HSBC India has introduced a new service allowing customers to easily pay for foreign education expenses. Through this facility, customers can directly transfer funds to over 600 universities in countries such as the US, UK, Canada, Hong Kong, and Australia. Notably, HSBC India does not charge any fees for using this service, making it both convenient and cost-effective.
Meeting the Needs of Parents Planning Overseas Education
As the number of students pursuing education abroad increases, parents need efficient solutions for managing payments. HSBC India’s global education payment service provides a seamless method for handling various expenses. These include tuition, accommodation, healthcare, and insurance. According to an HSBC study, 78% of high-net-worth Indian parents plan to send their children abroad for education or already have a child studying overseas. This new service allows them to easily transfer funds from the HSBC India mobile banking app.
Key Features of the Service
- Direct University Payments: HSBC India customers can transfer money to pre-verified university accounts in five major study destinations.
- Comprehensive Coverage: Payments cover a range of costs, such as tuition, housing, and healthcare.
- Simple Process: Customers can securely upload documents and complete payments through the app.
- Quick Processing: Transfers typically take between one and five working days.
- Adherence to LRS Limits: Payments comply with the Liberalised Remittance Scheme, which allows up to $250,000 per financial year for education expenses.
Loan Options for Students
In addition, students can apply for education loans through the platform. However, loans are subject to a 0.5% tax collected at source (TCS) under the amended tax rules of 2023. For other educational remittances over ₹7 lakh, a 5% TCS rate applies. Nonetheless, customers can claim credit for this in their income tax returns.
No Hidden Fees
HSBC does not charge any fees for these transfers. However, taxes may apply depending on the recipient’s country and the currency. You can view an estimate of the taxes when making the transfer.
Handling Transfer Issues
Occasionally, transfers may be rejected due to incorrect details or cross-border restrictions. If this happens, customers should contact their relationship manager or nearest HSBC branch. To reverse a transfer, you must notify customer service within three to five working days.
Conclusion
HSBC India’s global education payment service offers a streamlined, cost-effective way to manage overseas education costs. With no transfer fees and broad coverage, this facility is an excellent solution for parents and students alike.
