{"id":8424,"date":"2026-03-27T15:14:16","date_gmt":"2026-03-27T15:14:16","guid":{"rendered":"https:\/\/www.extravelmoney.com\/blog\/?p=8424"},"modified":"2026-03-27T15:14:19","modified_gmt":"2026-03-27T15:14:19","slug":"send-money-abroad-for-education","status":"publish","type":"post","link":"https:\/\/www.extravelmoney.com\/blog\/send-money-abroad-for-education\/","title":{"rendered":"How to Send Money Abroad for Your Child’s Education"},"content":{"rendered":"\n

How to Send Money Abroad for Your Child’s Education<\/h1>\n\n\n\n
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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.<\/p>\n\n\n\n

Also Read: What Banks Don\u2019t Tell You When Taking Overseas Education Loan<\/a><\/strong><\/p>\n\n\n\n

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Purposes That Fall Under Educational Money Transfers<\/h2>\n\n\n\n
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  1. Tuition fee payment<\/li>\n\n\n\n
  2. Living expenses<\/li>\n\n\n\n
  3. Canadian GIC Account opening and money transfer<\/a><\/li>\n\n\n\n
  4. German Blocked Account opening and money transfer<\/a><\/li>\n<\/ol>\n\n\n\n
    Please Note: <\/strong>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 \u2018maintenance of close relatives\u2019. The documentation and tax regulations differ for both.<\/pre>\n\n\n\n
    <\/div>\n\n\n\n
    Required Documents for Educational Remittances<\/h2>\n\n\n\n
    The beneficiary documents required for education-related international remittances are as follows:<\/p>\n\n\n\n
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    1. Passport<\/li>\n\n\n\n
    2. PAN Card<\/li>\n\n\n\n
    3. University\/College Offer or Acceptance Letter<\/li>\n<\/ol>\n\n\n\n
      The sender documents needed are mentioned below:<\/p>\n\n\n\n
        \n
      1. PAN Card<\/li>\n\n\n\n
      2. Aadhar Card<\/li>\n<\/ol>\n\n\n\n
        <\/div>\n\n\n\n
        Required Beneficiary Details<\/h2>\n\n\n\n
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        1. Beneficiary Address<\/li>\n\n\n\n
        2. Bank Name<\/li>\n\n\n\n
        3. Bank Address<\/li>\n\n\n\n
        4. Account Number<\/li>\n\n\n\n
        5. SWIFT Code<\/li>\n\n\n\n
        6. Sort Code<\/li>\n\n\n\n
        7. IBAN Number<\/li>\n<\/ol>\n\n\n\n
          <\/div>\n\n\n\n
          How Much Money Can Be Sent for Education from India<\/h2>\n\n\n\n
          The maximum transferable amount for study-related remittances abroad in a financial year depends on the residential status of the sender in India.<\/p>\n\n\n\n
          For NRIs, gift remittance falls under the NRI repatriation purpose of international money transfer.<\/p>\n\n\n\n
          Residential Status<\/strong><\/td>Account Type<\/strong><\/td>Maximum Remittance Limit<\/strong><\/td><\/tr>
          Resident Indian<\/td>Savings Account<\/td>USD 2,50,000 equivalent<\/td><\/tr>
          Non-Resident Indian<\/td>NRO Account<\/td>USD 1 million equivalent<\/td><\/tr>
          <\/td>NRE Account<\/td>No limit<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
          <\/div>\n\n\n\n
          Taxes Applicable for the Sender on Education-Related International Money Transfers<\/h2>\n\n\n\n
          The Indian government levies two taxes on foreign remittances to Europe or any other foreign country. <\/p>\n\n\n\n
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          1. TCS (Tax Collected at Source)<\/strong><\/li>\n<\/ol>\n\n\n\n
            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.<\/p>\n\n\n\n
            Mode of Finance<\/strong><\/td>Transfer Below \u20b910 Lakhs<\/strong><\/td>Transfer Above \u20b910 Lakhs<\/strong><\/td><\/tr>
            Education Purposes (financed by an education loan)<\/td>Not Applicable<\/td>Not Applicable<\/td><\/tr>
            Education Purposes (financed by other sources)<\/td>Not Applicable<\/td>5% of the amount above \u20b910 lakhs<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
            Also Read: New TCS Proposals on International Money Transfer in Budget 2026<\/a><\/strong><\/p>\n\n\n\n
              \n
            1. GST (Goods and Services Tax)<\/strong><\/li>\n<\/ol>\n\n\n\n
              GST is calculated based on transaction volumes, which are divided into three slabs. The method for calculating the GST value varies for each slab.<\/p>\n\n\n\n
              Slabs\u00a0<\/strong><\/td>GST Payable<\/strong><\/td>Minimum Tax to be Paid<\/strong><\/td>Maximum Tax to be Paid<\/strong><\/td><\/tr>
              Slab 1 (Upto Rs. 1 lakh)<\/td>0.18% of the total amount sent abroad<\/td>Rs. 45<\/td>Rs. 180<\/td><\/tr>
