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I am an Indian citizen working in Singapore. I have an education loan for which I have monthly EMIs. Currently I transfer money to my parents account and they pay the loan EMIs.

Kindly advise on:

  1. What is the best and most economical way for me to pay the loan EMIs directly? (whether from a Singapore account or a NRE/NRO account)

  2. For all expenses I make in India (e.g shopping, general expenses in India visits) what account should I be using, ideally? Is the route to transfer into NRE then NRO and then withdraw from NRO?

  3. If I plan to make any investments in SIPs/Stock markets, should I link my NRE account with a demat account and directly use that? If I sell the shares will the earnings come back into NRO or NRE?

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What is the best and most economical way for me to pay the loan EMIs directly? (whether from a Singapore account or a NRE/NRO account)

It is advisable to have it via the NRE account as this would be easier. If you already have funds in NRO account, you can use that before you use the funds from NRE account.

For all expenses I make in India (e.g shopping, general expenses in India visits) what account should I be using, ideally? Is the route to transfer into NRE then NRO and then withdraw from NRO?

Whatever is convenient. Both are fine.

If I plan to make any investments in SIPs/Stock markets, should I link my NRE account with a demat account and directly use that? If I sell the shares will the earnings come back into NRO or NRE?

You need to open a DEMAT PINS Account and link it to NRE account. You are sell and repatriate the funds without any issue from PINS account.

Related question Indian Demat account

  • Since NRE would keep it in foreign currency - each time i do any local transactions i would end up paying conversion at that time. Would it be ok to transfer to NRE a lump sum and then transfer from NRE to NRO and use the NRO then for Expenses in India . On similar note , i still have an active credit card ( Indian ) which i use - can pay the bills of this credit card with NRO ? – Pb89 Nov 16 '17 at 2:43
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    @Pb89 A normal NRE account is designated in Indian Rupees. When you transfer funds into this account, they are converted to INR at prevailing exchange rate. As an NRI you can also open a FCNR that holds funds in USD, GBP, etc. There is no issue transferring funds from NRE to NRO. – Dheer Nov 16 '17 at 2:52

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