FUND YOUR STUDIES

ABROAD WITH
PRODIGY FINANCE
FUND YOUR
FUTURE WITH
PRODIGY FINANCE
TABLE OF
CONTENTS
Greetings from Prodigy Finance 1

We’re Revolutionising International Student Loans 3

Prodigy Finance vs Other Lenders 4

Loan Process 7

APR: Questions & Answers 11

Prodigy Finance Document Checklist 13

Frequently Asked Questions for Parents 15

Testimonials 17

Glossary 19

prodigyfinance.com
info@prodigyfinance.com
GREETINGS FROM
PRODIGY FINANCE
Hello!

Growing up, my parents believed education to be the passport for

tomorrow. A good education creates solid foundations to successfully
tackle future challenges and add value to our society. This is something
that now strongly resonates with me.

Studying a masters at London Business School
was a life-changing experience. It was access
to education with an amazing curriculum led by
a distinguished faculty, a fabulous global
peer-group, and tremendous opportunities to
make a difference in our world.
I am very grateful for my education. And recognise
that many others don’t get the same chances
due to financial constraints. I once read that
a 2014 survey found that 83% of Americans
couldn’t afford a college degree. These financial
constraints are even more real for international
students, particularly those from emerging
markets.
As an international student at INSEAD, our
founder and CEO, Cameron Stevens realised
that conventional lenders don’t have the tools
to understand international mobility or the
impact of education, and are reliant on past
credit history, collateral or a cosigner.

1
 WE’VE GROWN TREMENDOUSLY
SINCE PRODIGY FINANCE FIRST
STARTED LENDING AT INSEAD IN 2007.
WE’VE HELPED ALMOST
7,100 STUDENTS WITH MORE THAN
US$ 325 MILLION IN FUNDING.

Recognising the need for change and with a
vision for borderless lending, Prodigy Finance
was born. Using a proprietary data-driven risk
model, which includes elements such as
pre-study salary, university acceptance and
future income, makes sure our loans are
affordable and removes the need for guarantors
or cosigners. Available to students from 118
different countries and with a completely online
tech platform it’s vastly different from traditional
lenders.
However, our greatest differentiator is actually
our source of funding. Our loans are collectively
funded by a community of alumni, institutional
investors and qualified private investors who
believe in our product and what we’re trying to do.
We’ve grown tremendously since Prodigy Finance
first started lending at INSEAD in 2007. We’ve
helped over 7,100 students with more than
US$325 million in funding. A true borderless
lender, we now support 100+ universities
across the globe and are constantly expanding
our list of supported schools in business,
engineering, law and public policy.
Another one of our beliefs is a sense of
community. Our team has strong school
relationships for a smooth transition to
campus and an enriching study experience.
We also want to help with a successful career
after graduation, and offer benefits such as
career support and networking opportunities.
I consider myself extremely lucky working
at Prodigy Finance, spending each day with
talented people passionate about financial
inclusion and global mobility.
Get ting into a top universit y should be the
challenging part, not funding it.
In the following pages you’ll find more
information about Prodigy Finance and how
we could help finance your passport for
tomorrow.
Rishabh Goel
COUNTRY MANAGER
PRODIGY FINANCE

2
WE’RE REVOLUTIONISING
INTERNATIONAL STUDENT
LOANS.

7100
We believe funding shouldn’t be a barrier to education,
which is why we set out to change the international student
lending market with a borderless credit model available
More than 7,100 loans to
to students from 118 countries, working with over 100 higher education students.
universities across the world.

Prodigy Finance was started by three international students,

who experienced the difficulties of financing an international 78%
degree first-hand, & in 2007, they decided to solve this problem.
78% of our borrowers come
from emerging markets.
Prodigy Finance innovative platform offers loans to
international postgraduate students attending top universities
without requiring a co-signer or collateral. Through our
community platform, alumni, impact investors, and other 118
private qualified entities invest in tomorrow’s leaders, whilst
earning a financial and social return. Students from 118
countries.

