5 Ways to send education fees abroad

Date: 1st November 2024 | Read time: 5 Minutes

For many students, going to school in another country is a dream. However, among the challenges for parents and guardians is ensuring that the fees paid go directly towards paying the education fees on time. Delays in payments may attract penalties or hinder the admission of a student. To avoid these problems, it's necessary to be up to date with the best ways of sending education fees overseas effectively.

Quickly, the first activity for foreign money transfer would be to choose a fast and secure international money transfer service. AU Remit by AU Small Finance Bank is an excellent choice for Indians transferring money cross-border. This enables the user to quickly send money to more than 40 countries across the world, ensuring that your child's education fees get paid on time.

It is always important to make your fund transfer before the fee due date. Most of the international transfer services, such as AU Remit, take approximately 1-2 working days to affect a fund transfer. You would want to make a transfer a few days before the due date, so even if there might be some checks or unexpected delays, the payment would still reach the institution in time.

Exchange rates can lead to considerable differences in the amount received by the beneficiary when transferring funds internationally. To avoid surprises, check the current exchange rate before proceeding with the transfer and ensure that you’re sending the correct amount.

Additionally, if your remittances exceed INR 7 lakh in a financial year, TCS on foreign remittance will apply. For education-related remittances, the TCS rate is 5% on amounts above this threshold. However, if the education payment is made using an education loan, a reduced TCS rate of 0.5% is applicable on the amount above INR 7 lakh.

AU Remit helps save time and make every step possible without paper and pencil from your home. This avoids long waits that often occur with regular bank processes. Furthermore, this option enables you to track the status of your transfer in real-time so that you can ensure that the institution receives fees on time.

[Also Read: How To Use Your Indian Savings Account to Send Money Overseas]

Always ensure that all correct documents are sent with education fees to another country, including fee invoices, an admission letter, or whatever other important documents may be required. In this way, there is no delay due to compliance checking because these documents can be uploaded at the time of making a transaction through AU Remit.

Keeping the studies of your child running without any break requires sending education fees in time to another country. By choosing a reliable service for sending money abroad such as AU Remit, planning your transfers in advance, and knowing the extra costs like TCS on foreign remittance, you can ensure that payments are made smoothly and well in time.