Privileges and Assistance

As per the taxation policies in India, the NRIs get similar tax benefits just like the residents of India. All the tax benefits are identical for them associated with the interest and principal repayment aspects. For housing loans, it is essential for NRIs to have an income source which is taxable in India.

There are select legal acts under which it is provisioned for the NRIs to claim tax deductions for housing loans such as Section 80EE, 80C and 24 under the Income Tax Act. In this article, you will get to know about some of the tax benefits for NRI housing loans in India.

Most Commendable tax benefits for NRI Housing Loan

Most of the banks and financial institutions in India are readily offering home loans for NRIs. But as per the select criteria, the tenure of home loan repayment might vary, and The interest rate is usually high for such loan candidates.

However, there are loads of tax benefits. These include:

1. Tax Deduction On Registration, Stamp Duty & Principal Repayment
Under the Section 80C of Income Tax Act, it is legal for the NRIs to claim tax deductions for home loans. The tax deductions are meant to be claimed for principal repayment, property
purchase cost, stamp duty and registration charges.
In India, the maximum deductions that are possible for NRIs are up to INR.15,000,00. However, the NRIs have to abide by the rules that they cannot sell the house or property
within the next five years.

2. Deduction on Repayment of Interest
Under section 24 of the Income Tax Act, an NRI can claim a tax deduction on the interest repayments on EMI. There is a maximum limit of deduction that one can claim which is Rs.
200,000 per year. This plan is for a self-occupied house owned by NRI.

3. Additional Deductions for First-Time Buyers
If an NRI is seeking a loan to buy their first home; then they are liable to claim tax deduction of Rs.50,000 on interest repayments every year. This benefit is under Section 80EE. The
condition is that the loan amount must be less than Rs. 35 lakhs, while the total property cost must be less than Rs. 50 lakhs.

4. Joint Home Loan Tax Benefits
In the case, where an NRI and his wife are willing to take a joint home loan, the wife can also claim for tax deductions separately. In this case, when you take a joint loan, you become the owner of the property while your wife or partner will be co-owner. Both can individually claim the tax benefits under Section 80C of the Income Tax Act. The tax deduction is permissible on the principal loan amount for a maximum of Rs. 150,000 each.

5. Additional Perks under Section 24
Section 24 also supports deduction claims for interest repayment on home loans for NRIs, even when it is under the pre-construction phase.

These were few of the tax benefits for the NRIs who wish to seek a home loan for buying a house or property in India. Reach out to the best banks or financial institutions such as SBM
Bank, they can help you out with the needful services and information.

NRI accounts can be opened by Non-Resident Indian who reside outside the geographic territory of India. This account facilitates account holders to manage transactions in the currency of their country of residence.

There are types of NRI saving account one can opt to open:
NRE Account
NRO Account

NRE Account:

NRE (Non-Resident External) account is accessible to deposit overseas savings as rupee dominated. It is an account opened in India in the name of NRI. One can open a joint account between two Non-Resident Indians or a Person of Indian Origin with the SBM NRE savings account.

Benefits of NRE account:
Interest 6% p.a. with monthly payout of interest
Tax-free returns
Fully repatriable
Competitive forex rates
Dedicated Relationship manager
Preferential pricing on a host of products and service
Premium privileges with Personal concierge

NRO Account:

NRO (Non-Resident Ordinary Rupee) is an account opened in India by the name of NRI to manage the income earned in India. That earning can be a dividend, pension, rent, etc.
One can open an account jointly between two Non-Resident Indians or a Person of Indian Origin with the SBM NRO savings account.

Benefits of NRO Account:
Earn 6% p.a. with monthly payout of interest
Multiple investment options to grow your local earnings
Competitive forex rates
Dedicated Relationship manager
Preferential pricing on a host of products and service
Premium privileges with Personal concierge

Thus both types of NRI saving Account have their own benefits.

Enjoy High returns on your earnings through a variety of our Fixed Deposits to suit your varied needs.

If you want safe returns on your investments to boost your savings then investing in a variety of fixed deposits provided by SBM bank, if you want to freely repatriate your money and also want high returns you can invest in NRE account fixed deposit if you want to save money for your future and planning to come back to India you can choose NRO FD for NRI fixed deposit. If you want to invest your money in foreign currency you can choose FCNR deposit.

