The Cheapest Ways to Transfer Money From Europe to India

When it comes to sending money from Europe to India, finding the cheapest and most efficient method is essential. Thankfully, there are various options available that can help you transfer funds at affordable rates.

Peer-to-peer platforms like PayPal are also viable options. Although they may have slightly higher fees compared to specialized money transfer services, these platforms offer convenience and user-friendly interfaces. However, it's crucial to consider the currency conversion rates offered by these platforms to ensure you're getting the best value for your money. On the other hand, platforms like Wise, Remitly, and others offer competitive exchange rates and low fees, making them popular choices for sending money from Europe to India.

In this comprehensive guide, we will delve into the most economical and efficient methods of sending money from Europe to India. Additionally, we will provide valuable insights, tips, and useful resources to help you reduce costs and optimize the amount received by your beneficiary.

Through our analysis, conducted over the past three months using our comparison engine, we have identified three consistently affordable options that offer the greatest savings:

• Western Union (cheapest in 35.0% of searches)
• Remitly (cheapest in 32.6% of searches)
• Profee (cheapest in 27.5% of searches)

To find out the cheapest service for your transfer right now, use our live comparison tool below 👇

You’re Probably Paying Too Much To Send Euros to India

Here’s how you might be paying more than necessary to transfer euros to India:

• Fixed Fee: A predetermined fee charged by banks and certain other providers for converting and transferring money to India. The fixed fee can vary and may reach as high as 40 euros, adding to the overall cost of the transfer.
• Percentage Fee: This fee is calculated based on a percentage of the total amount being transferred. Consequently, the lower the transfer amount, the lower the percentage fee. These fees can range from less than 0.5%-2% or even higher, depending on the provider.
• Exchange Rate Margin: This occurs when a currency provider offers an exchange rate that is less favourable than the standard exchange rate. This disparity results in the beneficiary receiving a lesser amount than expected due to the unfavourable exchange rate offered by the currency provider.

Money from Europe to India Path 1: Banks (Expensive)

Sending money to India from European countries often entails certain expenses, primarily in the form of transfer fees and concealed exchange rate margins. While banks may appear to be the initial choice, resisting the temptation to send money from Europe to India through your bank account is strongly advised for one straightforward reason: it can be very costly. Banks typically impose a fixed fee for international wire transfers and offer less favourable exchange rates compared to alternative options.

Expensive Fees

When you use a bank based in a European country to send money to a recipient in India, the money will have to be sent as an international wire. Here are the fixed fees that two of the major banks charge for making an international wire transfer to India:

• ICICI Germany: 0.5% of transfer amount as processing fees
• Royal Bank of Scotland (RBS): markup fee of 3% on the mid-market exchange rate

All in all, the following fees are associated with a bank transfer of Euros to an Indian bank:

• Transfer Fees: Most banks and money transfer services charge a flat fee or a percentage of the transfer amount as a service fee. This fee can range from a few Euros to a higher amount, depending on the institution.
• Exchange Rate Margin: Banks and money transfer providers often apply a margin to the mid-market exchange rate when converting Euros to Indian Rupees. This markup can lead to a less favorable exchange rate, and the recipient may get fewer Indian Rupees than the current market rate.
• Correspondent Bank Fees: In some cases, intermediary banks or correspondent banks may be involved in the transfer process, and they may charge fees for handling the funds. These correspondent bank charges are typically deducted from the transferred amount.
• Additional Charges: Depending on the bank or transfer service, there might be additional charges for urgent or expedited transfers, same-day delivery, or other premium services.
• Recipient Bank Fees: The recipient's bank in India may also levy charges for receiving an international transfer. These charges can vary depending on the bank and the type of account held by the recipient.
• Regulatory Fees: Some countries impose regulatory fees or taxes on international money transfers. These charges may be applicable to both the sender and the recipient.

Poor Exchange Rates for EUR-INR Transfers

Although many European banks do not disclose the exchange rates applied to international wire transfers, it is evident that the rates offered for converting Euros to Indian rupees are typically considerably inferior to the base rate. The bank retains the difference, resulting in a concealed fee, as the recipient will receive a reduced amount when you send money overseas. Typically, banks offer exchange rates that are 5% to 15% less favourable than the mid-market rate. Take a look at our analysis of the exchange rates at the Bank of Scotland to find out more about how this works.

Path 2: PayPal (Also Expensive)

PayPal is widely used for international money transfers due to its popularity and the prevalence of existing PayPal accounts. Despite being a quick and convenient peer-to-peer mobile payment option, it provides exchange rates that are not optimal when converting between US dollars and Euros.

When using PayPal, the exchange rate margins range from 5% to 7% of the transfer amount, making it one of the more expensive methods for sending money overseas, comparable to traditional banks.

For more detailed insights into PayPal's features and performance, refer to Monito's comprehensive PayPal review.

Path 3: Money Transfer Providers (Best Deal)

Didier Weemaels | Unsplash

If you'd like to save money when sending abroad, a specialist money transfer service will be your best option for converting your US dollars and sending them to a European country. Because these currency exchange companies specialize in sending money overseas, they're very efficient and pass those cost savings on to you through low fees and reasonable exchange rates.

Benefits of International Money Transfer Services

Using a money transfer specialist for international remittances can offer convenience, cost-effectiveness, and peace of mind, making it an attractive option for individuals and businesses sending money across borders.