              Slab 2 (Rs.1 lakh \u2013 Rs.10 lakhs)<\/td>Rs.180 + 0.09% of the amount above Rs. 1 lakh to Rs. 10 lakhs<\/td>Rs. 180<\/td>Rs. 990<\/td><\/tr>
              Slab 3(Above Rs. 10 lakhs)<\/td>Rs. 990 + 0.018% of the amount above Rs. 10 lakhs<\/td>Rs. 990<\/td>Rs. 10,800<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
              <\/div>\n\n\n\n
              Different Options for Overseas Student Remittance from India<\/h2>\n\n\n\n
              1. Banks<\/strong><\/p>\n\n\n\n
              Banks have long been the traditional method for sending money abroad from India. <\/p>\n\n\n\n
              PROS<\/strong><\/td>CONS<\/strong><\/td><\/tr>
              Wide Accessibility:<\/strong> Offered by most major banks in India<\/td>Higher Fees and Exchange Rate:<\/strong> Banks charge more than other options<\/td><\/tr>
              Secure and Reliable:<\/strong> Regulated by RBI, enabling safe transactions<\/td>Longer Transfer Time:<\/strong> Takes 2-3 working days to process<\/td><\/tr>
              Well-established Networks<\/strong>: Ensures money reaches securely worldwide<\/td>Exclusive for account holders: <\/strong>Not available for non-account holders<\/td><\/tr>
              Lesser Documentation Needs:<\/strong> Banks have KYC documents of their account holders<\/td>Lack of dedicated service: <\/strong>Focus spread across multiple banking services other than outward remittance<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
              <\/div>\n\n\n\n
              2. Money Transfer Companies<\/strong><\/p>\n\n\n\n
              Unlike banks, money transfer companies specialise in international remittances through online and offline methods.<\/p>\n\n\n\n
              PROS<\/strong><\/td>CONS<\/strong><\/td><\/tr>
              Better Exchange Rates<\/strong>: More competitive than banks<\/td>Platform Fees<\/strong>: Extra charges for online transactions<\/td><\/tr>
              Diverse Service Methods: <\/strong>Available both online and offline <\/td>High Charges:<\/strong> Markup and service fees are charged<\/td><\/tr>
              No Bank Account Needed<\/strong>: Transfer without a bank account<\/td>Transfer Limits<\/strong>: Restrictions on the amount sent<\/td><\/tr>
              Dedicated Service: <\/strong>Foreign fund transfer customers are their only consumers<\/td>Long Transfer Time<\/strong>: Often completed within 2-3 days<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
              <\/div>\n\n\n\n
              3. Online Forex Aggregators<\/strong><\/p>\n\n\n\n
              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. <\/p>\n\n\n\n
              PROS<\/strong><\/td>CONS<\/strong><\/td><\/tr>
              Best Exchange Rates<\/strong>: Most competitive rates after comparison<\/td>Limited Availability<\/strong>: Fewer platforms provide this service<\/td><\/tr>
              Zero Transfer Fees<\/strong>: No service or transfer fees<\/td>Requires Bank\/UPI Transfer<\/strong>: Must have a bank account for transactions<\/td><\/tr>
              Available for all<\/strong>: Account holders of any bank can access the service<\/td>Less Physical Presence<\/strong>: Fewer in-person service locations<\/td><\/tr>
              Faster Online Processing<\/strong>: Transfers get completed in 2 days anywhere in India<\/td>Longer Documentation<\/strong>: Requires KYC and purpose documents for first-time users<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
              Also Read: Complete Guide to ICICI Globetrotter Student Insurance<\/a><\/strong><\/p>\n\n\n\n
              <\/div>\n\n\n\n
              How to Send Money for Education from India<\/h2>\n\n\n\n
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              1. Find the most suitable service provider by comparing the exchange rates, service charges, processing duration and complexity.
                <\/li>\n\n\n\n
              2. Submit the necessary KYC documents and the bank details of your child studying abroad to your chosen service provider for verification.
                <\/li>\n\n\n\n
              3. Transfer the amount to the bank or remittance company using NEFT, RTGS, or online banking.<\/li>\n<\/ol>\n\n\n\n
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                1. Once the wire transfer is initiated, funds will be credited to the beneficiary’s bank account abroad within 48 working hours.<\/li>\n<\/ol>\n\n\n\n
                  <\/div>\n\n\n\n
                  Best Way to Send Money to Your Child Studying Abroad<\/h2>\n\n\n\n
                  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:<\/p>\n\n\n\n