Prodigy Finance vs traditional bank loans: which is better for studying abroad in 2025–26?

Studying abroad can open doors to new knowledge, global networks and a world of opportunity. Before you begin your journey, you need to answer one important question: how will you fund it? For many international students, this decision comes down to choosing between Prodigy Finance and a traditional bank loan.

If you are planning for the 2025–26 academic year, this guide breaks down the key differences in a clear, student-first way to help you choose the option that supports your goals.*

Why your study abroad loan choice matters

Funding is more than a financial step. It shapes the flexibility you have while studying, the comfort of your repayment plan and how easily you adjust to a new country. Traditional bank loans have been the norm for decades, although global mobility and technology have changed what students need and expect.

Prodigy Finance was created for international students who may not have collateral, a co-signer or a local credit history. Understanding these differences helps you choose a funding path that fits your ambitions.

A quick overview: Prodigy Finance vs traditional bank loans

Prodigy Finance

• Supports international students from more than 120 countries.

• Does not require collateral or a co-signer.

• Considers your future earning potential in the assessment*.

• Sends funds directly to school.

• Begins repayments after your grace period.

• Focuses on master’s-level programmes at well-regarded global universities

Traditional bank loans

• Often require collateral or a family co-signer.

• Depend heavily on current income or credit history.

• Include in-person visits, paperwork and longer timelines.

• They are not always designed for international mobility

1. Eligibility and accessibility

Prodigy Finance: built for globally mobile students

Prodigy Finance supports international master’s students who may not meet traditional bank criteria. Your future earning potential, not only your current income, plays a role in the assessment.*

You do not need:

• Collateral

• A local guarantor

• A co-signer

Traditional bank loans: familiar but restrictive

Most banks require:

• Property or fixed assets as collateral

• A co-signer with strong local credit

• Proof of long-term household income

• In-branch paperwork and verification

2. Loan process and turnaround time

Prodigy Finance

• Uses a fully online process

• Allows you to upload documents digitally

• Provides faster decision timelines

• Sends funds directly to your school once approved

Traditional banks

• Require in-person visits

• May need notarised or stamped documents

• Conduct collateral checks

• Have longer approval cycles

3. What determines your loan terms?

Prodigy Finance

Loan terms are based on:

• Your chosen school

• Your programme

• Your profile and earning potential*

Traditional banks

Banks often assess:

• The financial strength of you or your co-signer

• Your credit history

• The value of collateral

4. Payments, grace periods and flexibility

Prodigy Finance

• Begins repayment after your grace period

• Sends funds directly to the school

Traditional banks

• Offer varied grace periods

• May require interest payments while you study

• Offer limited flexibility depending on the bank

5. Co-signer expectations

Prodigy Finance

• Does not require a co-signer for the core loan

• Offers optional co-signer loans only for eligible Indian resident students (T&Cs apply)

Traditional banks

• Require co-signers with high credit scores

• Ask for local tax returns

• Expect stable income

6. Global footprint

Prodigy Finance

• Supports students across more than 120 countries

• Covers hundreds of postgraduate programmes

• Has strong support for STEM, business and public policy degrees

Traditional banks

• May only support approved foreign universities

• Often limit lending to certain currencies

• Sometimes depends on partner institutions

7. Support beyond the loan

Prodigy Finance

• Provides access to alumni stories

• Shares visa guidance and practical tips

• Helps build connections with a global student community

Traditional banks

• Focus mainly on the loan transaction

Which option is better for 2025–26?

Every student has different needs. This summary can help you decide.

Prodigy Finance may suit you if:

• You do not have collateral or a co-signer

• You want a fully online, globally aligned process

• You aim to study at a supported university

• Your future earning potential is stronger than your current financial profile

A traditional bank loan may suit you if:

• You have collateral or a strong local co-signer

• You prefer an in-country bank relationship

• Your bank offers competitive terms for your programme

Making the choice: a student-first checklist

Ask yourself:

• Do I have collateral or a co-signer available

• Do I need a fully online application process

• Do I need quicker approval timelines

• Is my future earning potential a stronger indicator than my current income

• Does my bank support my university and currency

• Who offers the repayment flexibility I need

Your answers will guide you to the loan that supports your plans.

Ready to explore your study abroad loan options?

If you want to see what your international education funding could look like, you can check your eligibility in minutes.*

Check your eligibility

Final thoughts

Choosing the right loan shapes your study abroad experience. Whether you choose Prodigy Finance or a traditional bank, focus on the option that gives you clarity, comfort and confidence as you plan your move abroad.

Your global journey begins with one choice, and you are already moving in the right direction.