SBM bank has a variety of fixed deposits

NRE Deposit

Invest your foreign earnings in India and enjoy lucrative returns with SBM NRE Deposit.
Attractive interest rates with quarterly compounding
NRE account fixed deposits have flexible tenure and tax-free returns
NRE account interest rates are fully and freely repatriable (both principal and interest)

NRO Deposit

Invest your Indian rupee earnings and enjoy attractive returns with SBM NRO Deposit.
Attractive NRO fd rates with quarterly compounding
Flexible tenure of nro fd
Interest fully repatriable after payment of taxes
Can be jointly opened by NRIs/PIOs and Resident Indians

NRI Superia Deposit

Amplify your wealth with guaranteed higher returns on SBM NRI fixed Deposit, which is available in multiple currencies.
Guaranteed higher returns than NRE/FCNR Deposit
Tax-free returns in India and freely repatriable
Multiple currencies & tenures
Simplified documentation

FCNR Deposit

Park your foreign earnings from anywhere in the world to FCNR deposit (Foreign Currency Non-Resident deposits) in India in the currency of your choice and enjoy attractive tax-free returns.
Protection from exchange rate risk
Tax-free interest & principal
Fully and freely repatriable (both principal and interest)
Flexible tenure
visit us at :-
https://www.sbmbank.co.in/global_indian/deposits.php

NRIs are willing to invest in India after possessing a modest amount of income in abroad countries. There is an easy and efficient process of investment in India for the NRIs as the returns are high. RBI has proposed special investment schemes for NRIs to promote more investments from their end. But still, the NRIs need to be aware of the essential factors before they can go ahead and invest in India.

In this article, you will know about some of the investing tips for NRIs that one must keep in mind to make better decisions while investing in India.

Look For The Ideal Investment Method
You must look for the options available for NRIs to invest in India. There are numerous banks and financial institutions such as SBM Banks, HDFC, IDFC and others who are keen to provide investment options for the NRI finances. Some of such options include mutual funds, real estate, equity market and many more. Real estate, mutual funds and equity market are the most popular investment options in India.

NRIs can go ahead with an ideal option that meets their requirements. Get in touch with the bank consultants to get detailed information on each option. Mutual funds and equity markets are the safest places to invest in India for the long term.

Know About Government Securities

When you are planning to opt for investment solutions in India, analysing the government securities might be a necessity. The securities are processed by the government under RBI. By knowing about the securities, you will be suppressing the risk factors. Depending upon the NRI investments, they can gain access to several types of government securities.

Get Idea on Tax Benefits

The income of Indians is taxable if it is from the Indian resources. Therefore, they get the accessibility to claim tax deductions in India for their investments. For instance, if an NRI has invested in mutual funds and has more than 65% of equity assets, dividends are meant to be free from tax. The tax provisions are quite flexible for NRIs when they seek investment options in India.

Array Of Deposit Accounts

NRIs get the flexibility of opening different types of deposit accounts in India. One amongst those options is an NRE account which is not taxable on earnings form NRE Deposits. With this type of account, the NRIs can make their deposits from other countries, and it will reflect in the account of India.

The second type of deposit account is NRO deposits that are fully taxable. You can also open a joint NRO account with an Indian resident. NRIs earning from Indian resources can deposit the same in this account.

Power of Attorney (PoA) Holder

Having a Power of Attorney holder for your account will help you make better decisions and offer portfolio management services for your account. An NRI must hand over the POA to a trustworthy person to look after the investment account in his/her absence.

Conclusion

These are few of the investment tips for NRIs that you need to keep in mind if you are planning to invest in India. Being an NRI, you are not deprived of any investment facility in the nation. You must reach out to the right banks or financial institutions to know more about it.

Money Transfer Tips for NRIs Living Abroad

One of the most critical challenges that NRIs face over time is to manage their accounts and finances while they are abroad. They need to adopt some special measures to make the money transfer aspects smooth from abroad to Indian accounts.

For keeping it secure and safer, NRIs try looking for all their available options. The banks and financial institutions can be the first point of contact to let the NRIs know about their available options.

To help NRIs learn about their safe and secure money transfer process, here are some of the money transfer tips for NRIs that they must keep in mind.

Create NRE & NRO Savings Accounts On Priority

An NRI must open NRO Savings account or NRE savings account in India on priority. These accounts will help the NRIs credit their abroad income into Indian accounts. Not just that but they can also credit the income that they get from Indian resources into NRO Savings accounts.

The Indian income resources can be from local salaries, investment returns or rent collections. If you have an NRO & NRE account you can also opt for online remittance services to transfer money to your loved ones residing in India.

Evaluate The Fund Transfer Exchange Rate Trend

The NRIs usually face problems while they plan on sending money back to India. They need to check on the exchange rate trend and compare the money transfer service facilities available. The exchange rate varies from time to time; therefore, impulsive moves can result in adversities. Therefore, this tip is essential to consider for ensuring safe and planned money transfers to India.

