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Provisional Offer

Rates are based on several variables, relating to both you as the applicant, and the quality of credit information that we can obtain for you. Other factors that could affect the interest rate for your loan offer include your ability to afford repayments on the loan, our cost of capital for your school, and other market rates that you may have access to.

We typically provide the most competitive rate upfront, but your rate may change based on information contained in your credit report, which is obtained later in the application process.

When comparing your offer to other financing opportunities, note that ‘APR’ is not the rate at which interest will accumulate on the loan, but rather a legally-mandated rate that includes the effect of all financing costs (i.e., factoring in fees, and the effects of interest). There are no fees for early repayment, and no surety agreements or other contracts that must be entered into in tandem.

Watch this video and listen to one of our colleagues explain what the difference is between APR and the interest rate

Rates are determined based on a number of variables, relating to both you as the applicant, and the quality of credit bureau information that we can obtain for you. Other factors include your affordability, school's requirements, your savings, etc. Unlike traditional lenders that assess on current salary, we will look at each student future salary potential after finishing their course. Each decision is customized for every applicant.

We provide the most competitive a rate upfront, but your rate may change based on information contained in your credit report, which we’ll as you to upload during the verification  stage.

Watch this video and listen to one of our colleagues explain which factors go into our credit decision

Watch the video below and listen to one of our colleagues explain what the difference is between APR and the interest rate.

How is your APR calculated?

We calculate the APR in accordance to the FCA guidelines stated in CONC App 1.1.9

The Annual Percentage Rate (APR), assuming no change in the Base Rate and repayment schedule, reflects what the loan will cost you each year for the total length of the loan. The total length of the loan can be calculated as the length between the first disbursement date up until the last repayment date. The APR considers the administration fee (if any) as well as interest accrued during your grace period.

As a reminder, Prodigy Finance uses a simple interest product. Interest is calculated daily and is accrued monthly from each Disbursement Date for the APR calculation. Interest accrues on your “Outstanding Principal Balance”, which initially consists of your Total Amount Financed, or such part of it as has been disbursed if it is not yet fully disbursed. Your Outstanding Principal Balance will increase with any further disbursements.

Unpaid interest is capitalised once on your first Loan Repayment Date in this calculation and becomes part of your Outstanding Principal Balance. After that, your Outstanding Principal Balance decreases with each assumed monthly repayments of principal.

APR (Annual Percentage Rate) is the annual cost of borrowing. As a UK lender, we calculate the APR in line with FCA (Financial Conduct Authority) guidance.

As such, APR will include all costs associated with the loan, including your interest rate, the effects of interest, and any administrative or origination fees. APR can be used to compare various offers between lenders to figure out which loan terms are best for you. 

Watch this video and listen to one of our colleagues explain what the difference is between APR and the interest rate.

Your rate of interest has two parts - your fixed margin and the base rate (i.e. 3-month Libor). The base rate varies from time to time due to market fluctuations beyond our control.

If the base rate has increased that means your monthly repayment will do so as well as will your APR.

More information regarding Libor rates can be viewed at https://www.theice.com/iba/libor

Watch this video and listen to one of our colleagues explain what the difference is between APR and the interest rate.

3-month LIBOR (London Interbank Offered Rate) is a benchmark rate used by lenders around the world. LIBOR is variable, which means that it fluctuates over time. This variable base rate, added to your fixed margin rate of interest, will give you the total rate by which your Prodigy loan will accrue interest.

Depending on the currency of your loan is the benchmark rate that is going to be used. If your loan is in dollars, the benchmark used in your loan will be the US LIBOR; if your loan is in euros, the benchmark will be the EURIBOR and if your loan is in British pound sterling, the benchmark will be the British pound sterling LIBOR.

Interest begins to accrue when your funds are sent to the school.

Interest is only calculated on funds that have already been disbursed - i.e. Prodigy Finance has sent them to the school. If your loan has multiple disbursements, we only calculate interest accrued on funds that have already been sent, not the total loan amount at once.

