Can big transaction be Quetioned in EC intervew

[vs007]

Hi All,

I have a question regarding EC fund requirement.

Since my bank balance does not have sufficient funds, thus I would be taking some funds from my parents. Now this will come as a big transaction in my bank statement. Can this big transaction be questioned, do I need to provide justification to this transaction.

Please advise

Regards
VS007

[apeterso925]

Hi All,

I have a question regarding EC fund requirement.

Since my bank balance does not have sufficient funds, thus I would be taking some funds from my parents. Now this will come as a big transaction in my bank statement. Can this big transaction be questioned, do I need to provide justification to this transaction.

Please advise

Regards
VS007

You should get a letter from your parents, explaining that it was a gift...big, especially recent, deposits arise suspicion so it's in your best interests to explain that it's really your money.

The ECO will want to know that you haven't just borrrowed the money to trick him into thinking you have enough funds - he needs to be satisfied that you will arrive in the UK with those funds.

[vs007]

Hi Amy,

but taking it as gift also can rise suspicion .... do you think taking it as a gift is a better was or i can take a letter from my dad saying that he has given me the money to help me sustain myself in UK, this would be straight for the ECO

Rgds
VS007

[VictoriaS]

It won't matter, but you should also show the bank statements form your father to prove that he has transferred the money to you.

Victoria

[apeterso925]

It won't matter, but you should also show the bank statements form your father to prove that he has transferred the money to you.

Victoria

Victoria's right, your bank statements are important. I don't think the gift, in itself, is suspicious...you just need to show that the gift won't be taken back

If your parents can write a letter, stating that they have given you a gift in the amount of XXXX pounds to aid you in supporting yourself, that seems sufficient.

To me, a gift is far less suspicious than some bank loan. Case in point, I've actually borrowed quite a bit of cash from a 0% credit card I have, but I made a point to do that after I submitted my bank statements for EC because I was concerned that a large chunk of money taken from a credit card would look suspicious...so I showed less funds than I had because I wanted to show only the straight-forward funds.

My experience was that the overall point is: 1) do your bank statements show sufficient funds to support yourself until you find a job? and 2) are the funds legitimate/will you still be in possession of them when you arrive in the UK?

[push]

I too took a loan from my parents (huge transaction just a few weeks before EC application). I however, included a Gift Deed on a stamp paper, a letter from my parents to HO, photocopies of the cheques used for transferring the amount and bank statements of my parents' account.

It worked for me. But even then my case can not be taken as an example as I already had a job in my hand, with a sign on bonus clause and a decent deposit in a UK bank.

I was reading on this forum elsewhere that someone's EC got rejected due to large recent transactions. Ppl say it is better to take a personal loan for showing funds in your account.

regards,

push_hsmp

[apeterso925]

I too took a loan from my parents (huge transaction just a few weeks before EC application). I however, included a Gift Deed on a stamp paper, a letter from my parents to HO, photocopies of the cheques used for transferring the amount and bank statements of my parents' account.

It worked for me. But even then my case can not be taken as an example as I already had a job in my hand, with a sign on bonus clause and a decent deposit in a UK bank.

I was reading on this forum elsewhere that someone's EC got rejected due to large recent transactions. Ppl say it is better to take a personal loan for showing funds in your account.

regards,

push_hsmp

So, by personal loan do you mean that the general consensus is that the ECOs would rather see a bank loan than money borrowed from a family member?

That seems backwards, thinking from a financial stability standpoint. Given that the spirit of the funds requirement is to prove that you can support yourself, a bank loan would mean that almost immediately upon receipt of your funds, you're making payments back to the bank...and those payments are coming out of the money you need to feed and clothe yourself. So, in essence, I would imagine the ECO looks at a bank loan and mentally subtracts the relevant payments from the feasible amount of funds.

So, going on pure logic, I would think the ECOs are more satisfied to see a gift from a family member, as that doesn't need to be paid back. Or am I missing something?

[rrst_101]

I too took a loan from my parents (huge transaction just a few weeks before EC application). I however, included a Gift Deed on a stamp paper, a letter from my parents to HO, photocopies of the cheques used for transferring the amount and bank statements of my parents' account.

It worked for me. But even then my case can not be taken as an example as I already had a job in my hand, with a sign on bonus clause and a decent deposit in a UK bank.

I was reading on this forum elsewhere that someone's EC got rejected due to large recent transactions. Ppl say it is better to take a personal loan for showing funds in your account.

regards,

push_hsmp

So, by personal loan do you mean that the general consensus is that the ECOs would rather see a bank loan than money borrowed from a family member?

That seems backwards, thinking from a financial stability standpoint. Given that the spirit of the funds requirement is to prove that you can support yourself, a bank loan would mean that almost immediately upon receipt of your funds, you're making payments back to the bank...and those payments are coming out of the money you need to feed and clothe yourself. So, in essence, I would imagine the ECO looks at a bank loan and mentally subtracts the relevant payments from the feasible amount of funds.

So, going on pure logic, I would think the ECOs are more satisfied to see a gift from a family member, as that doesn't need to be paid back. Or am I missing something?