Seek PPF NRI Accounts

Provident Fund benefits are meant not just for the Indian residents but are also the same for the NRIs. People can get their PPF accounts subscribed for NRI needs before heading out of India. The maturity of the PPF accounts is 15 years and is a perfect long term investment option for the NRIs. This account needs to be maintained throughout its tenure for a better profitable outcome.

Know About The Risks Involved In Overseas Transactions

For a smooth transfer of money from an abroad account to Indian account, you need to understand the risks and objectives associated with it. You can get in touch with some top banks and financial institutions to get detailed insight about overseas transactions and the risks associated with it. Knowing about all the financial opportunities will help you ensure safe returns.

These are few of the money transfer tips for NRIs that you must keep in mind while you are expecting seamless money transfers from abroad countries to Indian accounts. With the right assistance and information, transferring money from abroad accounts to Indian accounts can be more seamless.

Get in touch with the best banks of India such as SBM, DCB, IDFC or others, to know more about the NRI account schemes and policies meant for allowing NRIs to leverage the banking benefits just like any other Indian resident.

Non-Resident Indians who are keen to invest in the Indian stock markets can now get it done seamlessly. There are few ways by which they can handle the procedure and paperwork essential for the same.

These efficient ways allow NRIs to make their investment in the stock markets of India efficiently. In this article, We've shared some effective ideas for NRI investment in India.

Make use of a Mandate Holder

If you opt for portfolio investment services Investment, Then having a mandate holder is the best assistant to operate the NRE accounts. All the NRI investors can seek to appoint a mandate holder to take care of their wealth.

The respective appointment is to be signed by obtaining the form from the bank. KYC documents are a must to verify the credentials of NRI. The mandate holder will also sign the form for proceeding with the registration process.

Now, the mandate holders can issue cheques, draw cheques, handle payments, and use the cards on behalf of NRI. There are banks and financial institutions that are offering such services to the NRIs. Even though the mandates handle the transactions, NRIs can set a debit limit on the account to ensure peace of mind.

Issue Power of Attorney to the Authorized Person

It might be difficult for NRIs to keep track of the market movements and individual money. Therefore, giving the POA to the holders can lead to better decision-making. After you have signed a power of attorney, a copy of the POA is to be submitted to the fund house by the POA holder.

With the signature and consent of the NRI and holder, the POA will be processed. From then onwards, every transaction will be processed on verification of the POA’s signature. NRIs can also make their Indian resident family members their nominee.

Online Investment Portals

When it is about investment, not all NRIs are comfortable handing over the authority to someone else. Even though the banks or financial institutions are trusted and registered, they still want to handle the investments on their own.

Therefore, it is also possible for them to carry out transactions through online trading portals. There are many broker trading portals available over online platforms, especially for NRI investors. For NRI investment in India, one can do the registration for trading accounts with brokers and go ahead with managing their investments from the portal.

For investing through online portals, the NRIs need to note the time zones to ensure smooth transactions without much hassle.

These are a few of the ways using which the NRIs can invest in the Indian Stock Market. But they need to get in touch with the professionals to understand the important considerations and tax liabilities to make the process more seamless and smooth.

So, if you are an NRI and are looking for ways to invest in Indian Securities or Stock Market; Reach out to the respective banks or financial institutions such as SBM Banking services, that can help you with appropriate NRI investment solutions.