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.

The Prodigy loan can NOT be used to pay any acceptance deposits, commitment, or reservation fees required to secure your place at the school.

In some instances, our disbursement date falls after the first tuition instalment is due. We work closely with the schools to set clear disbursement dates, when we’ll send your funds directly to the school. Unfortunately, our disbursement date is set for the class as a whole and cannot be adjusted on an individual basis. Additionally, as the final loan agreement can only be signed after arrival on campus, funds cannot be disbursed prior to the start of class.

Prodigy will work hard to ensure that our students are not charged late fees on funds that are sent from us to the school. Very often, schools choose to waive any late fees that they would normally charge for late payments. Should the disbursement date fall after the first payment is due to the school, please contact your school's financial aid office to discuss the implications. 

Funds will be sent to the school on the schedule outlined in your loan agreement. If your loan agreement states that the full loan amount will be disbursed to the school and the loan amount exceeds the outstanding tuition amount at the time of disbursement, you can work with the school's finance office to have any excess funds transferred to your personal account after they’ve been sent to the school.  This can only be done in cases where the loan can be used towards tuition as well as living expenses. To learn more about the specific policies for your school, please refer to the school specific page on our website.

Worried about late fees? Watch this video and listen to one of our colleagues explain to you how we deal with late fees.

You can request a reduction in the loan amount at any time before signing the final loan agreement upon arrival on campus at the start of class. Should you decide to reduce your loan amount, you will not be penalised.

If you wish to increase your loan amount, send us an email requesting an increased loan amount and your reasons for this change.  Our Credit Committee will review your request and revert with a decision as soon as possible.  Should your request be approved we will then issue you with updated loan documents including your new corresponding administration fee resulting from the increased loan size which will be amortized in your loan.

Should you wish to withdraw your application after receiving an offer in order to explore other options, you are welcome to do so; simply inform us of your decision and we’ll then release those funds so they may be assigned to other deserving candidates. If you’d like to re-apply in the future, you will have to start a new application.

Watch this video and listen to one our colleagues explain how to apply for a higher 2nd year loan.

Watch this video and listen to one our colleagues explain how you can apply for a higher 2nd year loan than you initially requested

Prodigy Finance uses a predictive scorecard in order to take future earning potential into account during application review. As the parameters for different schools affect the outcome of this predictive assessment, we cannot redirect your loan towards another school.

If you choose to attend another school, you will need to submit a new application detailing your budget for the new school. You can do this by logging into your account and starting a new application.

The loan duration, as well as the 14-day withdrawal period mentioned in your loan agreement, will start on the day that we execute the agreement by countersigning the legal document. This occurs as soon as we receive your signed copy via EchoSign.

You can withdraw your application at any time prior to signing the final loan agreement.  There are no charges or penalties associated with this.

If you’d like to withdraw your application, please let us know as soon as possible so we can reallocate the funds to another deserving student.

Yes. Prodigy Finance sends the funds directly to the school. We do not send loan funds directly to students.

The full amount of your Prodigy loan will be sent directly to your school. Any amount in excess of your tuition due, when applicable, will then be transferred from the school to your personal bank account so that you can use it for living expenses and other costs.

If you have questions about how this process works at your schools, please contact the Financial Aid Office at your school.

The Prodigy loan can NOT be used to pay any acceptance deposits, commitment, or reservation fees required to secure your place at the school.

In some instances, our disbursement date falls after the first tuition instalment is due. We work closely with the schools to set clear disbursement dates, when we’ll send your funds directly to the school. Unfortunately, our disbursement date is set for the class as a whole and cannot be adjusted on an individual basis. Additionally, as the final loan agreement can only be signed after arrival on campus, funds cannot be disbursed prior to the start of class.

