Prodigy Finance education loan – terms, repayment and all you need to know
Prodigy Finance education loan is a platform that provides financing for foreign postgraduate students who get admitted to a participating educational institution or a business school. Prodigy Finance education loan is provided by a circle of investors.
Prodigy Finance education loan procedure
After getting your admission letter from the university, you can apply online. The committee will review your application and perform a cross-border credit analysis to make sure there is no history of credit default. They will reply to you within five working days. You will receive a provisional approval if your loan is approved. You need to submit KYC documents, Anti Money Laundering (AML) and Politically Exposed Persons (PEP) criteria for a background check.
Prodigy Finance loan credit assessment includes elements such as pre-study salary, university acceptance and future income for individual loan affordability.
For verification, you will need to upload your passport and admission letter. Prodigy Finance directly sends the funds to the university after you have uploaded the documents and have signed the agreement.
You can also go through the video below which is taken from the 10th episode of the web-series called “Loanflix- Abroad education loan simplified”. As there are 2 parts to the episode, both the videos are shared below for getting a detailed understanding of these International student loan lenders like Prodigy Finance.
Prodigy Finance processing fee
Prodigy Finance charges a whooping processing fee of 2.5% of the loan amount. This is a very high figure when compared to state-run/ government banks. For example, let’s assume Alex is a student from India who got an admit into one of those top universities which Prodigy Finance supports. Now he requires INR 50 lakhs as an education loan. If Alex goes with Prodigy Finance, he has to pay a processing fee of 2.5%, which is INR 1.25 lakhs. At the same time, Alex might have to pay nothing or at max INR 10K if he would take the same education loan from a government/ public bank in India.
Prodigy Finance Education loan term, collateral and repayment period
There are two loans available, one for 1-year study program and the other for a two-year study program. Loans lent by Prodigy Finance are in US Dollars. There are a few critical disadvantages of taking a USD loan, which is explained in detail.
It states an APR (Annual Percentage Rate) and it does not demand collateral or a co-signer. Moreover, you can repay after 6 months of your graduation. There is no penalty levied for early repayment.
Prodigy Finance for MS, MBA, Policy and Law
Prodigy Finance for MS includes Carnegie Mellon University – Heinz College School of Information Systems and Management, Columbia University – The Fu Foundation School of Engineering and Applied Science, Cornell University – College of Engineering and much more.
Prodigy Finance for MBA, Law and Policy includes Arizona State University – Carey School of Business, Babson College – Olin School of Business, Boston University – School of Law, Columbia University – Columbia Law School, Duke University – Sanford School of Public Policy, Georgetown University – McCourt School of Public Policy.
For the entire list of universities and more details on applying for an education loan to Prodigy Finance India or International, visit APPLY NOW page
Demerits of Prodigy Finance
Whilst they don’t require collateral or co-signer and everything seems too good, there are multiple demerits which put off many students in taking an education loan from Prodigy Finance. These demerits are not clearly seen from a top view on the first go. It requires one to understand a few International terminologies in Finance, and also market analysis of the past and the future. But, is very important for every student and parent to go through these, as taking an education loan is a long-term affair, knowing it end-to-end is vital. To make it very simple and to the point, Rishika, a Ph.D. researcher from Stanford had done a deep analysis on this topic. You can read her critical insights here
Note: WeMakeScholars is an organization supported by the IT Ministry, Govt. of India. It is the most transparent and unbiased platform offering International education finance guidance and support to study abroad aspirants. Though it was started as an International scholarship portal initially, the scope has been expanded to education loans after the support under the Digital India Campaign. Today they have 26K+ International scholarships and they are associated with 14 Public and private banks/ NBFCs in India and abroad.
You can request a callback from the WeMakeScholars team if you are a study abroad aspirant. The financial officer will get in touch with you and assist you until you get it done. Please note being a Digital India campaign supported organisation, WeMakeScholars does not charge anything for its services.