A complete knowhow on sending money to your child studying abroad

It is considered a matter of pride in India to send their child to the best universities abroad for further studies and why not? Studying and living abroad is a completely different experience in itself, exciting to say the least. However, quite a few things are to be taken into consideration before leaving on that delightful and thrilling journey other than achieving the desired score or simply being ready to embark upon the journey.

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According to the latest RBI report, remittances sent abroad for education form a huge chunk of the money sent there. One of the leading banks in the world conducted a survey that showed Indian parents being the most prompt and willing to send their child abroad for further studies with the figure standing at a staggering 88 percent with Turkey, Malaysia and China in tow.

Considering these facts and figures it is important that other factors, necessary to get started with the dream education abroad, are also taken care of, with the most important being, financial planning. It is important for both the parents as well as the child to know the legal and regulatory matters before proceeding with the application.

Also read: Qualifying Exams to Study Abroad

How to send money abroad?

With new technology coming to light in recent years, there are many methods through which you can send money to your child studying abroad, hassle free. A small list is given below,

• Wire transfer

• Demand draft

• NEFT (National Electronic Funds Transfer)

• RTGS (Real Time Gross Settlement)

• Cheques (subject to clearance)

Also read: Education Loans to Study Abroad

Documents needed to make the transfer

You need to be eligible to make the transfer, for which you need to have a few documents (original) in place which are listed below.

• Valid Passport

• Student Visa

• Offer Letter from the University

• PAN Card

The maximum amount that can be transferred for education purpose should not be more than $250,000.

Once all the documents are submitted, due to fluctuations in the currency rate, it is advisable to book a rate at which you want to make the transfer. This can be done only in case of cash payments however; cheque payments are to be done on fluctuating currency rate.

Small pointers

• An electricity bill or a phone bill will be required as permanent residency proof in case the identity proof has a temporary address on it.

• Intermediary banks could impose a transaction charge in case of an international wire transfer. This can however be paid in Indian currency in advance.

All this information should help you plan your journey better and make it easier on the parents and the child before the whole process begins. Just keep these things in mind and it will make the journey and the experience enjoyable and stress-free.

Also read: Best Universities in the World