I need a suggestion. I’m trying to add little background, on why I’m asking this question. Sorry, for lengthy post but If you would like to skip the background part plz directly read from “ COMING TO DIRECT QUESTION”. I’m a married and I have worked few years ( initial years had to wait until I got work permit) and so have some money for myself. However, my husband used to take care of financial related things. So, I have a very little knowledge on Financial matters. With no time after marriage, I realized that I have married a person who doesn’t have any bad habits as per the society norms but just have anger management issue, becomes abusive verbally on very little things, body shames and doesn’t respect me or my family, doesn’t give appreciation for any care or effort put that I put for him or home. I can hardly count on fingers when he made me happy or special. As if he married to have some free servant at home to do all the work. Which gave me a sense of helpless ness. So, my only reason to work was to keep myself occupied and I would have some kind of recognition at work for satisfaction or atleast get some money. Instead of being a house wife who doesn’t have any value or receive just rants from DH or in-laws . I was just happy that I was able to spend with my money on things I need or gift to dear one but I never took interest in aspects of controlling money. COMING TO DIRECT QUESTION- Recently my parents asked me if I can financially help them which they would be initially paying with interest for few months and return the actual amount as soon as they can. Their main intention is instead of paying outsiders or bank a higher interest rates they would lend money with moderate interest from me. Which in turn will be beneficial for me as well. As usual my husband came up with some stories or reason to not help. Which I could convince him, but lately he has been saying if he send money to India he cannot get those money back to US account when needed or probably he might have to give explanation on receiving the amount or pay some extra fees for that. He earlier sent money to his relatives or parents but never asked them to return. If it is really huge amount was saved in Indian bank account was used for house construction recently. It’s been long time my DH came to US and want to take a home here. So, we have been saving money for it. So, as we might need it if we confirm to buy home ( which might take later part of year or next year not sure for now). I understand that but at the a same time, I would like to help my parents as they asked for first time and which they are not expecting anything for free…… So, my question is how difficult is it for money to be transferred to US account from India if we transfer? I asked if we can justify that we have sent the money for family support because I believe we will be having the bank statements right for every transaction or money taken from bank. Then why it is difficult to give justification for returned money from India or if not can’t we show it as gift or help from dear one without any kind of issue or paying any extra money?
You are taking loss here . Any money you transfer from USA is easy but repatriation requires you to pay gst . It isn’t worth in your situation since you have short term financial goal of buying the house . Since your Dh is also abusive if something happens to your parents what will you do In fact in your situation I would say keep the money in FD . Minimum you get 5% interest in USA . Your parents are better off taking loan Never mix money and relationship . You might loose either one of them or both rarely you will have both .
@amulya2020, You can open a Non-resident External Account (NRE) and Non-resident Ordinary Account (NRO). Anything that is kept in Non-resident External Account can be kept in dollars and can be repatriated at anytime. It will get more interest than what you get in the US but there will be TDS on all interest paid automatically and you may have to claim it back by filing tax returns. NRO accounts will be rupee denominated as soon as the funds are received and can be spent immediately in India. There is a small GST one needs to pay when this amount is converted from dollars to rupees. As per Reserve Bank of India Regulation, repatriable loan can be given by NRI/OCI to their close relative in foreign currency subject to below mentioned condition: 1) The amount of the loan should not exceed $250,000 2) Loans can be from remittances to NRE, FCNR Accounts in Foreign Currency 3) Minimum maturity period of loan is 1 year 4) Loan is free of interest Loan (Non-repatriable basis) in Indian Rupees can be given by NRI/OCI to their resident individual in Rupees subject to below mentioned condition: 1) Loans can be from remittances to NRO, NRE, FCNR Accounts 2) Loan period not to exceed 3 years 3) Rate of interest not to exceed 2 over the Bank Rate (Repo Rate) When you gift money to them, apparently, there are no restrictions as there is no repatriation involved. Many children send money to their parents from overseas without any hickup. I hope this explains the conditions for lending money to the resident in India.
Thank you for the suggestion. DH have changed a bit and less adamant than earlier but still not that understanding. I know your suggestion might be from your own or others experiences. As I’m still in my early 30’s, I will definitely keep that in mind. Yes, FD one makes absolute sense. I will definitely think about it. Thanks again for responding.
Thank you for taking time and explaining patiently. I got a chance to learn about new things, that I didn’t know earlier. Definitely, I will try to explore little more on it and will come back for your valuable inputs again if needed
Thanks again @mangaii and @Viswamitra for responding and providing your valuable inputs. Glad to have this community, where we post questions that we hesitate to do otherwise and though virtually people are ready to help with their suggestions