3
PRODIGY FINANCE
VS OTHER LENDERS
Since 2007, Prodigy Finance has been revolutionising international student
financing through a borderless credit model which provides loans to
postgraduates attending the world’s top universities.

PRODIGY FINANCE OTHER LENDERS

Community investors supporting top Banks or other conventional financial

Source of funds
talent internationally
Credit assessment Expected income after graduating
Innovative data-driven risk model that
Risk assessment
considers expected future salary
institutions
Historical and current financial situation,
such as collateral and/or cosigner
Traditional credit model that does not
consider expected future salary

Application process Simple and fast, 100% online process Multiple documents, physical meetings

Prodigy Finance offers education loans for up to 80% of the cost of attendance (tuition fees
+ living expenses) at competitive interest rates. Interest is accrued only on the loan balance
outstanding, and early repayment is allowed, with no prepayment penalties.

PRODIGY FINANCE OTHER LENDERS

Loan Amount Up to 80% of cost of attendance Varies based on collateral provided

Interest rate 5.5%-8.5% + LIBOR* 10%+

Variable rate 3 month LIBOR* Local base rate of your country or bank

Currency USD/EUR/GBP Local currency

Loan balance outstanding (only on

Interest calculated on Usually loan balance outstanding
amount disbursed)

Interest calculated from Date of disbursement to school Sometimes before funds are disbursed

Early repayment Any time – no penalties 1 year after graduation

*LIBOR: 3 month LIBOR for your loan currency, used by Prodigy Finance

4
Our process is quick, transparent and fully online. There are no payments expected until 6
months after graduation. We offer a free provisional loan offer with your uniquely assessed
loan terms, and a loan confirmation letter that can be used for visa and other official purposes.
All loan terms provided by Prodigy Finance mention APR (Annual Percentage Rate), a legally
mandated rate that is used to compare loan offers.

PRODIGY FINANCE OTHER LENDERS

Application time 30 minutes Can take days

Process Fully online In person

Loan processing time 2-3 Weeks Over 4 weeks

Provisional offer Free quote with loan terms Usually not available

APR Always provided Not provided

Visa letter Free Usually comes with charges

Sign electronically when Sign it in person before leaving

Loan agreement
you arrive on campus to study abroad
All obligations mentioned in Sometimes ask for blank
Post-dated obligation
loan agreement post-dated cheques

Annual flexibility Yes Maybe

As a community lender, Prodigy Finance is committed to ensuring a smooth experience for

you – during and after your Masters. We have strong relationships with the schools, allowing
us to manage your disbursements – no hassles for you. We work with you for a smooth
transition to campus, while you are studying, and even when you graduate - providing career
and alumni support.

PRODIGY FINANCE OTHER LENDERS

School relationships Yes No

Who disburses the Usually the student

Prodigy Finance
funds to the school sends funds to the school

Welcome to campus kits Yes No

On-campus presence Yes No

Career support Yes No

Network Network, events, etc No

5
Prodigy Finance is a student friendly lender. Students are not required
to repay until 6 months after graduation. We charge only one upfront
administration fee which is added to the loan amount, and fully amortised
across the duration of the loan.

PRODIGY FINANCE OTHER LENDERS

Varies – multiple
Administration fee 2.5% charged once
fees sometimes

Fee payment Becomes part of loan Paid upfront

Charges to convert local

FX charges None
currency to tuition currency

Payment while studying None Interest payments

Varies depending on
Start of repayment 6 months after Graduating
the lender

REPRESENTATIVE EXAMPLE OF INTEREST RATE AND APR

The below provides an example of a Prodigy Finance loan for a USD loan product
with a 10-year repayment period.

LOAN SIZE $40,000

MARGIN 7.5% over 3-month US Libor (Libor varies over the duration of the loan).

US LIBOR 1.304% (as of July 8, 2017).