The good news is that numerous authorized money transfer specialists offer online services for transferring money to India. These services come with transparent and minimal fees, competitive exchange rates, expedited delivery times, and added convenience, ensuring efficient and cost-effective transfers. Prioritize comparing these money transfer services to secure the best Euro to Rupees rate before finalizing your transfer, enabling you to find the optimal money transfer service for sending funds to India.

How to Transfer Money From Europe to India

To discover the most affordable money transfer specialist for sending money from Europe to India, you should undertake the following four steps:

Step 1: Compare Services

Numerous money transfer services are available for sending money to India, each offering varying fees and exchange rates. Monito's real-time comparison engine gathers the most favorable offers in the market, providing you with a comprehensive view of the transfer's cost, estimated arrival time, and available pay-in and pay-out options.

Step 2: Create an Account

After selecting a money transfer service, you will need to set up an account with them. This involves providing your personal information and a form of identification. Once your account is verified, you can begin using the service right away.

Step 3: Set Up Your Transfer

When using most money transfer services, you will be required to furnish specific details about the recipient, which may include:

• Full name and residential address of the beneficiary.
• Name and address of their Indian bank.
• Banking details, such as routing number/sort code and account number.
• In certain cases, you may need to provide the recipient's bank's SWIFT code (usually available on the bank's website).

Furthermore, you have the flexibility to choose how you want the recipient to receive the money, as some services offer various options like cash pickup, home delivery, mobile wallet, or airtime top-up services.

Step 4: Review and Pay

After inputting all the required information, the last step will involve making the payment for your transfer. With the majority of money transfer services, you'll have the option to track the status of your transfer through a dedicated user dashboard.

Cheapest Providers For Europe-India Transfers

When sending your money to Europe, selecting the right money transfer specialist that aligns with your requirements is crucial. Any of the services listed below will result in significant cost savings compared to the average European bank or PayPal:

Here are the cheapest providers from Europe to India on Monito (last 3 months):

XE Money Transfer

XE Money Transfer is a reputable and efficient international money transfer service that enables individuals and businesses to send and receive funds across borders with ease. With a focus on transparency and competitive exchange rates, XE Money Transfer allows users to make secure and reliable transactions, saving both time and money. With a focus on transparency, competitive exchange rates and efficient service, XE enables seamless cross-border transactions at competitive exchange rates, ensuring that customers get the most value out of their transfers.

• Approx. Fees for EUR-INR Transfers: 1.6% per transfer
• Best For: Transfers above €500
• More Info: Read our XE Money review or visit the website.

Panda Remit

Panda Remit is one of the most convenient, cost-effective, and secure choices for secure cross-border remittances at reasonable rates. With Panda Remit, you can remit from the comfort of your home in just 2 minutes at a fraction of the cost compared to traditional banks. Remittance from Europe to India is a breeze, with support for all major banks like ICICI, HDFC, Indian Overseas Bank, and more, ensuring a smooth receipt of your funds.

• Approx. Fees for EUR-INR Transfers: 1.6% per transfer
• Best For: Transfers above €1000
• More Info: Read our Panda Remit review or visit the website.

Skrill

Skrill is another popular and reliable option for transferring money from Europe to India. As an established digital wallet and payment platform, Skrill offers a convenient way to send funds internationally. One of Skrill's advantages is its wide range of supported currencies, which allows users to avoid multiple conversions and associated fees when sending money to India.

• Approx. Fees for EUR-INR Transfers: up to 4.99% per transfer
• Best For: Transfers above €500
• More Info: Read our Skrill review or visit the website.

Factors to Consider When Sending Money From Europe to India

Martin Jernberg on Unsplash

Foreign individuals, particularly non-Indian residents (NRIs), often engage in money transfers to India as a means to preserve their foreign earnings within an Indian bank account. Furthermore, India and European countries maintain significant trade and tourism relations, resulting in a substantial volume of currency exchange between the Euro (EUR) and Indian Rupee (INR). This exchange activity is driven by the continuous movement of trade and people between the two regions.

Notably, a recent study by the Reserve Bank of India (RBI) revealed that India received the highest annual foreign inward remittances of $89,127 million in FY 2021-22, out of which about 7.5% came from the U.K., Germany and Italy combined.

When sending money from Europe to India, several factors should be taken into consideration to ensure a smooth and cost-effective transaction. Monito, as a reliable comparison platform for international money transfers, can help users navigate these considerations.

• Exchange Rates: Keep an eye on the exchange rates offered by different providers, as even a small difference can significantly impact the amount received in India.
• Transfer Fees: Compare the fees charged by various services, including any hidden charges, to choose a cost-efficient option that fits your budget.
• Transfer Speed: Depending on the urgency, select a service that offers the desired transfer speed, as some may take longer than others to deliver funds to India.
• Transfer Methods: Consider the available transfer methods, such as bank transfers, debit/credit cards, or mobile wallets, and choose one that aligns with your preferences and convenience.
• Reliability and Security: Prioritize reputable and secure platforms like Monito's recommended providers to ensure your money reaches the intended recipient safely.
• Customer Reviews: Check customer feedback and ratings on Monito's platform to gauge the reliability and user experiences of different money transfer services.
• Regulation and Compliance: Opt for providers that adhere to regulatory standards and have strong compliance measures to ensure the legality and legitimacy of your transfer.

By using Monito's platform, individuals can conveniently compare various money transfer options, making informed decisions and optimizing their transactions when sending money from Europe to India.