Yes,thats one way of seeing things. But the ECOs suspect that the gifts would be returned back immediately after the receipt of the funds.This is based on their earlier experiences.
But if its a personal loan, they think that u will land in UK with that cash and then clear it off once you have settled down. This makes sense, as in why would you return the banks' money before you reach UK, when it would be quite easy for u to repay when u r earning GBPs.While in the case of gifts, u might have to return the gift before u leave home for some reason.
Again this is my point of view, as I have seen rejections based on huge transactions made in the name of gifts,but havent come across a rejection based on transaction thru personal loan.

Cheers,
rrst_101.

[push]

I know it looks counter intuitive from a financial perspective but what rrst_101 has said is right (as in it seems to be the view subscribed by ECO in India).

In India, the Gifts received from relatives are not taxed and therefore, it is very easy for someone to opt for such a transaction. The transaction may be reveresed the day the EC is granted and ECO runs the risk of allowing a person to enter UK without sufficient funds.

In my view, what weighs in favour of a personal bank is the fact that one incurs pre-mature termination penalties. So one does not have any incentive to return it to the creditor. Nobody however, stops you from investing the proceeds of the personal loan in the stock market and again land up in Uk without adequate (from the HO's perspective) funds !!

What I said was based on advise/experience of other people. I myself went for the "gifts from the parents" route.

regards,

push_hsmp

[vs007]

Thanks guys ...

seems quite complicated and nothing is guaranteed as it all depends on the ECO .. I feel its purely your luck ...

I Have one more question regarding funds .... I traveled to UK several times from India and thus have some XXXX GBP amount Cash and some XXXX GBP amount in my travelers card. I want to show these amount also during EC .... how should i go about showing this amount which is already in GBP

[vs007]

Thanks guys ...

seems quite complicated and nothing is guaranteed as it all depends on the ECO .. I feel its purely your luck ...

I Have one more question regarding funds .... I traveled to UK several times from India and thus have some xxxx GBP amount Cash and some xxxx GBP amount in my travelers card. I want to show these amount also during EC .... how should i go about showing this amount which is already in GBP

[push]

Can you get some kind of a statement regarding availability of funds in your cards? May be an electronic print out or something?

You can obviously show these funds, provided you have some documentary proof of the same.

regards,

push_hsmp

[vs007]

Can you get some kind of a statement regarding availability of funds in your cards? May be an electronic print out or something?

You can obviously show these funds, provided you have some documentary proof of the same.

regards,

push_hsmp

(1) I do not have any documentary proof for the cash in GBP amount. I would be getting the asset evaluation report(for all my asset) from a CA in the same report can I mention this GBP amount also.

(2) Regarding the big transaction i have an idea ....... can i say that i had sold my Car and this is the amount af my selling the car and i can attach the letter from my day as a buyer ... does it apper to be a good and safe idea

[SYH]

The easiest thing to do is to have your father add you as an account owner to his account, then it is your funds too and you have access to it in the HO eyes. Obviously the arrangement with your parents is that it isn't your money. If you can wait for the next statement to generate then your name will be on the account as well.

[VictoriaS]

Parents give their children gifts. It's not unusual. As long as it is documented there shouldn't be any problem.

Victoria

[apeterso925]

Yes, that does make sense when you put it that way. It's unfortunate that the unethical behavior of a few makes life so complicated for everyone else!

Although you do have a point about investing the money once you have it...gotta love the almighty pound

Amy

I know it looks counter intuitive from a financial perspective but what rrst_101 has said is right (as in it seems to be the view subscribed by ECO in India).

In India, the Gifts received from relatives are not taxed and therefore, it is very easy for someone to opt for such a transaction. The transaction may be reveresed the day the EC is granted and ECO runs the risk of allowing a person to enter UK without sufficient funds.

push_hsmp

[vs007]

Dear Friends

still not clear of the answer .... please advise for points 1 & 2

(1) I do not have any documentary proof for the cash in GBP amount. I would be getting the asset evaluation report(for all my asset) from a CA in the same report can I mention this GBP amount also.

(2) Regarding the big transaction i have an idea ....... can i say that i had sold my Car and this is the amount af my selling the car and i can attach the letter from my day as a buyer ... does it apper to be a good and safe idea

[allgo]

am even more confused?

so hw many folks r here who hv personal loan nd got EC approval?

gift deed seems dubious to me too......but also taking personal loan means one is not hvin sufficient funds at hand and hence taking the loan....

also what is a gift deed? pushp_hsmp u seem to be successful with gift deed. can u tell me what kind of stamp paper it is and can u mail me the format u had used to all_go_rythms@yahoo.com

thanks everybody

[allgo]

hi apeterso925,

seems u too got ur EC approved...

did u take a personal loan then?

if u dont mind can u tell how much u took as loan....i hv 1.5 lakhs to my name across 2 bank acccts as liquid cash. i am planning to takw 2 lakh loan in case i go for that option.

can u suggest?

[apeterso925]

hi apeterso925,

seems u too got ur EC approved...

did u take a personal loan then?

if u dont mind can u tell how much u took as loan....i hv 1.5 lakhs to my name across 2 bank acccts as liquid cash. i am planning to takw 2 lakh loan in case i go for that option.

can u suggest?

I did get EC approval But no, I did not get a loan...I had enough savings on my own, thankfully. Although just to be on the safe side, I included a printout of the market value of my car, along with a written explanation that I intended to sell it before I arrived in the UK.

But, lol, I leave in 5 days and the stupid car is still parked right outside! No takers. Oh well.