RATE OF INTEREST 7.5% + 1.304% = 8.804%

FEES Administrative fee of 2.5%, or $1000. This fee will be added to the total loan amount and fully
amortized for a total credit of $41,000.

REPRESENTATIVE APR 9.48% APR variable, factoring in all fees and the effects of interest.

DURATION Repayment period of 10 years, plus the study period of 21 months and a grace period of
6 months = 147 months.

TOTAL AMOUNT PAYABLE $72,993.21

AMOUNT OF EACH MONTHLY REPAYMENT $607.84

6
LOAN PROCESS
COMPLETING A LOAN APPLICATION ONLINE IN 30 MINUTES

Search on our website to find out if Prodigy Finance supports your school:
https://prodigyfinance.com/get-a-loan
Find your school

Browse through details of Prodigy Finance’s support for your school,

including programmes supported, maximum loan amount and rates
offered by Prodigy Finance.
Find out more

Click on the “Apply Now” button to register, and start your application.

Register

Complete information for sections on School & Class, Personal

Info and Residential Info.
Start Application

Complete the Budget by outlining how you will fund your cost of attendance,
including scholarships, sponsorships, savings and family contributions,
Prodigy Finance loan, and any other loans.
Budget

Complete information for sections on Income, Liabilities, Assets,

and Additional Info.
Complete Application

Click “Submit” to send your application to Prodigy Finance.

Submit

7
MOVING FROM PROVISIONAL OFFER TO LOAN APPROVED

Post-submission, an applicant may receive one of three responses:

1. INSTANT PROVISIONAL OFFER

In some cases, Prodigy Finance’s proprietary data science model will determine your
loan affordability and make an instant provisional offer, including the loan amount,
interest rate and loan period.

2. UNDER REVIEW
In other cases, the Prodigy Finance credit committee will need to perform a manual
review of your application to determine your loan affordability. You should receive
a response within 5 business days.

3. DECLINED

PROVISIONAL OFFER
Should you receive a provisional offer, you will have up to 14 days to accept the offer terms.
Post-acceptance, you will be prompted to submit soft copies of certain documents for
verification.

VERIFICATION
Prodigy Finance is registered in the UK, and regulated by the Financial Conduct Authority
(FCA). To comply with Know Your Customer (K YC) and Anti Money Laundering (AML)
regulations, you will be required to submit soft copy documents to prove your identity,
admission, residence, credit history and sources of funds towards your cost of attendance.

LOAN APPROVED
Should all your documents be verified successfully, you will receive a loan approval with
the same terms as your provisional offer. You may use this document as proof of funds in
your visa application.

YEAR 2 PRE-APPROVAL
The provisional offer is on an annual basis – there is one loan agreement for each year of
study. If you are applying to a programme with a study period of over 1 year, then along with
a provisional offer for year 1, you may also receive a pre-approval for year 2. To convert this
pre-approval to a loan agreement for your year 2 studies, you will be prompted to complete
another loan application before year 2.

8
LOAN APPROVED! WHAT’S NEXT?

LOAN AGREEMENT LET TER

This document will contain all details of your loan with Prodigy Finance, including
the loan amount, administration fee, interest rate, annual percentage rate (APR)
and repayment period.

LOAN SIGNATURE
Prodigy Finance will contact you about signing your loan once you arrive in your
countr y of study. Your digital signature will be counter-signed by Prodigy Finance,
making the agreement binding on both parties.

DISBURSEMENT
After signing your loan, your funds will be disbursed directly to your university.
Should the disbursed amount exceed the cost of tuition for the disbursement
period, your school will transfer the excess funds to your personal account in
your countr y of study.

STUDY PERIOD
There is no loan repayment required during your entire study period. You may
choose to make voluntar y prepayments of any amount at any point of time during
this period. Any prepayment will reduce your loan amount outstanding.