The COVID-19 pandemic arrived with not only a health crisis but also an economic one across the globe. Many companies and organizations are announcing pay cuts, deferred payments, and are even laying off employees. Many countries are even sending the migrants back to their home countries. NRI’s returning to India may face a bigger problem in the future. However, taking a wise investment decision can help you in the long run.
The economy has seen the worst hit this year, leaving everyone puzzled and confused on how to save and where to spend. In such a situation, it becomes necessary to consider investing in productive avenues to prevent the pandemic from hitting your financial stability.
Here are a few points to keep in mind while investing during COVID-19:
1. Holding Cash
Saving money while in the COVID-19 economy is a wise decision as it can come in handy at the time of need. However, it is suggested that you park your saved money in separate bank accounts and/or Liquid or Overnight Funds and don’t use it until there is an emergency.
If you are an NRI, then you must hold your money in excess for future use. Due to the Economic crisis you never if you ever get a chance to go back to the country you were residing in.
What you should remember while holding cash is that you don’t keep excess of it or very less of it. Inadequate cash won’t suffice in urgent times and holding excess cash may lead you to miss out on good investment opportunities.
2. Asset Allocation
Many factors determine asset allocation or distribution of investible funds among asset classes- equity, debt, gold, or holding cash. Factors include your income, age, financial goals, investment objectives, and time in hand. Since time is crucial, it would be a good idea to review your asset allocation now as these factors might have changed with time. Investing in safe options can be preferable in the long run. As investment options such as equity and debts can be risky options to invest in. However, investing in Fixed deposits can be preferable. As your money is safe and gives you good returns. And if you are an NRI, then investing in NRI fixed deposit can be the best option for you. It gives you various options; Such as FCNR deposit, NRO Fixed Deposit, NRE Account fixed deposit, and much more.
The biggest benefit of Fixed deposits for NRI’s is the Repartriability of their deposits. You can invest in Foreign currency and get good returns on your investment. You can also repatriate your Investment without paying any taxes if you invest in an NRE account fixed deposit or FCNR account.
However, in this time of economic uncertainty due to COVID-19, you must invest only after thorough research. Also, try not to over-diversify, else it will make your portfolio bulky and won’t add any benefit.
3. Stay Invested
During COVID-19, it might seem that terminating your investments is a good idea as they would offer financial relief. But it isn’t at all a good idea, especially for certain asset classes such as equity and gold. Such avenues need a longer investment horizon to give considerable returns.
Selling them might seem like a quick solution but it might jeopardize your financial wellbeing in the long run. Therefore, it is recommended that you continue with your investments in mutual funds and stocks and even increase your allocation.
4. Insurance
The most common step taken by people during COVID-19 is getting their life and health insurance done. Many upcoming insurance plans offer cover for corona infection. Opting for them is a good way to protect the well-being of your family and you.
Continue your insurance premiums; take it as an essential investment so that you and your family can enjoy uninterrupted insurance coverage. You might think of stopping your payments towards insurance premiums during this economic crisis. But you shouldn’t do that since you’ll most likely have to pay a higher premium if you think of buying an insurance policy later.
Conclusion
During the COVID-19 crisis, you must take the right steps to stay healthy and financially fit. Taking adequate precautions and measures as recommended above would help you manage your finances better.

Enjoy High returns on your earnings through a variety of our Fixed Deposits to suit your varied needs.

If you want safe returns on your investments to boost your savings then investing in a variety of fixed deposits provided by SBM bank, if you want to freely repatriate your money and also want high returns you can invest in an NRE account fixed deposit if you want to save money for your future and planning to come back to India you can choose NRO FD for NRI fixed deposits. If you want to invest your money in foreign currency you can choose an FCNR deposit.

SBM bank has a variety of fixed deposits

NRE Deposit
Invest your foreign earnings in India and enjoy lucrative returns with SBM NRE Deposit.
Attractive interest rates with quarterly compounding
NRE account fixed deposits have flexible tenure and tax-free returns
NRE account interest rates are fully and freely repatriable (both principal and interest)

NRO Deposit
Invest your Indian rupee earnings and enjoy attractive returns with SBM NRO Deposit.
Attractive NRO FD rates with quarterly compounding
Flexible tenure of nro fd
Interest fully repatriable after payment of taxes
Can be jointly opened by NRIs/PIOs and Resident Indians

NRI Superia Deposit
Amplify your wealth with guaranteed higher returns on SBM NRI fixed Deposit, which is available in multiple currencies.
Guaranteed higher returns than NRE/FCNR Deposit
Tax-free returns in India and freely repatriable
Multiple currencies & tenures
Simplified documentation

FCNR Deposit
Park your foreign earnings from anywhere in the world to FCNR deposit (Foreign Currency Non-Resident deposits) in India in the currency of your choice and enjoy attractive tax-free returns.
Protection from exchange rate risk
Tax-free interest & principal
Fully and freely repatriable (both principal and interest)
Flexible tenure

Visit us at;-
https://www.sbmbank.co.in/global_indian/deposits.php
Phone no:- 1800 1033 817

What is a portfolio investment scheme?

It is a scheme by the Reserve Bank of India which allows Non -resident Indians to deal in different asset classes in Indian companies through a recognized stock exchange. By having a Nri saving account with a well-known bank.

Leverage the Indian secondary market from any part of the world
The Indian secondary market offers lucrative investment opportunities to grow your wealth. And you can get your piece of this pie despite being thousands of miles away.

SBM Private Wealth in association with India Infoline (IIFL) brings you the opportunity to grow your wealth through investments in Indian stocks and bonds. With our NRE Portfolio Investment Scheme (PIS) Account, you can buy and sell shares and debentures of Indian companies on a recognized stock exchange on a repatriable basis.

Benefits of our NRE Portfolio Investment Scheme (PIS) Account

Invest in India from any part of the World
Buy, Sell, Repatriate at a click
Enjoy Smooth Transactions
3-in-1 Account with Competitive Pricing
Competitive Brokerage and Value Added Subscription Plans
Award-winning Research Team
Dedicated Support Team
You can use your SBM NRE Savings Account to route the transactions under Portfolio Investment Scheme (PIS) on a repatriable basis.

