Sending Money Abroad for Studies from India 2025
A complete guide to transferring money from India for tuition and living costs — RBI regulations, LRS limits, best services, exchange rates, and how to minimize transfer fees as an Indian student's family.
Get Free Study Abroad GuidanceRBI Liberalised Remittance Scheme (LRS) — Key Facts
$250,000 Annual Limit
Under LRS, an Indian resident can remit up to USD 250,000 per financial year for education abroad — covering tuition, accommodation, and living costs without special RBI approval.
TCS on Remittances
From Oct 2023, remittances above ₹7 lakh/year attract 5% TCS (Tax Collected at Source). Amount is refundable when filing income tax returns — not an additional cost, just a temporary withholding.
University Direct Transfer
Tuition payments can be sent directly to foreign universities via AD category banks (HDFC, ICICI, SBI, Axis). Carry the university invoice and fee demand letter.
Form A2 Requirement
All foreign remittances require Form A2 (available at your bank). For education purposes, also carry university admission letter and fee structure as supporting documents.
Best Ways to Send Money Abroad for Studies
| Service | Transfer Fee | Exchange Rate | Speed | Best For |
|---|---|---|---|---|
| Wise (TransferWise) | 0.5–1.5% | Mid-market rate | 1–2 days | Regular transfers, living expenses |
| HDFC ForexPlus | 1–2% | Bank rate | Same day | Tuition wire transfers |
| BookMyForex | 0.5–1% | Live market rate | 2–3 days | Large transfers, rate locking |
| InstaReM / Niyo | 0.25–1% | Near mid-market | 1–2 days | Student everyday transfers |
| SBI (State Bank) | 1.5–3% | Bank rate | 2–5 days | Students with SBI accounts |
Money Transfer FAQ
What is TCS on education remittances and can I get it back?
TCS (5% on remittances above ₹7 lakh/year) is collected by your bank at source. It is fully refundable when you (or your parents) file their annual income tax return — it reduces the net tax liability.
Can parents send money directly to foreign universities?
Yes. Under LRS, parents can remit tuition fees directly to foreign universities. Provide the university's SWIFT code, account details, and a copy of the fee demand letter to your bank.
Is Wise legal for sending education remittances from India?
Yes. Wise operates under RBI/AD category bank authorization. All remittances through Wise are LRS-compliant. You must provide Form A2 details and purpose of transfer (education).
How much should I send at a time to minimize fees?
Send in fewer, larger transfers to minimize per-transaction fees. For living expenses, sending monthly amounts of $500–$1,000 via Wise or InstaReM is cost-effective.
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