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Getting a Prodigy Finance loan - what you need to know

Prodigy Finance - November 02, 2017

25- Accepted 3 Getting a Prodigy Loan – What You Need to Know

Considering an international master’s degree? You’re in the right place to find information on applications, dealing with foreign study challenges, and – of course – figuring out how to finance your education.

We know international education isn’t always a smooth path. Just studying for the GMAT, GRE, LSAT, or TOEFL is time-consuming and sometimes tricky. We aim to provide you with resources to help you succeed. But, assisting international students fund their grad school degrees remains at the core of Prodigy Finance’s operation.

Why?

If you’re like the majority of Prodigy Finance-funded students, you don’t have many options when it comes to paying for your international master’s degree. Whether your school directed you to our site or you’ve done the research on your own, this is what you need to know now about Prodigy Finance.

Who can apply for Prodigy Finance loans?

  • At the moment, Prodigy Finance loans are available to international Master’s students from over 118 countries. Students from the UK are also eligible to apply for Prodigy Finance loans for study in the UK.
  • Prodigy Finance has made changes to the application process over the years. It is no longer necessary to have an acceptance letter to apply. Acceptance is, of course, necessary to complete the process and receive a loan. 
  • Loan applicants may undertake loan applications for multiple universities and programmes to receive preliminary loan amounts and terms to determine the best path.
  • Currently, funds can be used for study in the business, engineering, law, and public policy at universities accepting Prodigy Finance loans. Not every programme is supported at every university; you’ll need to check for both the university and your course of study.

How much can Prodigy Finance offer?

  • Each university and programme has a different set of terms for the acceptance of Prodigy Finance loans. Some allow these finances to cover only tuition; others permit as much as the full cost of education. Check your programme’s parameters before applying for your loan to ensure you can cover the complete cost of your education.
  • In addition to university agreements, personal loan amounts are linked to pre-study salary, university and programme, outstanding liabilities and debt, countries of residence and nationality, and more. 
  • Everyone’s interest rate is personal and based on a range of factors, including credit history. This amount is floated on top of the relevant LIBOR rate as the standard base. LIBOR rates are variable and updated monthly. Interest and APR rates can be difficult to understand; this article explains it, but you can always ask for a deeper explanation from our service team. 
  • While Prodigy Finance looks at your previous salary, the amount offered is based on your potential earnings post-graduation. This usually allows for a higher loan offer than local banks can provide. 
  • Applying for a loan doesn’t mean you must accept an offer. And, there’s no cost to apply. 

What should you know about the application process?

  • You can apply for a Prodigy Finance loan from anywhere in the world. Well, anywhere you have a secure internet connection. The process is facilitated online, and hard copies of documents aren’t required.
  • The processing teams work with students from around the world every day. They’re quite adept at understanding documentation differences and pointing you in the right direction.
  • You should expect a provisional loan offer within a week. After confirming this offer, you’ll need to upload supporting documentation. Most loans are completed within a month.
  • You will need to obtain a credit report and pass a background check against Know Your Customer (KYC), Anti Money Laundering (AML) and Politically Exposed Persons (PEP) criteria.
  • You'll create a login to the Prodigy Finance dashboard which will guide you through the process. Our operations team will reach out quickly; you'll have a direct contact for any questions you may have.
  • Students pursuing a two-year degree will apply for a loan for the first year and pre-approval for a loan for the second year in one go. You will need to reapply for a loan for your second year to account for any financial changes which occurred during the first year even if you have pre-approval. This video explains why

What happens after accepting a Prodigy Finance loan?

  • You are required to e-sign your final loan documents upon arrival at your university; your loan cannot be finalised without completing this step. 
  • Prodigy Finance disperses loans straight to the university. You will not need to handle the transfers. If there are excesses in your account, that’s between you and the financial departments at your school.
  • Prodigy Finance will issue you with an official Loan Letter (known as a sanction letter in some countries). This document is required by American universities to secure the I-20 form which must be secured before applying for a visa. Universities in other countries may also request a copy and it is required to secure international study visas for most countries - and usually must be presented at immigration. 
  • Interest begins accruing when your funds are released to your university. In addition, and in line with a new product roll out in July 2017, interest is only calculated on the principal balance of your loan account.
  • Unless you are attending part-time, you will have a grace period until after graduation.
  • However, you can make payments if you like. There’s no penalty for early repayment – and extra payments will reduce the interest paid in the long term.

What else should you know about Prodigy Finance loans?

  • Prodigy Finance’s student loans are collectively funded by a community of alumni, institutional investors and qualified private investors who receive both a financial and social return.
  • We provide some information about our borrowers to these investors including repayment status. This transparency means your name and career act as your collateral and cosigner. 
  • Prodigy Finance offers students resources beyond financing; the community team continues to add new benefits to the portfolio such as local SIM cards and housing discounts. Don't hesitate to ask your Prodigy Finance contacts for more information on community benefits
Interested? Have more questions? Why not visit our student FAQs for complete details. If you’re ready to apply for a Prodigy Finance loan, find your university on the list, then click through to set up your Prodigy Finance dashboard. 

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