Prodigy Finance Education Loan

8 minute read

Investing in education means investing in a bright future. In recent times, education has become a very costly affair, much to the chagrin of many students who are limited by financial constraints. Hence, educational loans help in fulfilling the dreams of many bright individuals by providing them with the needed funds to gain successful admission to a university or institute of their choice. Typically, education loans cover tuition fees, living expenses, transportation costs and other additional costs. This allows the students to complete their degrees successfully without the worry of financial constraints. They can repay the loan after earning their degree. In this blog, we will cover everything that you need to know about the Prodigy finance education loan, its application process and eligibility criteria. 

What is the Prodigy Finance Education Loan?

Prodigy Finance Education Loan enables financing for students who wish to pursue their higher education in top business schools or post-graduate institutions. Founded in the year 2007, Prodigy Finance aims to bridge the financial gap for highly potential and intelligent students who are seeking admission to prestigious international post-graduate institutes. Prodigy Finance covers postgraduate students in numerous fields such as Business, Engineering, Public Policy, Law and Health sciences.  Prodigy Finance’s loans are funded by a group of alumni, institutional investors and qualified private investors who in return receive financial and social returns. 

Prodigy Finance Education Loan: Key Features

Some of the key features of Prodigy Finance Education Loan are :

  • The entire application process for Prodigy Education Loan is completely online. Students don’t have to visit the company physically,  but they can easily apply for the loan online since hard copies of essential documents are not required. 
  • The processing teams of Prodigy Finance are always available to steer students in the right direction when it comes to applying for Prodigy Education Loan. They are trained to understand any kind of documentation differences that may occur while applying for the loan. 
  • The processing time of the Prodigy Finance Education Loan is quick as compared to other financial institutions. Students may receive conditional loan approval within a few days of submission of essential documents. 
  • Prodigy Finance sanctions loan amounts without the requirement of a co-signer or collateral. Loan sanctions are given purely based on the student’s academic profile and the college to which they have applied. 
  • Prodigy Finance Education Loans can cover up to 100 % of the tuition fees and other additional expenses. This means the students do not have to incur any additional expenses while studying abroad. The loan covers tuition fees, living costs, caution deposits or building funds. 
  • The repayment period for Prodigy Finance Education Loan is up to 20 years. The repayment period starts 6 months after the completion of studies. 

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Pros and Cons of the Loan

Here are some pros and cons of the Prodigy Finance Education Loan. Check the list below:


  • There is a wide range of repayment term lengths available.
  • There is no need for a co-signer, creditor, or no collateral.
  • You can obtain a quote before being admitted to a specific programme.
  • There is a lot of help with funding and international college student life.


  • Only international graduate students are eligible.
  • Only provides variable-rate options that are relatively high.
  • Funding is contingent on being “matched” with a funder.
  • Funding is restricted to specific countries, schools, and degree programmes.

Prodigy Finance Education Loan

Loan Amount

Prodigy Finance Education Loans provides a loan amount that may range from USD 15,000 ( Rs. 11,14,062 INR ) to 100 % of the entire tuition amount. 

Interest Rate

Prodigy Finance calculates interest rates using the simple interest formula. This means that the interest rates do not compound during the duration of the loan. The interest rate is variable and comprises two parts :

  • A fixed margin which is determined by Prodigy Finance
  • A variable base rate is determined by a 3-month LIBOR ( London Interbank Offered Rate )

The fixed margin is based on information that is provided by the student in their application, data provided by the relevant institutions, and past borrowing data. Currently, the lowest variable interest rate that is available to students is 6.7 % and the current average rate is 10 %.

Also, it is important to note that in addition to the interest rates, Prodigy Finance also charges an admin fee for every Prodigy Finance Education Loan. The maximum admin charged by Prodigy Finance is 5 % of the total loan amount. The student does not have to pay the fee upfront instead the fee is added to the loan amount and spread across the monthly payment. 

Also, students will be charged a fee of USD 25 ( Rs. 1856 INR) in case of late payment. 

Loan Processing Fee

A massive processing fee of 2.5%–4% of the approved loan amount is charged by Prodigy Finance. If we compare this to government banks, it is a very high number.

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Repayment Options

For full-time students, the repayment period begins 6 months after the end of their programs. In the case of part-time students, the repayment period begins 3 months after the disbursement of their loan. While there are no in-school options for complete repayment of the Prodigy Finance Education Loan, students can still make payments while they are still studying. There are no application or prepayment penalties for making early payment of the loan. 

Additionally, students also have the option of making bulk payments, that are paid more than 3 times their contractual instalment, up to their grace period. Therefore, Prodigy Finance will automatically re-amortize the loan by lowering the monthly payment by the end of the grace period. 