You can use your SBM NRO Savings Account to route the transactions under Portfolio Investment Scheme (PIS) on a Non-repatriable basis.

Visit us at:-

https://www.sbmbank.co.in/global_indian/nre-account.php

Having our own house is a dream for everyone. However, fulfilling the dream to own a house is a tough task. That is why Sbm bank is here for NRIs to help them fulfill 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.

Benefits you enjoy: Having our own house is a dream for everyone. However, fulfilling the dream to own a house is a tough task. That is why Sbm bank is here for NRIs to help them fulfill 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.

Benefits you enjoy:
Attractive interest rates
Convenient repayment options
Flexible tenure
Quick loan processing
Easy Balance Transfer/Top-up loan
Available for Ready/ Under Construction Property

The NRE and NRO accounts are meant for NRIs to deposit abroad money into Indian accounts. There are many banks that offer NRO/NRE Savings account Services.

They hold utmost importance when NRIs want to invest their money or send funds back to India. Here are some of the features to help you understand the importance of NRE and NRO savings accounts for NRIs.

Importance Of NRO Account For NRIs
NRO savings account is destined to serve the purpose of depositing foreign money onto Indian accounts by converting it into Indian currency. You will have to inform your bank about your NRI status to help them process the required documentation to give you access to this facility.

Some of the points that explain the true efficacy of NRO accounts are:

● NRO savings account allows you to deposit any amount onto the account before moving to an abroad country.
● NRO accounts can also accept and deposit the money that you earn from Indian resources such as rents, dividends, or investment returns.
● You can also deposit or transfer the amount from your NRE account to your NRO account. Not just that, but you can also transfer the funds from overseas banks to this account.
● NRO accounts can also be opened in the joint format with Indian residents and give your partner the authority to carry out transactions.
● You can also repatriate money from your NRO savings account by paying some amount of taxes.

These are some of the points stating the efficient outcomes for NRIs to create an NRO Savings account before heading abroad for handling their finances.

Importance Of NRE Account For NRIs
NRE savings account is meant for depositing funds to Indian accounts from abroad countries. The amount in your NRE account is completely repatriable; you can move the funds to/from India without many boundaries.

Here are some of the perks of NRE accounts that explain its efficiency for NRIs to handle their finances:

● The interest that you earn in your NRE savings account and NRE Fixed deposit is not liable for being taxed in India. Hence, you can freely repatriate your money and it gives you economic control over your finances.
● Mandate holders can be assigned with NRE accounts as well for managing the finances and other associated activities.
● By linking the NRE account with a trading or investment account, you can take part in Indian investment options.
● The minimum balance requirement for an NRE Savings account is not high, which gives you liquidity.
● You can also withdraw money without any hassle if you have an International Debit Card.

Now, you must be aware of the important aspects of NRE/NRO for opening an NRI savings account. So, get in touch with professional financial institutions or banks to gain more information about these accounts and know how to create them.

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 has 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 Loans, 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.

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 with our NRI Saving account services.

NRE Savings Account
From providing for your loved ones to paying local bills, there will always be things to take care of 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.

NRO Savings Account
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.

Your convenience, our priority
You can opt for a Mandate/Joint Account holder facility for easy operations in India and never worry about your loved ones back home. With seamless Internet banking and multi-channel support, experience the best of banking from any part of the world.

Benefits
Account number of choice
Dedicated Relationship Manager
Seamless internet banking
24&7 Customer support
Mandate/joint holder facility for easy operations in India

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.
How are NRE and NRO accounts similar/different?
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 allows 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 an 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 the 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 NRE 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.

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 a 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 is a foreign currency-denominated account, where you can invest in the currency of your resident country.
FCNR deposit accounts are not savings account and they range from 1 to 5 years.
You can get both, the principal and the interest repatriated freely 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.

FCNR Account - Advantages

The premium earned from an FCNR account is non-taxable.
The candidate (or the NRI) can open an FCNR account with at least two NRI shared service holders.
You have the choice to choose different currencies - Pound, Sterling, US Dollar, Yen, and Euro.
An FCNR account lets you repatriate the principal and the interest earned to the country of residence/origin.
The interest rates are accumulated on a half-yearly premise and are payable after the end of the main year.
The ownership may range from 1 to 5 years.
When in need, the NRI can also apply for a loan against the assets held in his FCNR account. Although the credit sum will be in INR and can be recompensated from the amount you gain on the maturity of your deposit.

