A loan sanction letter is an official document issued by your loan provider indicating the terms and conditions of the loan as well as basic details such as the loan borrower’s name and the amount of the loan. This is required to calculate the Tax Collected at Source (TCS) accurately.
The TCS rate for your payment via bank transfer will be calculated based on the source of funds:
Education loan from banks and Credila
If your payment is made using funds from an education loan, a reduced TCS rate of 0.5% will be applied.
To qualify for this rate, you must provide one of the following:
- Loan sanction letter
- Latest loan disbursement statement or letter
- Savings account statement showing the credit from the loan account (if the payment to Flywire was made from a savings account)
Note: The account numbers should be visible in both statements to verify that the funds originated from the education loan.
Savings or a combination of savings and education loan
A TCS rate of 5.0% will be applicable.
Note: If you provide a loan sanction letter when initiating your payment request, Lulu Forex will review it and contact you within 3 business days regarding any applicable tax reimbursements.
Education loan from other financial institutions
A TCS rate of 5.0% will be applicable.
If you do not submit the required documents such as the loan sanction letter to Lulu Forex, your payment may be delayed or cancelled.