WeMakeScholars brings to you, 'International student loans: MPower & Prodigy finance foreign education loan Part 2', which is a sequel to Part 1 of the same episode. Do watch Part 1 of the 10th Loanflix episode before you begin with this one. 'International Student Loans: MPower finance & Prodigy finance foreign education loan (Part 2)' is an extension of Part 1.
What is interest rate parity? How does it affect the final loan amount? How do varying currency rates affect the total loan amount? Does the interest rate remain constant? Or does it vary? what is the maximum loan amount approved by foreign lenders? What percentage of expenses are covered by Prodigy finance foreign education loan schemes? Too many questions, but relevant ones, right? At least one of the above questions must have bugged you at some point while you were weighing your options for an international student loan. Don't worry, we have got it covered for you in this part of the 10th episode.
Loanflix is the most comprehensive web-series on abroad education loans. The motive is to empower students and their guardians so that they can take an informed decision about the education loan.
We begin Part 2 with a short recap of Part 1. After clearing all the basic concepts once again, Damini, our speaker, moves on to explain the next couple of parameters comparing the foreign lenders to the Indian ones. The video is given below.
Drawback 4: Interest rate parity
What exactly does the term 'Interest rate parity' mean? Can we compare the interest rates provided by Indian banks/NBFCs to those stated by foreign NBFCs like Prodigy finance foreign education loan? Did you know that the loan repayment policies of Indian Banks mention a few advantages that are applicable only to students who are Indian nationals?
Applicants approach us with questions related to the above doubts, every day. Watch out for the three different scenarios in which, Damini, our founder and speaker, shows, in the form of calculations how interest rate parity plays a major role in determining the final loan amount repaid by a student. Do not fail to note down the important calculations that are discussed in this part of the episode.
Overall effect of interest rate parity- explained with calculations
How does the vast difference in the INR and the USD affect your total loan amount? At what points can Indian nationals avail for certain exemptions? What provision is made by the Indian government to ease the education loan burden for Indian students? How does a student stand to benefit from an education loan scheme offered by Indian Banks/NBFCs? Are these provisions applicable to foreign NBFCs as well? Damini takes a hypothetical scenario as an example and explains all these terms in the form of actual calculations.
Drawback 5: Prodigy finance foreign education loan & MPower finance Loan margin & Loan limit
MPower finance and Prodigy finance do promise to cover your entire expenses, however, these promises are fulfilled only under certain conditions. To know more, look out for this portion of the episode.
What if you are a candidate who has collateral of good value, and a co-applicant with no previous financial problems? Whom should you consider for an abroad education loan in such conditions? Or what if you don't have both; collateral as well as a good co-applicant? Whom should you approach then? Don't freak out! In the last portion of this episode, Damini gives you clear solutions to all the above dilemmas. So keep a look out for the concluding part.
We hope that after watching both parts of the 10th episode, many of you will get a clear idea of what factors should be carefully considered while going for an education loan. By the end of this episode, many of you will have clarity on when you should apply for an education loan to Indian banks/NBFCs and when to apply for foreign NBFCs. We also feel that you will be able to relate to the different scenarios explained in this part of the 10th episode. If you do find these videos helpful, do like them and subscribe to our YouTube channel. Watch out for the events section of our website to avoid missing information about the future episodes of Loanflix.
Date And Time
Timezone : (GMT+05:30) Chennai
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Damini is the Cofounder & CEO of WeMakeScholars.com. It’s a BITS start up supported and funded under the IT Ministry, Govt. of India. The organisation’s motive is to offer unbiased collateral/non-collateral based education loan support to students who are planning for studying abroad. As this initiative is under the digital India campaign, it's at free of cost. WMS works with 14+ banks (public/pvt) in India and help you get the best edu loan matching your profile.
Prior to launching WeMakeScholars, Damini had done her masters from the University of Sheffield, UK. Her education was funded under the Developing Solutions Masters Scholarship which covered her full tuition fee ($ 38,000). Damini is also a gold medalist in her Bachelors and also won the outstanding student award from the Vice president of India.
She was the speaker at TiECon 2016 at Silicon valley, San Francisco in the social entrepreneurship segment. She was also covered in the Asian Entrepreneur magazine in the “Women on Top in Tech”, a global series of Women Founders, CEOs & Leaders in Tech.