If you are funding your international education through an Indian education loan, Flywire provides secure and authorized pathways to ensure your tuition is delivered safely. Please review the frequently asked questions below regarding supported banks, required documents, taxes, and refunds.
Can I use an Indian education loan (from non-SBI banks like HDFC, ICICI, or Credila)?
Yes. When creating your payment request, select the "Domestic Bank Transfer in Indian Rupees (INR)" option. Enter the primary borrower or co-borrower's PAN details. After booking, download your Flywire payment instructions, which include an official authorization letter. Present this document to your bank so they can process the disbursement. Please ensure your bank sends the funds exactly under the PAN cardholder's name entered on Flywire to avoid processing delays.
How is paying with an "SBI Education Loan" different from other banks?
Flywire has a direct integration with the State Bank of India (SBI). If you have an SBI loan, select the dedicated "SBI Education Loan in INR" method. With this method, SBI handles all compliance checks (KYC and LRS) directly at their branch. You do not need to upload any documents to the Flywire website; you only need to take your Flywire payment instructions to your local SBI branch.
What is a Loan Disbursement Statement, and why is it required?
A Loan Disbursement Statement (or Letter) is an official document from your lender confirming that funds have been released for your education. It is required to verify the source of funds and ensure the correct TCS (Tax Collected at Source) rate is applied.
The statement must include:
- Loan Amount & Date: The total funds disbursed and the date of transfer.
- Purpose: Confirmation that the loan is for "Education" purposes.
- Borrower & Lender Details: Name of the borrower and the financial institution.
- Account Info: Details of the account to which the funds were disbursed.
Will I be charged TCS or other fees on my education loan?
If your loan is from a recognized financial institution (under Section 80E), the TCS rate is generally 0%.
Please note that your bank will still charge their own processing fees and applicable GST. Banks typically deduct these administrative fees directly from your personal savings account rather than the loan amount. Ensure you have sufficient funds in your savings account before visiting the bank to request the disbursement.
Why does my payment status still show as "Pending" or "Waiting for Funds"?
This status means your bank is still processing the loan disbursement and has not yet sent the funds to Flywire. We recommend contacting your loan officer or bank branch directly to check on the transfer. Once the bank releases the funds and Flywire receives them, your payment status will automatically update.
How do refunds work if I paid using an education loan?
You must first request the refund directly from your educational institution. Once they approve it and return the money to Flywire, we will securely route the funds back to the Indian bank that issued your loan.
Note: Indian banks often place a temporary hold on refunded loan amounts. If you are notified that your refund was processed by Flywire but you cannot access the funds, you must visit your bank branch in person to complete their internal verification and have them release the hold.