How to send money to students studying abroad: Tips for parents

Time of India

24-07-2025

For students studying abroad, financial support becomes a crucial factor in ensuring that their education and life overseas continue uninterrupted. As a parent, it can be challenging to find the best and most secure way to send money abroad from India.
In this guide, we will cover how you can do a remittance transfer smoothly while saving on additional charges.
To begin with, let's look at some of the most popular and trusted ways to send money abroad.
Popular Ways to Send Money Abroad
You can send money to your child who is studying overseas in a variety of ways. Following are some of the widely used remittance transfer methods:
Online Money Transfer – Banks and other money transfer services allow you to make secure money transfers.
Forex Card – Students can apply for a forex card; this allows them to make purchases instantly. The amount of a forex card can be reloaded remotely at any time.
Wire Transfers – Required for high-amount remittance transfers. As a parent, you can visit your nearest bank branch for wire transfers abroad.
Cross-Border UPI Payments – Unified Payments Interface (UPI) has not just become a popular payment method in India but is expanding across different countries. You can use it to send money abroad from India to countries such as UAE, Singapore, Bhutan, Nepal, Sri Lanka, France and Mauritius.
Foreign Currency Demand Draft – Also known as FCDD, it is often used for purposes of tuition costs, visa fees as well as immigration expenses. The bank facilitates the payment to the student or the institution.
What to Consider When Sending Money Abroad
To ensure that remittance transfers are successful, there are a few points to consider when you are planning to send money abroad from India:
Understanding the Financial Needs – Plan a budget for the living expenses as per the destination country and other education-related costs.
Choosing a Suitable Transfer Method – When picking a service for remittance transfers, consider aspects such as speed, security and convenience to choose the most appropriate way to send money abroad.
Considering Currency Exchange Rates – Fluctuations in currency exchange rates can affect the amount of money received by the student. If the money transfer is not urgent, think about scheduling your transfers strategically and setting rate alerts.
Evaluating Transfer Fees and Costs – Consider the cost associated with money transfer overseas. Some services can add charges like exchange rate markup, transfer fees, intermediary and recipient bank charges.
Legal and Tax Implications – Ensure that you are well-versed in the legal and tax implications of both sending and receiving money internationally.
How to Pick a Remittance Service
The cost and simplicity of sending money to your child can be greatly impacted by the method you choose for remittance transfers. When selecting the most effective way to send money overseas, keep the following important factors in mind:
Speed of Transfer: Given that students must rely on their finances for both daily expenses and educational costs, this is particularly crucial for them. Select a bank that allows transfers of funds the same day.
Transfer Fees: When sending money abroad from India, certain banks do not charge transfer fees. Receivers should carefully check for all fees and charges associated with remittances.
Exchange Rates - Opt for platforms that offer real-time exchange rates with minimal or no markup. This can help you avoid issues such as a reduction in the amount received.
Supported Currencies and Countries – Ensure the service you choose provides support for transfers to the destination country in the appropriate currency.
Daily and Monthly Transfer Limits – Check if the service provider has set a cap on daily and monthly remittance transfers.
Security and Compliance – Ensure that the transfers are fully compliant with the RBI and FEMA regulations.
Ways to Reduce the Cost of International Money Transfers
When you regularly move funds across borders, even small optimisations can lead to significant savings. Here are a few smart ways to make your international transfers more cost-efficient:
Look for transfer services that offer transparency in terms of pricing for money transfers.
Choose a service that supports a high number of transfers on a daily or monthly basis.
Transfer funds directly from your bank account to avoid unnecessary charges.
Consolidate your remittance to reduce the frequency, avoiding fees for each transfer.
Time your transfer based on favourable exchange rates.
Avoid third-party services that may add hidden fees.
To guarantee that your child receives the entire amount, choose bank-to-bank transfers.
Liberalised Remittance Scheme
Under the Liberalised Remittance Scheme (LRS), you can remit up to USD 250,000 per annum for your child's overseas education and other financial needs. Staying informed about LRS guidelines can help you plan ahead in terms of finances.
Features to look for in a Remittance service
When supporting a child studying abroad, the right remittance service can make a huge difference. Look for a bank offering remittance services:
Full digital access across both mobile and internet banking, allowing payee addition and seamless transfers on both channels
Faster transfers (Same day if submitted before cut-off)
Competitive foreign exchange rates, which can offer better value for higher transfer amounts and help you save more on every transfer
A live, SWIFT-linked beneficiary bank list to minimise errors and reduce transaction failures
A clean, user-friendly interface with options like tracking, resend instructions, and customer support helps
Transfers that ensure full credit to the recipient, with no deductions by intermediary banks
These features can simplify the process, reduce costs, and ensure timely financial support for students overseas.
Conclusion
Supporting your child's education abroad requires more than timely money transfers. It involves choosing efficient and reliable services while staying informed about regulations like LRS. Some platforms also provide assistance with university planning and funding options, helping families navigate the process with greater ease. Consider study abroad services can ensure that your child receives the necessary end-to-end support throughout their education journey.