How to Send Money Abroad for Your Child’s Education

Sending money abroad for studies is not just about transferring funds; it is about choosing the right purpose, documents, and method. This guide breaks down educational money transfers from India, including limits, taxes, and the best ways to save on money transfer fees.

Also Read: What Banks Don’t Tell You When Taking Overseas Education Loan

Purposes That Fall Under Educational Money Transfers

1. Tuition fee payment
2. Living expenses
3. Canadian GIC Account opening and money transfer
4. German Blocked Account opening and money transfer

Please Note: You cannot send money to your child studying abroad under the educational remittance purpose if their student visa has expired. So the transfers shall come under the remittance purpose of ‘maintenance of close relatives’. The documentation and tax regulations differ for both.

Required Documents for Educational Remittances

The beneficiary documents required for education-related international remittances are as follows:

1. Passport
2. PAN Card
3. University/College Offer or Acceptance Letter

The sender documents needed are mentioned below:

1. PAN Card
2. Aadhar Card

Required Beneficiary Details

1. Beneficiary Address
2. Bank Name
3. Bank Address
4. Account Number
5. SWIFT Code
6. Sort Code
7. IBAN Number

How Much Money Can Be Sent for Education from India

The maximum transferable amount for study-related remittances abroad in a financial year depends on the residential status of the sender in India.

For NRIs, gift remittance falls under the NRI repatriation purpose of international money transfer.

Residential Status	Account Type	Maximum Remittance Limit
Resident Indian	Savings Account	USD 2,50,000 equivalent
Non-Resident Indian	NRO Account	USD 1 million equivalent
	NRE Account	No limit

Taxes Applicable for the Sender on Education-Related International Money Transfers

The Indian government levies two taxes on foreign remittances to Europe or any other foreign country. 

1. TCS (Tax Collected at Source)

TCS applies to international money transfers based on the purpose. The TCS-free limit for educational remittances in a financial year is Rs 10 lakhs, irrespective of the source of funds. 5% TCS is applicable on money transfers above Rs. 10 Lakhs sent without using an educational loan.

Mode of Finance	Transfer Below ₹10 Lakhs	Transfer Above ₹10 Lakhs
Education Purposes (financed by an education loan)	Not Applicable	Not Applicable
Education Purposes (financed by other sources)	Not Applicable	5% of the amount above ₹10 lakhs

Also Read: New TCS Proposals on International Money Transfer in Budget 2026

2. GST (Goods and Services Tax)

GST is calculated based on transaction volumes, which are divided into three slabs. The method for calculating the GST value varies for each slab.

Slabs	GST Payable	Minimum Tax to be Paid	Maximum Tax to be Paid
Slab 1 (Upto Rs. 1 lakh)	0.18% of the total amount sent abroad	Rs. 45	Rs. 180
Slab 2 (Rs.1 lakh – Rs.10 lakhs)	Rs.180 + 0.09% of the amount above Rs. 1 lakh to Rs. 10 lakhs	Rs. 180	Rs. 990
Slab 3(Above Rs. 10 lakhs)	Rs. 990 + 0.018% of the amount above Rs. 10 lakhs	Rs. 990	Rs. 10,800

Different Options for Overseas Student Remittance from India

1. Banks

Banks have long been the traditional method for sending money abroad from India. 

PROS	CONS
Wide Accessibility: Offered by most major banks in India	Higher Fees and Exchange Rate: Banks charge more than other options
Secure and Reliable: Regulated by RBI, enabling safe transactions	Longer Transfer Time: Takes 2-3 working days to process
Well-established Networks: Ensures money reaches securely worldwide	Exclusive for account holders: Not available for non-account holders
Lesser Documentation Needs: Banks have KYC documents of their account holders	Lack of dedicated service: Focus spread across multiple banking services other than outward remittance

2. Money Transfer Companies

Unlike banks, money transfer companies specialise in international remittances through online and offline methods.

PROS	CONS
Better Exchange Rates: More competitive than banks	Platform Fees: Extra charges for online transactions
Diverse Service Methods: Available both online and offline	High Charges: Markup and service fees are charged
No Bank Account Needed: Transfer without a bank account	Transfer Limits: Restrictions on the amount sent
Dedicated Service: Foreign fund transfer customers are their only consumers	Long Transfer Time: Often completed within 2-3 days

3. Online Forex Aggregators

Online forex aggregators act as intermediaries, connecting customers with foreign exchange vendors and banks to facilitate international transfers. With the help of their tie-ups, they compare exchange rates in the market and fetch the best rate for customers. 

PROS	CONS
Best Exchange Rates: Most competitive rates after comparison	Limited Availability: Fewer platforms provide this service
Zero Transfer Fees: No service or transfer fees	Requires Bank/UPI Transfer: Must have a bank account for transactions
Available for all: Account holders of any bank can access the service	Less Physical Presence: Fewer in-person service locations
Faster Online Processing: Transfers get completed in 2 days anywhere in India	Longer Documentation: Requires KYC and purpose documents for first-time users

Also Read: Complete Guide to ICICI Globetrotter Student Insurance

How to Send Money for Education from India

1. Find the most suitable service provider by comparing the exchange rates, service charges, processing duration and complexity.
   
2. Submit the necessary KYC documents and the bank details of your child studying abroad to your chosen service provider for verification.
   
3. Transfer the amount to the bank or remittance company using NEFT, RTGS, or online banking.

4. Once the wire transfer is initiated, funds will be credited to the beneficiary’s bank account abroad within 48 working hours.

Best Way to Send Money to Your Child Studying Abroad

ExTravelMoney offers a simple and affordable solution for sending money to your dear ones anywhere around the world. Being a pan-Indian forex aggregator, ExTravelMoney offers:

• Convenience: Send money quickly from anywhere online
• Cheap Exchange Rates: Wholesale exchange rates with a maximum of 0.8% markup
• Zero Platform Fees: No service fee charged, apart from the processing fee charged by your chosen bank
• Forex Expert Guidance: Complete step-by-step assistance by experts on call and chat.

International student transfers can be simple when you know the process, documents, and tax implications involved. Instead of overpaying through traditional channels, switch to a smarter option. Try ExTravelMoney to compare rates and send money abroad quickly, securely, and affordably.

Also Read: 8 Tips for Parents Making Overseas Tuition Payments

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