Sending your child’s university fees abroad for the first time? It’s natural to feel anxious; after all, every parent wants the transfer to go smoothly and on time. That’s why we have put together this complete guide on how to pay university fees abroad from India, with 8 expert tips to help parents make secure, cost-effective, and stress-free international tuition fee payments.
Whether you’re worried about TCS charges, bank delays, or exchange rate differences, this guide will help you transfer smartly, save money, and stay cool.
Also Read: 6 Hidden Fees When Sending Money Abroad You Miss Out and Tips to Save
1. Plan the Transfer to Reach on Time
International money transfers, regardless of their purpose, are not instantaneous like domestic transfers. It may take from 4 hours to 48 hours to reach the beneficiary. Make the transfer as early as possible to skip delays in bank processing. So plan accordingly so that the tuition fees reach the university before the deadline.
Watch the short video to find out the best time to transfer money overseas:
2. Keep Track of TCS Charges
Taxes on educational money transfer are GST and TCS (Tax Collected at Source). However, TCS charges do not apply to educational outward remittance funded by an educational loan. If not paid out from the loan, the payments above Rs. 10 lakhs in a financial year invite 5% TCS for the amount above the threshold.
Track all your international transactions done in a financial year, including foreign currency and travel card purchases. Inform your TCS history to the foreign remittance partner before initiating the international tuition fee payment to calculate and pay upfront if applicable.
Also, remember that you can claim a refund of the TCS paid through ITR filing by the end of the financial year.
To Know More: How To Claim TCS Refund Online When Filing ITR – Complete Guide
3. Collect SWIFT Copy
The SWIFT copy is the document confirming the completion of a cross-border transaction. Collect the SWIFT copy promptly for credit confirmation with the beneficiary and record it for future reference.
4. Send Sufficient Funds
Ensure that the amount being transferred is sufficient and includes extra funds to cover processing fees and taxes, to avoid a shortage when it reaches the university or student.
5. Communicate with Loan Providers
If you have taken an educational loan to cover educational expenses, be cautious with the banks. They often position themselves as the only option for foreign remittance, creating the impression that third-party platforms cannot be used. In reality, there are no such restrictions by the RBI. Banks are fully capable of disbursing loan amounts even when the remittance is processed through authorised third-party platforms like ExTravelMoney. This is completely acceptable to the university too.
Share the quotation from the better remittance platform with the banks and inform them that you are getting more competitive rates. By doing so, you can either negotiate with the banks to get a better exchange rate or convince them to release the amount for transfer through your preferred forex aggregator.
Also Read: What Banks Don’t Tell You When Taking Overseas Education Loan
6. Prepare Beneficiary Details and Documents Required
The beneficiary documents required for education-related international remittances are as follows:
- Passport
- PAN Card (linked with Aadhaar card)
- University/College Offer or Acceptance Letter
The sender documents needed are mentioned below:
- PAN Card
- Aadhar Card
Apart from the documents listed, you must collect the following bank details of the beneficiary:
- Beneficiary Address
- Bank Name
- Bank Address
- Account Number
- SWIFT Code
- Sort Code
- IBAN Number
7. Transfer under Educational Purpose
International money transfers for tuition fees and personal expenses of the student are considered for educational purposes. Ensure you select the correct purpose to receive tax benefits and discounts on exchange rates.
8. Compare Different Service Providers
The last and most important tip is that banks, foreign exchange companies and forex aggregators do not provide the same exchange rate and fees. So compare the total payable for each provider to identify the best service.
Yes, it can be a hectic task. But what if you can compare in seconds and get the best exchange rate and lowest transfer fees, with zero platform fees? On ExTravelMoney, we display the best banks and RBI-authorised service providers near you, from which you can choose and transfer without any sign-up or membership.
From timing your transfer to confirming beneficiary details and claiming TCS refunds, small steps make a big difference in avoiding delays and extra costs. You don’t have to navigate this alone when you can get expert guidance and transparent rates.
Ready to simplify your child’s tuition payment? Try ExTravelMoney education remittance for fast quotes and authorised providers for tuition fee payments, GIC and Blocked account opening and money transfer, student maintenance or any other overseas transfer purposes.
Also Read: Complete Guide to ICICI Globetrotter Student Insurance
Ann Mariya Job is the Associate Content Writer at ExTravelMoney.com. Holding a Bachelor’s in Journalism, she excels in creating deeply researched, engaging, and crisp content. Her work helps readers understand the complexities of foreign exchange, overseas money transfers, and international travel.