Getting admission to an international university is an incredible achievement. But for most Indian families, the first real challenge arrives right after. How do you actually send lakhs (or even crores) of rupees to a university overseas, safely, cheaply, and on time?
Terms like SWIFT codes, LRS limits, TCS deductions, and forex margins can feel overwhelming, especially if this is your first time sending money abroad. The good news: the process is well-regulated by the Reserve Bank of India (RBI) and, with the right knowledge, you can transfer funds without surprises or overpaying.
This guide walks you through every step: the legal framework, the tax implications, the best transfer methods, and some smart ways to save money (including getting cashback!) along the way.
💡Key Takeaway
Indian residents can legally send up to USD 250,000 per financial year abroad for education under the RBI's Liberalised Remittance Scheme. Most tuition payments fall comfortably within this limit.
Understanding the RBI's Liberalised Remittance Scheme (LRS)
The Liberalised Remittance Scheme (LRS) is the RBI's framework that allows every resident Indian individual (including minors) to remit up to USD 250,000 per financial year (April–March) abroad for approved purposes.
Education is one of the most common and well-supported purposes under LRS. Under the scheme purpose code S0305 (Education), you can remit money for:
- University tuition fees
- Hostel and accommodation fees
- Living and maintenance expenses
- Exam fees (GRE, IELTS, application fees)
- Travel tickets for the student
- Caution/security deposits (e.g. GIC for Canada)
Family Pooling: A Useful Trick for Large Fees
If the annual fee exceeds USD 250,000 (which is rare but possible for US medical or law programmes), parents can pool their individual LRS quotas. For example, the father remits USD 250,000 and the mother remits the remaining amount under her own quota, using the same fee invoice as documentation.
⚠️LRS Applies to Cards Too
From FY 2025–26, all international debit, credit, and forex card spends also count towards your USD 250,000 annual LRS limit per PAN. Plan your total remittances accordingly.
TCS Rules: How Much Tax Will You Pay?
Tax Collected at Source (TCS) is an advance tax collected by your bank or remittance provider when you send money abroad under LRS. It is not a permanent cost. It can be adjusted against your income tax liability when you file your ITR, or claimed as a refund if your total tax liability is lower.
✅Good News from Budget 2025
The TCS-free threshold was raised from ₹7 lakh to ₹10 lakh per financial year. Remittances up to ₹10 lakh in a year attract zero TCS. Additionally, education remittances funded by a Section 80E education loan now attract 0% TCS.
TCS Rate Table for Education Remittances (FY 2025–26)
Note: TCS is collected on the amount exceeding ₹10 lakh. Applicable TCS can be reclaimed while filing your Income Tax Return (ITR).
How to Verify TCS Was Correctly Deducted
- Form 27D: issued by your bank, showing the TCS amount deducted
- Form 26AS: downloadable from the Income Tax e-filing portal, reflects TCS against your PAN
- Annual Information Statement (AIS): available on the IT portal, lists all TCS deductions
Documents You Need Before Transferring
Indian banks and authorised remittance providers are required to verify the purpose of your transfer. Keep these documents ready before initiating any remittance:
🛂Valid passport (student)
💳PAN card of remitter
🎓University admission letter
🧾Original fee invoice / demand letter
✈️Student visa (if available)
📄Form A2 (remittance declaration)
🏦Education loan sanction letter (if applicable)
🆔Aadhaar of remitter
📌Pro Tip: Get the Fee Invoice Right
The fee invoice from the university must clearly show the breakdown of tuition, hostel, and other charges. Banks use this to classify the transfer under S0305 (Education), which ensures the correct TCS rate is applied.
Payment Methods Compared
There are several ways to send money for international education fees. Each has its trade-offs on cost, speed, and convenience:
🏦 Bank Wire Transfer (SWIFT)
The most traditional way to send money abroad. Major Indian banks like HDFC Bank, State Bank of India, ICICI Bank, and Axis Bank offer international remittances through the SWIFT network. A reliable option for large tuition payments, though fees and exchange rates can be costly.