Forbearance and Loan Discharge Options

If the student faces any trouble while repaying the Prodigy Finance Education Loan, they can apply for forbearance which is offered in 3-month increments. Under this, Prodigy Finance reevaluates the eligibility after each increment. 

Also, Prodigy Finance is not that lenient when it comes to the discouragement of their education loan in case of death or any disability. They will recover the loan amount from the estate of the student. 

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Loan Eligibility

Prodigy Finance Education Loans apply to students from over 150 countries. Additionally, students from the UK can also apply for the Prodigy Education Loan. 

The eligibility criteria for Prodigy Finance Education Loans also include :

  • The student must plan to study abroad and attend an institute that is located in a different country than their home country. 
  • While Prodigy Finance Education Loan supports more than 750 global institutions, it is only limited to the programs of Business, Engineering, Public Policy, Law, and Health sciences. Technology and STEM professions. 
  • The students must be a part of one of the 150 countries that Prodigy Finance covers since there are certain US and Canadian states that the company does not support.

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Application Process

The application process for the Prodigy Finance Education Loan is as follows :

  • The student can apply online for the Prodigy Finance Education Loan.
  • After the creation of a Prodigy Account, the student can log in and start filling out their application. They will be required to give important information such as personal and academic details along with uploading supporting documents.
  • The processing team works with the students to sort out any documentation differences while filling out the online application. 
  • After the verification of the supporting documents, the student will receive a conditional or provisional loan offer on their dashboard. The student may also receive an email regarding the loan sanction which can be used for securing their student VISA.
  • The student will also be required to obtain a credit report and pass a background check against their KYC,  Anti-Money Laundering and Politically Exposed Person criteria. 
  • After the completion of the above requirements, the loan is finally sanctioned and an online agreement is signed by the student. The funds are then directly disbursed to the relevant institute as and when required. 

It is important to note that it may take up to 2 weeks for students to get approved for a loan.

Documents Required

The essential documents that are required while applying for the Prodigy Finance Education Loan are as follows :

  • Identity proof such as a passport, driver’s license, or government-issued identification document.
  • Address proof such as water bill, electricity bill, bank document, rent agreement, etc.
  • Admission proof including an offer letter from the school confirming the acceptance of the student into their program. 
  • Credit Report.
  • Proof of Income (if applicable).
  • Proof of Savings (if applicable).
  • Proof of Scholarships or Company Sponsorship (if applicable).

Check out the Education Loan for Abroad Studies by the Indian Government

Post Application

After the acceptance of the Prodigy Finance Education Loan, there are certain conditions that the student must abide by.

  • The student is required to give an e-signature on the final Prodigy Finance Education Loan letter after they arrive at the university. The loan is not finalised until the completion of this step. 
  • Prodigy Finance directly disburses the sanctioned loan amount to the chosen university. In case of any excesses, Prodigy Finance is not to be held responsible for it. 
  • Prodigy Finance issues the student with an official loan sanction letter. This document is mandatory in American Universities for seeking the I-20 form which must be secured before applying for VISA. This document may also be required by other universities since it is necessary for securing an international student VISA. 

Final Verdict

It’s crucial to understand that there are less expensive options available if you’re an international graduate student. The drawback is that not everyone will be eligible for these loans, particularly if you come from a poor family. Prodigy Finance fills the gap and provides funding based on your potential future earnings. The likelihood that you will be approved for these more expensive loans increases if you plan to work in a high-earning profession, and Prodigy Finance may be the key to realising your educational goals.


Can I get a loan from Prodigy Finance?

You must be accepted into a school and programme that we support. Their website contains a comprehensive list of schools that we support. Remember, you can apply for a quote even if you don’t have an admittance letter; they’ll only require proof of admission when they finalise your loan.

What is Prodigy Finance’s interest rate?

The minimum Annual Percentage Rate you could be offered is 10.50%. This APR is based on a 4.98% fixed margin rate, a variable base rate of 4.66%* (3-month CME Term SOFR as of January 6, 2023), and a 5% administration fee.

How much loan does Prodigy Finance provide?

Depending on your course and school, Prodigy Finance will cover up to 100% of your tuition. The funds will be transferred directly to your school. Your tuition will be credited, and the remainder will be transferred to your bank account.

Thus, we hope that this blog has given you adequate information on the Prodigy Finance Education Loan and its application process. However, this is not the only education loan that is offered to students. Students also have a range of educational loans to pick from, depending on their comfort and financial limits. If you’re planning to study abroad, you can always reach out to our experts at Leverage Edu who can help you with your preparation plans and assist you in picking the right scholarships and education loans.

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