FCNR Account - Disadvantages

If the funds are deposited in an FCNR account that is held in an unreliable or feeble bank, the bank may be not able to repay the returns on maturity.
In case of a monetary emergency, the banks won’t have the option to repatriate the assets.
If the deposit is pulled back within 1 year, no profit is owed to the bank.
As mentioned in the beginning, an FCNR deposit is a term deposit account.
Penalties are applicable in the event of untimely withdrawal.
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.

The world's finest privileges at your fingertips

We aim to bring some of the new privileges and benefits to add to your enhanced lifestyle.

Discover a world of privileges

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

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 for everyone. However, fulfilling the dream to own a house is a tough task. That is why Sbm bank is here for NRIs to help them fulfill 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.

Benefits you enjoy:
Attractive interest rates
Convenient repayment options
Flexible tenure
Quick loan processing
Easy Balance Transfer/Top-up loan
Available for Ready/ Under Construction Property.

As you move abroad and start finding solutions for your banking needs where you can save your money in Indian currency, you might face many confusions. As an NRI or Non-Resident Indian, it is a fairly common situation and it becomes necessary to find the appropriate alternatives.
This is when an NRE account turns out to be a feasible option. NRE savings account or Non-Resident External savings account is one where the NRI makes deposits from the country he is residing in his home country. The money after reaching gets converted into Indian currency (Rupees).
Apart from NRE Savings Accounts, SBM Bank also offers other types of NRE Accounts, like Current, Recurring, or Fixed Deposit Accounts. So, if you are planning to move abroad and wish to open an NRE Account, banks provide the facility to open it either individually or jointly. For a joint NRE Account, however, you need another NRI to open it with.

Let’s look at the other benefits of having an NRE Savings Account:
1. Tax Benefits in NRE savings account
*Knowing about the taxation on interest earned on the deposits in an NRE savings account is necessary to decide if it is the right banking solution for you.
Hence, one huge benefit of having an *NRE savings account is that the interest earned on the funds deposited is tax-free in India. Other types of NRI accounts, like NRO accounts, are subjected to taxes. You can also transfer money to your NRE savings account from other accounts after paying the applicable taxes.
2. Repatriation Advantages
*Repatriation benefits come with most types of NRI savings accounts, including NRE Saving Accounts. It means that you can repatriate both, the principal and interest, abroad fully and freely. This ensures smooth movement of funds across accounts.
*3. Minimum Balance Requirement in NRE savings account
*, Unlike other savings accounts, you don’t need to maintain a certain balance in your NRE Savings Accounts. SBM Bank has updated its minimum balance requirement where you need to have a minimum of Rs. 10,000 in your account.
*4. FCNR Deposit
*In addition to having an NRE saving account, you can also book Foreign Currency Deposits to save your earnings in foreign currency. This can be done by booking the FCNR deposit. The best part is that you earn interest in foreign currency which is also tax-free in India.
*5. Convenience benefits
*If you’re thinking of opening an NRE Account, one more advantage is that you won’t need to visit your bank regularly. You can do that easily by filling a form online, attach the required documents and get them attested, and courier them to the bank in India.
SBM Bank offers easy account opening and high *NRE savings account interest rates for NRIs. Now you can simply email the required documents to the SBM Branch in India to open an NRE savings account.

India is one of the countries in the world with the largest number of people residing outside the country. The number is higher than you think- 16 million! Despite such a vast number, there are various myths about NRI home loans. Lack of information, awareness, and misinformation is to blame for this.

Let’s bust some of these myths and become financially educated.

1. Myth: NRIs cannot buy property in India.
   Fact: This is one of the most common myths among the NRIs. Since they are Indian citizens living in a different state, they are eligible for NRI housing loans and property ownership except for agricultural investments. You can very quickly buy property provided you have a proper loan application and documents.

2. Myth: You are not eligible for long-term loans.
   Fact: The only factor that influences your loans would be your financial stability. You are eligible for loans just like everyone else, provided you have a stable income and a good credit score. The NRI home loan interest rates are almost similar to citizens of the country in which you reside.

3. Myth: NRI entrepreneurs cannot apply for business loans.
   Fact: It is easier for salaried employees to apply for loans than self-employed individuals. But, if you can show income proofs, you can easily apply for loans for your business similar to residents.

4. Myth: An NRI has to fly back to India to get their loans approved.
   Fact: There is no need for you to fly down to India just to sign some papers; it can be done by your power of attorney, who is based out of India. With the world going digital each day, most banks even allow online signature, which does not need your presence.

5. Myth: Only blood relatives can have your power of attorney
   Fact: This is yet another misconception. Few banks allow you to choose your power of attorney despite blood relations. Few banks still require blood relatives to be your power of attorney.

