Prodigy Finance vs Indian banks (2025–2026): which education loan suits Indian students?
Comparing Prodigy Finance vs Indian banks for 2025–2026? See the key differences in eligibility, collateral, disbursement, repayment, currency, and visa documentation.
Choosing how to fund your international education is one of the biggest decisions you’ll make before studying abroad. For Indian students heading overseas in 2025–2026, the choice often comes down to Prodigy Finance vs Indian banks.
Both can support your goals, but they work in different ways. This guide breaks down the differences clearly and fairly so you can decide what fits your situation, your programme, and your long-term plans.
The big picture: two different approaches
At a high level, the difference often looks like this:
Indian banks typically focus on your current financial profile, documentation, and security in India.
Prodigy Finance typically focuses on your future earning potential linked to your programme and school.
Neither option is right for everyone. The best choice depends on what you value most, how quickly you need funding confirmed, and what documentation you can realistically provide.
1) Eligibility and assessment criteria
Prodigy Finance
Prodigy Finance assesses applications based on:
your academic background,
your chosen programme and school, and
your future earning potential after graduation.
This can suit students who:
are admitted to well-regarded international universities,
prefer not to pledge collateral in India, and
want the loan assessed primarily on their own profile.
Indian banks
Indian banks typically assess:
your academic record,
family income and financial standing, and
the credit profile of the borrower and co-applicant.
This can suit students who:
have strong family financial backing,
are comfortable sharing detailed financial records, and
prefer a domestic banking relationship they already know.
2) Collateral requirements and documentation load
Prodigy Finance
No collateral is required for the main product.
The process is designed for international study, which can mean fewer physical steps compared to branch-led processes.
Indian banks
Many Indian banks may require collateral for higher loan amounts, and often involve:
property or fixed deposits,
more documentation, and
additional verification steps.
This can work well for families who already have eligible collateral and feel comfortable pledging it.
3) Loan amounts and cost of attendance
Prodigy Finance
Loan amounts are linked to the cost of attendance limits set by schools and can cover:
tuition fees,
mandatory university expenses, and
living costs as defined by the university.
Funds are sent when we send the funds to your school, helping align with university billing cycles.
Indian banks
Indian banks may:
cap loan amounts based on collateral value or internal policies,
release funds in instalments, and
require additional approvals if costs increase.
Timelines and experience can vary by bank and branch.
4) Interest rates and what to compare
Interest rates matter, but they are not the only factor. The structure of the loan, fees, and when repayments start can change the real cost over time.
Prodigy Finance
Prodigy Finance offers variable rate loans. When comparing, it helps to look at the Representative APR and the full cost of borrowing, not just an initial rate.
Indian banks
Indian banks may offer:
fixed or floating rates,
different pricing for secured vs unsecured loans, and
subsidised rates under specific schemes, where eligible.
Rates and terms can change and often depend on collateral strength and borrower profiles.
A useful rule of thumb is to compare the total cost of borrowing, not only the headline rate.
5) Repayment timelines and flexibility
Prodigy Finance
Repayments begin after your grace period (regular). This can help you transition into work after graduation before full repayments begin.
Indian banks
Repayment structures vary widely. Some lenders may:
expect interest payments during study,
offer moratorium periods with different terms, and
set repayment schedules that are less flexible.
It’s worth asking one clear question early: When do repayments start, and what is expected during study?
6) Currency and international exposure
Prodigy Finance
Loans are typically denominated in international currencies. This can suit students planning an international career, but it also introduces currency exposure if your earnings and repayments are in different currencies.
Indian banks
Loans are usually denominated in INR, which can feel more familiar if your finances are primarily India-based. If you earn abroad, repayment logistics can vary by bank.
7) Application experience and speed
Prodigy Finance
Fully online application experience
Designed for international students across 120+ countries
This can be helpful if you are managing admissions, visas, and relocation at the same time.
Indian banks
Processes can be branch-dependent, and some students experience:
longer documentation reviews, and
more in-person follow-ups.
Some students value face-to-face reassurance. Others prefer fewer steps and a more digital flow.
8) Visa and proof-of-funds considerations
Both Prodigy Finance and Indian banks can support visa applications, but the documentation can look different.
Prodigy Finance provides loan approval documentation aligned to university costs.
Indian banks provide sanction letters commonly used for visa financial documentation.
Always check country-specific requirements and ensure all figures match your university’s cost estimates.
9) Which option may suit you better?
You may lean towards Prodigy Finance if you:
are admitted to a supported international school,
prefer not to pledge collateral in India, and
want repayments aligned with post-study life.
You may lean towards Indian banks if you:
have strong collateral available,
prefer INR-denominated borrowing, and
are comfortable with traditional banking processes.
Some students also combine sources, using savings or scholarships alongside a loan.
Final thoughts: compare beyond the headline numbers
The choice between Prodigy Finance and Indian banks is not only about rates. It’s also about structure, timelines, documentation, currency, and how the loan fits into your life after graduation.
Take your time, ask direct questions, and choose the option that supports both your studies and your future plans.
Ready to check your loan eligibility?
Check your eligibility for an international student loan and see how much you could borrow for 2025–2026.*
