Best Way to Send Money to India for Property Purchase (2026 Guide)

February 25, 2026

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Buying a property in Hyderabad or Bangalore is exciting, but paying for it can be a nightmare if you use the wrong money transfer method.

If you transfer $100,000 (₹83 Lakhs) through a regular bank wire, you could lose ₹1.5 Lakhs just in hidden exchange rate markups. That’s enough to buy a brand new bike or pay for your registration fees!

Must Read: This article is part of our Ultimate NRI Real Estate Investment Guide 2026. Before transferring money, make sure you know the FEMA rules. Read the full guide here:

In this guide, we compare the Top 4 Ways to send large sums of money to India for real estate purchases in 2026, ranking them by Speed, Safety, and Cost.

The “FEMA” Rule for Money Transfer

Before you hit “Send,” you must follow one Golden Rule to avoid legal trouble later.

The Rule: To repatriate (take back) your money in dollars when you sell the property in the future, the funds MUST come from:

NRE Account (Non-Resident External)
FCNR Account (Foreign Currency Non-Resident)
Direct Inward Remittance (Foreign Bank → Seller’s Indian Bank)

WARNING: Do NOT use your NRO Account (Non-Resident Ordinary) to pay for the property if you want easy repatriation. NRO funds are meant for local income (rent) and are harder to convert back to dollars.

Method 1: Traditional Bank Wire (SWIFT Transfer)

(Wells Fargo, Chase, Barclays, etc. to SBI/HDFC)

This is what 80% of NRIs use, but it is often the most expensive.

Pros: Extremely safe for huge amounts (e.g., ₹5 Crores+).
Cons:
- Bad Exchange Rate: Banks often mark up the rate by 2% to 4%. (If the real rate is $1 = ₹83.50, they might give you ₹81.50).
- SWIFT Fees: You pay $25-$40 per transaction.
Verdict: Use only if the builder/seller insists on a direct “Bank-to-Bank” certificate and refuses third-party transfers.

Method 2: Money Transfer Services (Wise, Remitly)

wise : Best Way to Send Money to India for Property Purchase

(The Modern Choice)

Services like Wise (formerly TransferWise) and Remitly have revolutionized transfers.

Pros:
- Real Exchange Rate: Wise gives you the “Mid-Market Rate” (the one you see on Google) with zero markup.
- Transparency: You see exactly how much the receiver gets.
Cons: Strict limits. Some services cap transfers at $25,000 to $50,000 per day. You may need to make multiple transfers for a large property purchase.
Verdict: Best for paying “Booking Amounts” (e.g., ₹5 Lakhs to ₹20 Lakhs).

Method 3: The “Hybrid” Method (Best of Both Worlds)

(FCNR Account + Local Transfer)

This is the smartest method for savvy investors who want to save money and avoid exchange rate risks.

How it Works:

Open an FCNR (Foreign Currency Non-Resident) account in an Indian bank (like SBI or ICICI).
Transfer your Dollars/Pounds to this FCNR account. (No conversion happens here; your money stays in Dollars).
When you are ready to pay the builder, instruct the bank to convert only the required amount to Rupees and transfer it to the seller.

Why It Wins:

Zero Exchange Risk: You decide when to convert. If the Dollar becomes stronger next week, you get more Rupees!
Tax-Free Interest: If you keep money in FCNR, the interest earned is tax-free in India.

Method 4: NRE Cheque / Demand Draft (The “Paper” Trail)

Sometimes, the simplest way is the best way. If you are physically present in India or have a Power of Attorney (POA) holder, you can issue a cheque.

The Process: Issue a cheque directly from your NRE Savings Account in favor of the seller.
The Benefit: This creates a perfect legal paper trail. The sale deed will mention “Paid via Cheque No. XXXXX from NRE Account,” which is gold for repatriation later.

Warning: Never withdraw cash from your NRE account to pay the seller. Once cash is withdrawn, it loses its “Repatriable” status.

Final Checklist Before You Transfer

Don’t hit “Send” until you check these 3 boxes:

Purpose Code: When sending money via bank wire, always select the purpose code “P0003” (Investment in Immovable Property). Do not select “Family Maintenance” (P1301) just to save paperwork; it will cause issues when you sell.
FIRC Copy: Ask your Indian bank for the FIRC (Foreign Inward Remittance Certificate). This is the proof that money came from abroad.
KYC of Seller: Ensure the name on the bank account matches the name on the property title deed exactly.

Must Read: List Of Legal Documents to Buy Property in India: Property Ownership

Conclusion: Which Method Should You Choose?

For Booking Amount (< ₹20 Lakhs): Use Wise (formerly TransferWise) for the best exchange rate and speed.
For Full Payment (> ₹50 Lakhs): Use Direct Bank Wire (SWIFT) or FCNR Method for safety and compliance.

Do you have more questions about NRI money transfers? Drop a comment below, and our financial expert will guide you!

FAQs

1. Is there a limit on how much money I can send to India for buying property?

No. There is no upper limit on the amount you can transfer to India for investment purposes under RBI rules. However, your sending bank (in USA/UK) might have a daily limit (e.g., $50,000). You may need to visit the branch personally to authorize a larger wire transfer.

2. Will I be taxed in India on the money I transfer?

No. The money you transfer from your foreign earnings to your NRE account is Tax-Free in India. Income Tax is only applicable on the income generated from that money (like rent or capital gains), not on the principal amount you transfer.

3. Can I use my friend’s NRE account to pay the builder?

Strictly NO. The money must come from your own NRE/NRO account. Third-party payments are considered “Benami Transactions” and can lead to confiscation of the property. If you are buying jointly with your wife, you can use a Joint NRE account.

4. Which gives a better exchange rate: NRE Account or Wise (TransferWise)?

Wise (TransferWise) typically offers a better exchange rate because they use the “Mid-Market Rate” (the real Google rate) with a small transparent fee. Indian banks often hide a 1% to 2.5% markup in the exchange rate when you transfer directly to an NRE account.

5. How long does a SWIFT transfer take to reach my Indian bank?

A traditional SWIFT wire transfer usually takes 2 to 4 working days. However, if you use modern services like Remitly or Wise, the money can often reach your Indian account within 24 hours or even instantly, depending on the amount.