6. Myth: The interest rate for NRI loans is higher than that of residents of the country.
   Fact: This was the case before, but recent laws and regulations are implemented to provide equal opportunity for residents and NRIs alike. NRIs today have the almost same rate of interest as that of the residents of the country.

7. Myth: You cannot apply for joint loans in India as an NRI.
   Fact: If you have a family member or relatives in India that are your co-applicant for a joint loan, you can quite easily apply for loans. This is never a thorn in your path, provided you have the right documentation and transparent financial statements. The loans can be for a home loan or any other type of loan.

The notions of NRIs are well off and do not require a loan have prevailed to date and are untrue. NRIs, similar to any Indian residents, need home loans. The rules for home loans for NRIs have favored the NRIs, making the housing dreams of lakhs of individuals real. At the same time, there is a need for education and financial literacy. These are the above-mentioned seven myths about NRIs home loans that you should look out for.

SBM Bank Nri housing loan

Having our own house is a dream for everyone. However, fulfilling the dream to own a house is a tough task. That is why Sbm bank is here for NRIs to help them fulfill 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.

Benefits you enjoy:
Attractive interest rates
Convenient repayment options
Flexible tenure
Quick loan processing
Easy Balance Transfer/Top-up loan
Available for Ready/ Under Construction Property

Moving abroad can be exciting, full of new opportunities, with a bright future. But, if you ask your parents, it is a bitter-sweet experience for them. On the one hand, they have their kid's bright future to look forward to; on the other hand, the idea of you moving away for months at length can be quite daunting.

So, what can you do to make this transition easy for them?

Here are a few things to do before moving abroad to ease your parents into this transition:

Show them you are responsible:

Most Indian parents believe that their kids are helpless without their presence. It gives them a reason to worry about your life in an entirely new city or country. Change that! Take responsibility for your life and actions. Start small, like making your bed, managing and saving your pocket money or income, neatly completing tasks asked of you.

Discuss your plans with them:

Every little detail matters here. The more you discuss your plans, the better they are aware of your future which will help them understand why you must move abroad. It will also put their mind at ease, knowing what you are up to a good start.

Become financially educated and independent:

A new country means entirely different rules and banking processes. Get yourself acquainted with your finances, get yourself an NRO savings account or NRE savings account. This way, your parents will be aware that you plan on living a sustainable lifestyle and being sincere about your life there.

Get on your feet and start becoming financially independent as soon as possible, be it by taking up a part-time job or an internship. This way, you put less pressure on your parents and feel proud that you are working hard. You also start to value hard-earned money.

Help your parents figure out technology:

Ever-evolving technology feels overwhelming to your parents. Help your parents understand how to use various devices and apps to make them feel connected to you even if you are far away. It might make them worry less about your well-being as well.

Ease into the process of moving abroad:

Moving abroad for a job, for college, or any other reason, cannot be a snap decision. It requires resources, strength, and financial ability to move abroad. Plan your process and execute it right. Keep your parents in the loop, so it does not come as a surprise to them. Make them comfortable with the idea of you moving away every day by taking baby steps during the process.

Final Words:

These are just a few simple things to do before moving abroad to better prepare your parents for your move. Keep an open mind and communication clear about the entire process and the transition will be just fine. Comment below anything that you did, that made you're moving out change easier on your parents.

Having our own house is a dream for everyone. However, fulfilling the dream to own a house is a tough task. That is why Sbm bank is here for NRIs to help them fulfill 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.

Benefits you enjoy:

• Attractive interest rates
• Convenient repayment options
• Flexible tenure
• Quick loan processing
• Easy Balance Transfer/Top-up loan
• Available for Ready/ Under Construction Property

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.

*How are NRE and NRO accounts similar/different?
*

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 *allows full repatriation of funds including both principal amounts and earned interests to the foreign accounts.

1. 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.

2. Deposits and Withdrawals
   An NRI can only deposit funds in an 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 the 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 NRE 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.

Digital and mobile banking have been on a steep rise for the last couple of years. Needless to say, mobile banking has made life easier and banking transactions faster and much more convenient. But with the global pandemic in 2020 and social distancing norms and stay-at-home orders, mobile banking became a need of the hour, and in 2021, the demand for it has only grown.

Gone are the days of standing in long queues outside ATMs to withdraw cash. So are the days of visiting the bank often to get transactions done. Mobile banking has revolutionized the way we bank, and the services are only going to get better with every passing year.

If this isn’t enough for you to ditch the traditional ways of banking, here are some more benefits of mobile banking in 2021 that you need to look out for.

