Sending Money to Germany? The Transfer Mistakes That Delay Your Student Visa

Germany's visa office requires €11,904 in a blocked account to consider your file. That money needs to leave India, comply with RBI guidelines, and reach the correct German account with the correct reference. If you miss a step, your visa will be delayed.

This page answers three questions.

1. How much money should you show? As of September 2024, the DAAD lists €992 a month, or €11,904 a year. Read it on the DAAD finance page.
2. How do you send it? Through an RBI-authorised forex dealer under the Liberalised Remittance Scheme (LRS), into a Sperrkonto you open before you apply.
3. Does Tax Collected at Source (TCS) apply? Nil up to ₹10 lakh in a financial year. Above that, 2% on self-funded education.

You also get the mistakes that delay visa files and the one declaration that sets your tax bill.

What are you sending money for?

A German student file involves separate payments, and each one goes to a different place.

1. The blocked account holds €11,904 for the first year. The provider releases €992 a month once you arrive.
2. Semester contributions range from €100 to €350 and are paid every semester.
3. Tuition is zero at most public universities. TUM charges non-EU students between €2,000 and €6,000 a semester from winter 2024/25. Private universities charge more. Read your offer letter before you plan the transfer.

Open the blocked account before you apply. Here is a mission’s visa checklist.

How does LRS work when parents send the money?

LRS lets every resident individual, minors included, remit up to USD 250,000 per financial year. The year runs from April to March. Each parent has a separate limit. The transfer counts against whoever sends it, under their PAN.

Tell the forex dealer the true purpose of the transfer. The declared purpose sets your TCS rate.

What does TCS cost in rupees?

1. Nil on the first ₹10 lakh of LRS remittances in a financial year.
2. 2% on the amount above ₹10 lakh for self-funded education.
3. Nil when an education loan from a financial institution funds the remittance.
4. 20% on the amount above ₹10 lakh for other purposes.

The ₹10 lakh threshold counts every remittance in the year. Splitting one transfer into two does not avoid it. TCS is tax paid in advance, so you claim it as credit when you file your return.

What slows a transfer down?

Four things can delay a transfer.

1. Beneficiary details: A wrong name, IBAN, or reference code means the provider cannot match the payment to your file. Copy them from the provider’s instructions character by character.
2. Documents: Expect PAN, Form A2, and proof of purpose, such as the provider’s payment request or your admission letter.
3. Rate and charges: Request the final rate and fees, then make a comparison based on that.
4. Timing: Bank holidays do not move visa appointments. Send the money early.

What is LuLu Forex’s process for student transfers?

LuLu Forex is an RBI-authorised forex dealer and a local partner of Flywire in India for education payments. The Flywire route is for students whose universities are registered with Flywire. The same provider sells student forex cards, physical foreign currency, and travel insurance.

The online process is as follows: sign in with a mobile OTP, enter the amount, country, and purpose, fill in the sender and beneficiary information, upload documents, fill out the declaration after Aadhaar verification, and pay. Branches handle the same remittance in person.

START YOUR REMITTANCE ONLINE with LuLu Forex.

FAQs

What is a blocked account in Germany?

A Sperrkonto holds a full year of living costs. After you arrive, the provider releases a fixed monthly amount, €992 for student visa applicants today.

Can I open it after I reach Germany?

Open it before you apply. German missions ask for the provider’s confirmation stating the total deposited and the monthly amount.

Does TCS apply if I take an education loan?

No TCS applies when a financial institution’s loan funds the remittance.

Which documents do I need?

PAN, Form A2, and proof of purpose. LuLu Forex’s online flow also asks for Aadhaar verification and a declaration.

Does the blocked amount cover tuition?

No. It covers living costs. Tuition and the semester contribution go to the university as their own payments.

Is LuLu Forex authorised by the RBI?

Yes. LuLu Forex operates in India as an RBI-authorised forex dealer.

Why send it through LuLu Forex?

Send €11,904 under LRS, declare the true purpose, and keep your documents ready. LuLu Forex offers RBI authorisation, a partnership with Flywire for tuition payments, both online and branch options, and access to student forex cards and travel insurance from a single provider.

Contact LuLu Forex and get your Germany transfer quoted today.