NRO savings account is a Non-Resident Ordinary Rupee Account, usually opened by an NRI to manage the income in any form (like rent, pension or other types of dividends) that is earned in India. Hence, such an account helps them in two ways: they can send their earned money to India from the resident country, and retain their income earned through other assets in India.
How to open an NRO savings account
The candidate (here, NRI) has got two options to open his NRO savings account:
He/she can either convert his/her existing resident account in India to NRO account,
Or he/she can open a new NRO account. These options would require the candidate to submit the documentary proof of being a non-resident account holder in India.
Required Documents
In case of the first option, i.e. conversion of existing resident account to NRO savings account, the candidate would require to fill a form and get it signed by all account holders. The document required would be proofs of- identity, NRI status, foreign address and two photographs.
In case the second option, i.e. opening a new NRO savings account, same KYC documents would need to be submitted along with duly filled new account opening form.
A point to note is that the proof of foreign address can be presented in four forms, either employment detail, or student status, or dependent visa status, or a copy of the resident permit in the overseas destination. Before submitting, the candidate would need to get these proofs attested by either the Indian embassy or notary or branch of an Indian bank also having its branch overseas.
Transaction proof
It is a mandatory step for banks, so the candidates can provide proof of their financial transactions abroad. It can either be in the form of a cheque drawn on an overseas account or a credit card statement not more than six months old.
Opening NRO savings account
In case of conversion of existing resident account to NRO account, the existing savings account will only be converted to an NRO account once the documents are received and verified by the bank. However, the bank might charge some amount for this conversion.
Just like other accounts, new NRO savings account open shortly after the bank receives all the documents along with the initial amount.
Additional information
FCNR Account have become a popular tool for investment for NRIs in India, especially after the Union Budget 2019. The revised interest rates and merging of foreign portfolio investments (FPI) with NRI portfolio investments have made these accounts the topmost investment options for NRIs.
What is the FCNR Account?
FCNR is an acronym for Foreign Currency Non-Resident (FCNR) bank (B) account, which is a term deposit account that allows the Non-Resident Indian (NRI) or a Person of Indian Origin (PIO) to transfer their foreign income to India in the same currency in which they are earning. This protects them against exchange rate risks.
Features of FCNR account
FCNR is a foreign currency-denominated account, where you can invest in your resident currency.
FCNR deposit accounts are not a savings account and have a minimum tenure of 1 year and a maximum of 5 years.
No need to pay income tax on interests earned from FCNR accounts.
Both principal and interest are freely repatriable in your resident country.
Both corporate and non-corporate clients can avail rupee and foreign currency loans against their FCNR deposits anywhere in the world.
Joint accounts can be opened with fellow NRIs or close Indian relatives.
Currencies and schemes under FCNR account
FCNR permits freely convertible currencies, including US Dollar, Pound Sterling, Euro, Japanese Yen, Canadian Dollar, Australian Dollar, Swiss Franc, Singapore Dollar, Danish Krone, and Hong Kong Dollar among others, as mentioned in the latest RBI circular of October 2011.
The FCNR interest rates vary with the bank and the tenure of the deposit. For USD, the minimum rates can be 1.3% for GBP and a maximum of 3%.
Disadvantages of FCNR account
Your FCNR fixed deposits can be of 1 - 5 years tenure only, and you may not earn any interest if you close your account before completion of the first year.
The banks may become unable to repay your funds in case of a financial emergency or recession.
Opening an FCNR account
There are three ways:
Either by sending remittance from overseas
Or by internet banking (if you have NRE/ NRO accounts)
Or by submitting a request to SBM Bank branch
You will require the following documents for the same:
Through cheques or wire transfer directly from your bank overseas.
From another account (NRE/FCNR).
When in India, the proceeds from Travelers Cheques would work; but if your amount exceeds USD 5,000, you’ll need to get a currency declaration form.
FCNR accounts are a lucrative and legitimate option if you want to invest your earnings in India. Keep these points in mind while you’re going for it to get a tax-free return while living in a foreign country.
One of the many benefits of having an NRO (Non-Resident Ordinary) account for NRIs is that they don’t need to close or terminate their existing savings account to open a new one. Now, you can simply convert the resident savings account into an NRO savings account and deposit your savings or earnings from investments, rents, etc. in Indian currency.
If you are shifting abroad and have a savings account in India, you are required to change it to NRO savings account as per the laws, otherwise, you may have to pay penalties.
To carry out this conversion, the candidates need to go through the following formalities:
First of all, inform your bank where you hold your resident savings account that you wish to convert it into an NRO savings account, as you have shifted abroad.
Banks endorse specific forms for such account transformations, which can be procured from the branch or downloaded from their website. If you have more than one account in that bank, only one form can be used to convert all of them against the same customer ID.
You would also need a new account opening form along with the above form, with supporting documents like the address proof of the overseas address, copies of passport, valid visa or work permit, KYC details and OCI/PIO card (if applicable).
Keep in mind that if your savings account in consideration is a zero-balance account, it needs to be funded with the minimum balance before you can convert it into NRO.
The previously mentioned documents must be submitted to the bank office. On the off chance that you have just moved abroad, you can get them confirmed by the Indian Embassy and afterwards send them to the branch.
Once the bank receives and verifies the form and documents, your savings account is renamed as an NRO savings account. It won’t change the account number but will be mentioned as an NRO account in the bank records.
Documents Required
Identity proof - Passport, Aadhaar card, Voter ID, Driver’s license, etc.
Proof of NRI status - Valid visa, work permit, OCI/PIO card, etc.
Foreign address proof - Utility bills, telephone address, etc.
Latest passport size photographs.
Points to note while converting to NRO savings account
The bank may levy some charges for converting your account to NRO savings account.
A few banks likewise offer a PO box facility for their customers living abroad so that they can drop off their forms and documents for processing.
All money earned in India can be deposited in the NRO account in Indian currency.
SBM Bank India allows its customers to convert their residential savings accounts to NRO savings accounts in a hassle-free and quick way. Now you can deposit money in Indian currency (INR) and get access to 24/7 internet banking facilities and other premium services when you open an account with SBM Bank.
FCNR Accounts have become a popular tool for investment for NRIs in India. With the coming of Union Budget 2019, many regulatory changes have taken place. The interest rates have been revised and merger of NRI portfolio investments with foreign portfolio investments (FPI) has been proposed. This will encourage expanded NRI investments in equities and bank accounts with guaranteed returns.
FCNR Account- What it is?
FCNR is an acronym for Foreign Currency Non-Resident (FCNR) bank account, which is a term deposit account that allows the Non-Resident Indian (NRI) or a Person of Indian Origin (PIO) to transfer their foreign income to India in the same currency in which they are earning. This secures them against the exchange rate prospects.
It is a rewarding choice for NRIs to attract foreign money. In any case, the interest rates offered by these accounts may fluctuate contingent upon the type of currency held and the bank.
Features of an FCNR account
FCNR Account - Advantages
*FCNR Account - Disadvantages *
FCNR accounts are legitimate alternatives if you, being an NRI, want to invest your earnings in India since there is no exchange rate risk involved, and is non-taxable.