GRACE PERIOD
Prodigy Finance offers a grace period of 6 months after graduation for all loan
applicants studying at full-time programmes, during which no loan repayment is
mandated. Voluntar y prepayments and their resultant benefits remain the same
as during the study period.

REPAYMENT PERIOD
You will receive monthly statements with the exact repayment amount due
ever y month. Any prepayment amount higher than the required monthly amount
will result in a lower monthly repayment required for the remainder of the loan
repayment period.

PRODIGY FINANCE INVESTOR (OPTIONAL)

Once you have repaid your entire loan, should you qualify, you will have the
option to participate as an investor in Prodigy Finance’s education bonds to
support future borrowers.

9
WE’VE FUNDED
OVER 6000 MBAs
AND 500 MS DEGREES
AROUND THE WORLD

10
APR: QUESTIONS & ANSWERS
Understanding how APR works will help you compare loan products
from different lenders.
WHAT IS ANNUAL PERCENTAGE RATE
(APR)?
Annual percentage rate (APR) is the annual rate
charged for borrowing, and is expressed as a
percentage that represents the actual yearly
cost of funds over the term of a loan.
It is a legally mandated rate that lenders must
share, so that the actual rate applicable in
a loan agreement is clearly understood.
WHAT APR IS NOT:
It is NOT the rate at which interest is accrued.
APR captures all fees required to service a loan,
including the interest accrued. Hence, APR is
always greater than the interest rate.
WHY USE APR:
APR indicates the total cost of borrowing and
servicing your loan, rather than only taking the
interest rate into account.
HOW TO USE APR:
Use APR to compare loan products. It should
not be used to calculate interest on your loan.
HOW DOES PRODIGY FINANCE
CALCULATE INTEREST?
Prodigy Finance uses the simple interest rate
accrued monthly on the outstanding balance.
Monthly Interest = Loan Balance Outstanding *
(Simple Interest Rate) / 12
11
Interest accrues on the principal only during
grace. At the point of first repayment (the end
of the grace period) simple interest accrued
during grace is capitilized (added) to the original
principal amount. Thereafter simple interest
is accrued against this Outstanding Principal
Balance.
WHAT IS THE INTEREST RATE?
Your simple interest rate is the sum of your fixed
margin interest rate quoted by Prodigy Finance,
and 3-month LIBOR for the quarter.
(For example, 7% + LIBOR (1.16%) = 8.16%)
WHY DOES PRODIGY FINANCE USE LIBOR?
LIBOR (London Interbank Offered Rate)
dynamically prices the cost of capital to protect
borrowers and investors from market shocks.
HOW DOES PRODIGY FINANCE SET LIBOR?
Prodigy Finance uses the 3-month LIBOR as
the variable base rate for the loan. It is set for
the quarter, on 8 January, 8 April, 8 July and 8
October.
DOES PRODIGY FINANCE CHARGE AN
ADMINISTRATION FEE?
Prodigy Finance charges a one-time
administration fee of 2.5% of the loan amount,
or $500/€500/£400 (whichever is higher), and
adds it to the loan amount.
ARE THERE ANY OUT-OF-POCKET FEES? WHAT ARE THE COMPONENTS OF
There are NO out-of-pocket fees. Prodigy PRODIGY FINANCE APR?
Finance only charges the administration fee • Interest rates (including margin and
which is added to the loan amount. base rates)
• Administration fee
• The effects of time when annualising,
including grace periods
Prodigy Finance calculates the APR in accordance with the FCA
handbook section CONC App 1.2.6

ANNUAL PERCENTAGE RATE VS INTEREST RATE

APR INTEREST R ATE

Compare loan offers of

Objective Calculate interest
the same duration

Includes other fees Yes No

REPRESENTATIVE EXAMPLE OF INTEREST RATE AND APR

The below provides an example of a Prodigy Finance loan for a USD loan product
with a 10-year repayment period.

LOAN SIZE $40,000

MARGIN 7.5% over 3-month US Libor (Libor varies over the duration of the loan).