Prodigy will work hard to ensure that our students are not charged late fees on funds that are sent from us to the school. Very often, schools choose to waive any late fees that they would normally charge for late payments. Should the disbursement date fall after the first payment is due to the school, please contact your school's financial aid office to discuss the implications. 

Funds will be sent to the school on the schedule outlined in your loan agreement. If your loan agreement states that the full loan amount will be disbursed to the school and the loan amount exceeds the outstanding tuition amount at the time of disbursement, you can work with the school's finance office to have any excess funds transferred to your personal account after they’ve been sent to the school.  This can only be done in cases where the loan can be used towards tuition as well as living expenses. To learn more about the specific policies for your school, please refer to the school specific page on our website.

One month before we release the funds to your school, you’ll receive an email that your final loan agreement is ready to sign. When you receive the message, all you’ll need to do is log on to the Prodigy Finance dashboard. The entire signature process is done electronically – there’s no need to print paper copies.  

Before you travel to campus, please let us know which email address and phone number you’ll use while studying. If we do not have your current email address, we won’t be able to send the final version of your loan agreement to sign online.

One month before we release the funds to your school, you’ll receive an email that your final loan agreement is ready to sign. When you receive the message, all you’ll need to do is log on to the Prodigy Finance dashboard and follow the instructions to sign. The entire signature process is done electronically – there’s no need to print paper copies.

At Prodigy we’re constantly adding new innovations to our loan application process in order to make it as easy as possible for you to pursue an international degree. We’ve put in countless hours to understand the regulatory landscape in each country where we work, and we’re proud to announce that you can log in from any of the following countries to sign your loan agreement:

Argentina
Brazil
Chile
Egypt
Georgia
Hong Kong
Indonesia
Japan
Kenya
Mexico
Netherlands
Nigeria
Pakistan
Peru
Philippines
Russian Federation
Singapore
Spain
Switzerland
Ukraine
United Kingdom
Bolivarian Republic of Venezuela

Before you travel to campus, please let us know which email address and phone number you’ll use while studying. If we do not have your current email address, we won’t be able to send the final version of your loan agreement to sign online.

One month before we release the funds to your school, you’ll receive an email that your final loan agreement is ready to sign.

To sign, log on to your Prodigy Finance dashboard. Once you’re there, signing the final loan agreement is a two-step process:

    1. Confirm that you have read the updated Pre-Contract Information (PCI) by marking the task on your dashboard as complete (this will then automatically transition to the Loan Agreement)
    2. Sign the Loan Agreement by following the instructions online.

Should you require documentation to prove your funds for visa purposes or financial guarantee to the school, we will issue you with a Loan Confirmation letter. Please note that we will only issue you with such a letter after all of the administrative steps of your loan application are complete and your loan has been finalised.

An electronic copy of your Loan Confirmation letter will be uploaded to your dashboard and can be used as financial guarantee for the school.  In some instances, this electronic copy may also support your visa application. 

If you’re attending a school in the UK, we advise you use your original Loan Confirmation letter when applying for your visa. We can send this letter via DHL at an additional fee of GBP 25.

Expected delivery time via DHL is 3 business days. We will provide you with a tracking number as soon as the document has been collected by DHL. If it has not been delivered within 1 week from the date of collection, we will send another copy via DHL at no additional charge to you.

In the interest of fairness towards all applicants, we generally do not extend the deadline for acceptance of the loan offer. However, if you reach out to us and explain your situation, we may be flexible on the deadline. Please email us at info@prodigyfinance.com to request a deadline extension, if necessary.

Remember: you can withdraw your application at any time prior to signing the final loan agreement upon arrival on campus.

We are happy to extend the deadline on the upload of verification documents, as long as it still allows us enough time for us to complete the application process prior to sending the funds to your school.

Watch this video and listen to one of our colleagues explain how and when you will receive a Loan Confirmation letter from us.

 Watch this video and listen to one of our colleagues explain how to get a loan confirmation letter that you can use to support your VISA application