✔️ Trusted by banks worldwide
💸 Fees usually range between ₹1,000–₹2,500
⏳ Transfers typically take 3–5 business days
💱 Online Fintech Platforms / Wise
Digital platforms like Wise offer international transfers using mid-market exchange rates with transparent fees. Often one of the cheapest and fastest options for students sending money abroad. Fully RBI-authorised and easy to use online.
✔️ Better exchange rates
💸 Lower and transparent fees
⚡ Transfers can arrive within minutes to a few days
🌐 Flywire / University Payment Portals
Many universities partner with Flywire to help international students pay tuition securely. It supports payments to 2,400+ institutions worldwide and offers real-time tracking from payment initiation to university confirmation.
✔️ Direct university-linked payments
🔒 Safe, secure, and fully trackable
🌍 Designed specifically for international students
💳 Forex Card
A prepaid multi-currency card that students can use for daily expenses abroad. Convenient after arriving in your study destination, but not usually the best choice for paying large tuition fees because of loading charges and conversion fees.
✔️ Useful for everyday spending abroad
💸 May include issuance and conversion charges
🎓 Better for living expenses than tuition payments
📬 Demand Draft (DD)
A traditional payment method still accepted by some universities. The bank issues a foreign-currency draft that must be physically couriered. Processing and clearance can take several weeks, making it one of the slowest options available.
✔️ Accepted by some institutions
⏳ Can take up to 2–3 weeks to clear
📦 Requires physical delivery and paperwork
Step-by-Step: How to Send the Money
Here is the standard process for sending a tuition fee from India to an overseas university, whether you use a bank or a fintech platform:
1️⃣ Collect Your Documents
Before starting your payment, keep all required documents ready — including your university fee invoice, admission letter, student passport, PAN card, and education loan sanction letter (if applicable). Having these prepared helps avoid delays and ensures the correct TCS classification.
✔️ Keeps the process smooth and hassle-free
📄 Required for compliance and verification
🎓 Helps avoid payment delays
2️⃣ Choose the Right Transfer Method
Compare exchange rates, transfer fees, and processing times across your bank, Wise, or your university’s Flywire portal. Even a small difference in exchange rates can save you thousands of rupees on large tuition payments.
✔️ Compare rates before paying
💸 Lower fees can mean bigger savings
📈 Small exchange rate differences matter
3️⃣ Initiate the Transfer & Submit Form A2
Complete the transfer process by submitting Form A2 — the RBI remittance declaration — along with your supporting documents to your bank or remittance provider. Make sure the purpose code S0305 (Education) is correctly mentioned. Many online platforms handle this automatically.
✔️ Mandatory for overseas education payments
📑 Ensures RBI compliance
⚡ Online providers simplify the process
4️⃣ Pay TCS (If Applicable)
If your total foreign remittances exceed ₹10 lakh in a financial year, TCS (Tax Collected at Source) may apply. The provider collects this amount during the transfer, but it is not a permanent expense — you can usually claim it back while filing your Income Tax Return (ITR).
✔️ Applicable above RBI thresholds
💰 Claimable during ITR filing
📊 Important for tax records
5️⃣ Track Your Payment
After initiating the transfer, use the transaction reference number or Flywire tracking dashboard to monitor your payment status. Once completed, share the payment confirmation with your university’s finance department for faster processing.
✔️ Real-time payment visibility
🔒 Confirms safe delivery of funds
🎓 Helps avoid university registration delays
6️⃣ Save All Payment Receipts
Keep copies of transfer receipts, bank statements, and TCS certificates (Form 27D) safely stored. These documents may be required later for visa applications, income tax filing, or any future verification requests.
