Now, Indians looking to simplify payments for their children’s education abroad have a new option. HSBC India on Monday launched its Global Education Payments service, allowing customers to pay tuition fees directly to over 600 international universities through its mobile banking app.
It allows students to choose a country, or university, and submit payments securely through the app, HSBC claimed.
“This is a cost-effective, transparent, and completely digital solution,” said Sandeep Batra, Head of Wealth and Personal Banking at HSBC India. He added that the new feature ensures a secure, streamlined process with reduced remittance costs compared to other international payment options.
According to a report by HSBC, 78% of wealthy Indian parents either want to send their children abroad for education or already have a child studying overseas. The Global Education Payments system is expected to support this large group by providing pre-verified university account details, making the payment process faster and less prone to errors. Families can also add student details, upload loan documents, and make payment requests instantly.
What does the service cover?
The service covers direct transfers to universities in the US, UK, Canada, Hong Kong, and Australia. It’s not just for tuition fees – payments can also be made for accommodation, healthcare, insurance, and other university-related expenses. However, all payments are subject to limits set by the Liberalized Remittance Scheme (LRS) and other banking regulations.
Additionally, HSBC has integrated support for education loans, allowing customers to benefit from a reduced tax collected at source (TCS) rate of 0.5% if the funds come from an education loan under 80E entities. Otherwise, a TCS rate of 5% applies for remittances.
How does it work?
If you’re a customer looking to make payments using HSBC’s Global Education Payments service, here’s how it works:
1. Log into your HSBC India mobile banking app.
2. Select ‘Move Money’ and then ‘Send money internationally.’
3. Choose a country or territory and enter the amount you wish to send.
4. Add the university’s pre-loaded account details.
5. Upload any necessary student or loan documents.
6. Review the details and hit ‘Confirm.’
Once you’ve set up a recipient, making future transfers will be even easier. The app also allows customers to select the currency they wish to transfer, with options ranging from US dollars to British pounds and Australian dollars.
More than just education payments
HSBC’s Global Education Payments launch is part of a broader push to expand their international offerings. The bank is also offering other services for customers bound for foreign countries, including:
Global account opening before students arrive at their destination.
A single view of all HSBC accounts across countries.
Competitive Global Money Transfers.
Portability of HSBC credit history for applying for credit cards abroad.
Access to global wealth management options.
For customers using the service, TCS is automatically charged at the time of the transaction. The 5% TCS applies to all education payments, except in cases where the source of funds is an education loan, in which case the rate is reduced to 0.5%.
Key features of the service:
1. Direct transfers to 600+ international universities.
2. Covers expenses like tuition, accommodation, and healthcare.
3. Available in five countries, including the US, UK, Canada, Hong Kong, and Australia.
4. Reduced TCS rate for education loan-funded transfers.
5. Easy, digital payments through the HSBC mobile app.
Supported currencies include:
United States dollar (USD)
British pound sterling (GBP)
Australian Dollar (AUD)
Canadian dollar (CAD)
Euro (EUR)
And many more, including the UAE dirham, Swiss franc, and Japanese yen.
First Published: Sep 17, 2024 | 1:14 PM IST
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