*24X7 Access to your Account
*
A decade ago, you would have to go to the bank and fill in your passbook to check your account balance, but now you can do so by just logging into an app. That’s the convenience mobile banking has brought with it.
The best part is that you can access your bank account anytime, anywhere with just a tap on your phone. From checking your account balance, transferring funds, depositing money into your account to opening a new deposit, applying for an NRI housing loan, opening an FCNR deposit and so much more, you can do it all from the comfort of your home.

This way, you save time and effort and protect yourself from venturing out unnecessarily, especially during these trying times.

*Easy Interface and Tailored Options for more Convenience
*
A decade ago, banking seemed like a very complex task. There were many counters with many clerks serving different purposes if you were to visit a physical bank branch. For someone new to banking, it all seemed a little overwhelming, but mobile banking has simplified managing your finances for millennials as well as the elderly.

SBM Bank India will be soon launching its enhanced mobile banking and net banking experience. The objective is to simplify the banking experience and make it more convenient. The bank offers an app with an all-in-one dashboard that helps you get a quick view of your account and details of all your accounts at once --be it an NRE savings account, NRI savings account, NRI fixed deposit, TD, RD and so much more.

*Contactless Payments
*The demand for cashless payments has always been on a rise, but it is now a pressing priority with social distancing norms in place. Wallet payments have become extremely popular with apps like Google Pay, PhonePe, Paytm entering the market. All you have to do is, link your bank account to these apps and enjoy the convenience of cashless payments, on the go. And with mobile banking to make large transactions and manage your funds, you may never have to visit your bank in person ever again!

*Quick Transactions
*
The transactions that would’ve usually taken 4-5 business days can now take place in a matter of seconds. You can transfer money to your payees through NEFT, RTGS, and IMPS from any of your accounts through apps such as the SBM Mobile Banking app without having to visit an ATM or your bank branch for the same.

*Security
*
There’s a sense of security we feel when we don’t have to carry huge amounts of cash with us wherever we go. With mobile banking, transferring money is not only hassle-free but also secure. Most banks such as SBM Bank India offer apps that help you make quick transactions with 2-factor authentication to make all your money transfers incredibly safe and secure.

From keeping cash locked away in a locker at home to depending upon the bank for every transaction to using an app on our mobile phone for safe and convenient transactions, we’ve all come a long way. Mobile banking has now become an irreplaceable utility. It is designed to help us in every way possible to make our lives more convenient so that we can focus our time and energies on the things that matter.

One of the most critical challenges that NRIs face over time is to manage their accounts and finances while they are abroad. They need to adopt some special measures to make the money transfer aspects smooth from abroad to Indian accounts.

For keeping it secure and safer, NRIs try looking for all their available options. The banks and financial institutions can be the first point of contact to let the NRIs know about their available options.

To help NRIs learn about their safe and secure money transfer process, here are some of the *money transfer tips for NRIs *that they must keep in mind.

Create NRE & NRO Savings Accounts On Priority

An NRI must open an NRO Savings account or NRE savings account in India on priority. These accounts will help the NRIs credit their abroad income into Indian accounts. Not just that but they can also credit the income that they get from Indian resources into NRO Savings accounts.

The Indian income resources can be from local salaries, investment returns, or rent collections. If you have an NRO & NRE account you can also opt for *online remittance services *to transfer money to your loved ones residing in India.

Evaluate The Fund Transfer Exchange Rate Trend

The NRIs usually face problems while they plan on sending money back to India. They need to check on the exchange rate trend and compare the money transfer service facilities available. The exchange rate varies from time to time; therefore, impulsive moves can result in adversities. Therefore, this tip is essential to consider for ensuring safe and planned money transfers to India.

Seek PPF NRI Accounts

Provident Fund benefits are meant not just for the Indian residents but are also the same for the NRIs. People can get their PPF accounts subscribed for NRI needs before heading out of India. The maturity of the PPF accounts is 15 years and is a perfect long-term investment option for the NRIs. This account needs to be maintained throughout its tenure for a better profitable outcome.

Know About The Risks Involved In Overseas Transactions

For a smooth transfer of money from an abroad account to an Indian account, you need to understand the risks and objectives associated with it. You can get in touch with some top banks and financial institutions to get detailed insight into overseas transactions and the risks associated with them. Knowing about all the financial opportunities will help you ensure safe returns.

These are a few of the money transfer tips for NRIs that you must keep in mind while you are expecting seamless money transfers from abroad countries to Indian accounts. With the right assistance and information, transferring money from abroad accounts to Indian accounts can be more seamless.

Get in touch with the best banks of India such as SBM, DCB, IDFC, or others, to know more about the NRI account schemes and policies meant for allowing NRIs to leverage the banking benefits just like any other Indian resident.