✔️ Useful for visa and tax purposes
📂 Important financial proof
🧾 Helps resolve future queries quickly
Earn Cashback on Your University Fee with Inforens and Flywire
Here's something most students don't know: you can actually earn cashback when paying your tuition fees. Inforens is a study-abroad mentorship and support platform that has partnered with Flywire, one of the world's leading education payment platforms, to give international students a smarter, more rewarding way to pay fees.
Paying your tuition fees abroad is already a major expense — so why not earn something back? Through the Inforens and Flywire partnership, international students can now receive cashback on tuition fee payments made via Flywire through the Inforens platform.
For large university payments, even a small percentage can mean significant savings returned directly to you — with no extra paperwork or hidden conditions.
💸 Cashback on Tuition Payments
Earn 0.2% cashback up to £100 when you pay your university fees through Flywire via Inforens.
✔️ Direct cashback on eligible tuition transfers
💰 Real savings on payments you were already making
🎓 Designed specifically for international students
📩 Retroactive Cashback Claims
Already completed your payment through Flywire? You may still be eligible. Simply email your payment receipt within 5 days to claim your cashback.
✔️ Simple claim process
📄 Receipt-based verification
⏳ Must be submitted within the eligibility window
🌍 Accepted by 2,400+ Universities Worldwide
Flywire is trusted by thousands of institutions globally, making it one of the most widely accepted student payment platforms for international education.
✔️ Supported by universities across the UK, Europe, USA, Canada, and more
🌐 Global payment coverage
🎓 Built for international education payments
🔒 Safe, Secure & Fully Trackable
Track your payment from India all the way to your university account with real-time updates and payment confirmations.
✔️ End-to-end payment tracking
🔐 Secure international transfers
📲 Transparency throughout the process
🎯 Claim Your Tuition Fee Cashback Today
The Smart Way to Handle Money Abroad: Open a Wise Account
Once you're abroad, you'll need a reliable, low-cost way to manage your money. Whether it's receiving funds from home, paying rent, or handling day-to-day expenses, Wise is one of the most popular choices for international students, and Inforens has made it even better.
Sending money internationally as a student can get expensive very quickly because of hidden bank charges and poor exchange rates. That’s why Inforens has partnered with Wise to help students transfer money abroad easily, securely, and at much lower costs.
Wise uses the real mid market exchange rate, the same one you see on Google, with transparent fees and no hidden markups. It is fully RBI authorised and trusted by millions of users worldwide. On top of that, Inforens students get exclusive rewards and cashback benefits.
💸 Free International Transfers
Using the Inforens referral link, students can send up to £500 internationally with zero transfer fees.
✔️ Save money on transfer charges
🌍 Perfect for students moving abroad
⚡ Fast and hassle free transfers
🎁 Get £10 Cashback
Spend £200 using your Wise account and receive £10 cashback through Inforens.
✔️ Extra savings for international students
💰 Simple and easy reward process
📲 Great for everyday international spending
💳 Free Wise Debit Card
Students already studying abroad can also get a free Wise debit card delivered in supported countries like the UK.
✔️ Spend in multiple currencies easily
🌎 Useful for daily expenses abroad
💸 Avoid unnecessary international card charges
💡 Please note: Wise debit cards are not issued in India. They are available only in supported countries after arrival.
📈 Real Exchange Rates with No Hidden Charges
Unlike many traditional banks, Wise gives you the actual exchange rate without hidden forex markups. That means more of your money reaches where it needs to go.
✔️ Transparent pricing
💱 Better exchange rates
🔍 No hidden conversion surprises
Whether you are paying rent abroad, managing tuition expenses, handling multiple currencies, or sending money back home, Wise makes international banking much simpler for students.
🎯 Open Your Wise Account Today and Start Saving on International Transfers
Conclusion
Studying abroad is a big investment, and managing your international payments smartly can save you a significant amount of money and stress. By understanding RBI rules, comparing transfer options, and using trusted platforms like Flywire and Wise, students can make secure and cost-effective payments with confidence.
With the right planning and student-friendly benefits like cashback and better exchange rates through Inforens, you can focus more on your education and less on financial worries.