CHAPTER 9 · FINANCING
Proof of funds,loans and remittances.
For a French student visa you must show at least €877.50 a month (€10,530 a year) from 1 August 2026, through bank statements, a sponsor's guarantee, a loan sanction letter or a scholarship. From India, loan-funded education remittances carry no TCS; self-funded remittances above ₹10 lakh a year carry 2% TCS that you can adjust against income tax.
Published by Althéa Consulting · Adviser: Harshita Kohli
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- Minimum resources
- €877.50 / month
- 47% of the French minimum wage
- For one year
- €10,530
- TCS, loan-funded
- Nil
- From a specified financial institution
- TCS, self-funded
- 2% above ₹10 lakh
- FY 2026–27
Accepted proof of funds
- Your own bank statements (usually last 3–6 months) showing a stable balance
- Parent or sponsor's statements with a signed sponsorship letter and their ID
- Education loan sanction letter covering living costs
- Scholarship award letter stating the monthly amount
- Prepaid accommodation or tuition receipts (they reduce the amount you still need to show)
Education loans from India
Banks and NBFCs offer secured loans (with property or deposits as collateral, usually lower interest) and unsecured loans (higher interest, based on your admission and a co-applicant's income). Lenders favour recognised institutions and programmes with good employment outcomes.
Compare the interest rate, processing fee, moratorium period, margin money and whether living costs are covered. Get the sanction letter before your visa appointment; disbursement can follow your admission confirmation.
Under India's old tax regime, interest on an education loan can be deducted for up to eight years. Check with a tax adviser which regime applies to your co-applicant.
Sending money for fees
- 01
Get the invoice
Ask your school for an invoice or fee letter with its bank details (IBAN and BIC).
- 02
Remit under LRS
Use your bank's education remittance route with the admission letter and invoice.
- 03
Check TCS
Loan-funded remittances have nil TCS. Self-funded remittances above ₹10 lakh in a financial year attract 2% TCS from April 2026, which is adjustable against income tax.
IN DEPTH · TAP A TOPIC TO OPEN
Education loans from India compared
| Type | Examples | Typical features |
|---|---|---|
| Public-sector banks | SBI, Bank of Baroda, Union Bank, Canara Bank | Lower interest, collateral above a set amount, slower processing |
| Private banks | HDFC Bank, ICICI Bank, Axis Bank | Faster, collateral or co-applicant income-based |
| NBFCs specialising in education | HDFC Credila, Avanse, Auxilo, InCred | Unsecured options for strong admits, higher interest, quick sanction |
| International lenders | Prodigy Finance, MPOWER (selected schools) | No Indian collateral, USD/EUR loans, limited programme lists |
Getting a loan sanctioned, step by step
- 01
Get the admission letter
Banks sanction against an offer; some give a pre-admission letter for the visa.
- 02
Compare three lenders
Ask for the rate, processing fee, collateral rule, insurance and prepayment terms in writing.
- 03
Prepare co-applicant documents
Parents' income proof, ITRs, bank statements, KYC, and property papers if collateral is needed.
- 04
Sanction letter
Use it as proof of funds for the visa together with any savings.
- 05
Disbursement
Tuition is paid directly to the school; living costs are released in instalments to your account.
Tax benefits and repayment
Interest on an education loan from a recognised lender can be deducted under Section 80E for up to eight years from when repayment starts, with no upper limit on the interest amount (check your tax regime, as deductions differ between the old and new regimes). Most loans include a moratorium for the course period plus 6–12 months; paying simple interest during the course reduces the total cost considerably.
Use the government's Vidya Lakshmi portal to apply to several banks with one form and track applications.
QUICK ANSWERS
Your questions, answered.
At least €877.50 a month of your stay (€10,530 for a year) for applications from 1 August 2026. Showing a margin above the minimum is safer.
Yes. Provide their bank statements, a signed sponsorship letter and their ID proof. Prefecture renewals in France will again check your resources.
Yes, from several NBFCs and private banks, usually up to a limit that depends on your university, course and co-applicant income. Above that, or for a lower rate, most banks ask for collateral.
Yes. A sanction or disbursement letter from a bank is commonly accepted, together with bank statements for any remaining amount.
None if the money comes from an education loan from a specified lender. If self-funded, 2% TCS applies above ₹10 lakh in a financial year from April 2026, which you can claim back against income tax.
WHERE TO GO NEXT
Keep going: the pages that help next.
Each card says what you will find there. Looking for something else? See every page on the site.
FRANCE GUIDE
Student visa
France long-stay student visa (VLS-TS) for Indians: documents, €50 fee via Campus France, VFS biometrics, €150 validation and renewal rules.
FRANCE GUIDE
Fees & cost of living
2026–27 tuition fees, CVEC, visa and Campus France costs, and monthly living costs in Paris and other French cities for Indian students.
FROM INDIA
Education loans from India
Study abroad education loans from India: public banks, private banks, NBFCs and international lenders, collateral, margin money, moratorium and 80E.
FROM INDIA
Sending money abroad
Pay foreign university fees from India: LRS limit of USD 250,000, TCS from April 2026 (nil on loans, 2% above ₹10 lakh), Form A2, forex cards and TCS refunds.
TOOL
Compare countries
Compare countries on fees, living costs, visa rules and post-study work, in one table.
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