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Prodigy Finance FAQ: Forex risk and taking a loan in a different currency than your school

Prodigy Finance - September 12, 2018

Interested in a Prodigy Finance loan? Here's your chance to learn more about Forex risk and taking a loan in a different currency than your school.

Forex risk and taking a loan in a different currency than your school

What is FX risk and how does it impact me?

Foreign exchange risk, or FX risk, can occur when you take out a loan in a currency that is different than your school’s tuition fee, or when your loan is in a different currency to your post study salary.

For example, if your loan is in US dollars and your future salary is in euros, fluctuations in foreign currency exchange rates may impact the amount you have to repay in your home currency, as you have to repay your Prodigy Finance loan in US dollars.

Currently, one US dollar converts to approximately 90 euro cents. If you have to repay 400 US dollars, you need about 358 euros.

If the foreign currency exchange rate decreases, so one US dollar converts to one euro, you now have to repay 400 euros.

On the other hand, if the exchange rate improves, so one US dollar converts to 50 euro cents, you only have to repay 200 euros. 


What is FX risk and how does it impact me?

What happens when my loan is in a different currency than the school's tuition fee currency?

Prodigy Finance loans are available in three major currencies: US dollars, pounds sterling and euros. However, not all three currencies are available at each school, so please check our website to find out which currency is available for your school.

It’s important to keep in mind that if you take out a loan in a currency that is different from your school, for example, if you have a US dollar loan for a European school with a tuition fee in euros, there may be a shortage or surplus between your loan and your tuition amount due as it depends on the day’s currency exchange.

If there is a shortage, you will need to pay for the difference; the amount is normally negligible.

If the loan turns out to be more than the outstanding tuition fee, depending on the arrangement that we have with the school, they will either send the funds to you directly or back to us and we will credit this against your outstanding loan balance.


What happens when my loan is in a different currency than the school's tuition fee currency?

Have more questions about Prodigy Finance student loans?

We’re always happy to help with any concerns you have regarding Prodigy Finance's international student loans; if you any questions regarding Prodigy Finance, our loans or the steps you'll need to complete in your application, feel free to send us an email on info@prodigyfinance.com or check our FAQs pages to see if your question has already been answered.

 

Interested in a Prodigy Finance Loan?

Prodigy Finance offers no cosigner, collateral-free loans to eligible international students attending supported universities across the globe. If you're considering postgraduate study, you might want to consider a Prodigy Finance loan.


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