US LIBOR 1.304% (as of July 8, 2017).

RATE OF INTEREST 7.5% + 1.304% = 8.804%

FEES Administrative fee of 2.5%, or $1000. This fee will be added to the total loan amount and fully
amortized for a total credit of $41,000.

REPRESENTATIVE APR 9.48% APR variable, factoring in all fees and the effects of interest.

DURATION Repayment period of 10 years, plus the study period of 21 months and a grace period of
6 months = 147 months.

TOTAL AMOUNT PAYABLE $72,993.21

AMOUNT OF EACH MONTHLY REPAYMENT $607.84

12
PRODIGY FINANCE
DOCUMENT CHECKLIST
In order to confirm your loan, we need supporting documents to
verify the information you shared in the application form.

Prodigy Finance is a responsible lender, which is why we require students to submit

documentation that will verify the details submitted in their application.
These documents are necessary to comply with responsible lending, Know Your Customer
(KYC) and anti-money laundering regulations. This practice is consistent across the
countries we lend to and support.

PROOF OF ADMISSION PROOF OF SALARY (IF APPLICABLE)

Acceptance letter from your university.
Email confirmation from your school with
class, start and end dates.
PROOF OF IDENTITY
Current passport
Please upload the front page of your
passport with photo and barcode
Last three salary slips issued by your
employer
Most recent bank statement confirming
incoming salary
If you have recently changed jobs, we’ll consider
an average of your salary over the period, in
accordance with the three months salary slips
you provide us.

PROOF OF CURRENT ADDRESS PROOF OF SAVINGS (IF APPLICABLE)

Document that confirms your residential
address, such as:
1. Utility or service bill that indicates
current residence
2. Bank or card statement (dated in the
past three months)
3. Rental agreement
Proof of permanent address such as passport
or any other national ID is not acceptable.
If you live with your parents, you’ll need to
provide a letter from them, indicating that you
live there. If you live at another rental location,
we will accept of copy of your lease agreement.
Proof of liquid assets you intend to use
to support your education. List of accepted
liquid assets:
1. Bank Statements
2. Fixed Deposits
3. Equity/Mutual Funds
4. Provident Fund
Statements must be dated within the last three
months. In the case of a Provident Fund, it must
indicate the value of the funds that can be made
available immediately.
For any other liquid assets you may wish to use,
please confirm with Prodigy Finance by emailing
info@prodigyfinance.com. Physical assets such
as house, property, car, gold, etc, will not be
accepted.

13
CREDIT REPORT
Credit Report for all countries you have
resided in the past 3 years.
Please see our FAQs page for list of accepted
Credit Reports.
PROOF OF FAMILY SUPPORT (IF APPLICABLE)
Completed financial contribution form
Bank statement from your family member
(clearly showing that they have the funds to
support you).
PROOF OF SCHOLARSHIP (IF APPLICABLE)
Letter of offer from the institution.
PROOF OF COMPANY SPONSORSHIP
(IF APPLICABLE)
Letter of offer from your employer, indicating
amount and how the funds may be used (i.e.
tuition and/or living expenses).

MORE QUESTIONS?
If you have any questions, take a look at our FAQs on prodigyfinance.com
or get in touch at info@prodigyfinance.com and we’d be happy to help.

14
FREQUENTLY ASKED
QUESTIONS, FOR PARENTS.
We understand that as parents, you want the best for your son or daughter.
So we’ve put together answers for questions you may have.
WHY DOES PRODIGY FINANCE ONLY
SUPPORT CERTAIN SCHOOLS?
Prodigy Finance builds a community of investors
at each school to fund incoming students. We
are constantly expanding our list of supported
schools.
WHAT IS REQUIRED FOR A SUCCESSFUL
APPLICATION WITH PRODIGY FINANCE?
1. Admission letter from a supported school and
programme
2. Funds for whole cost of attendance (including
Prodigy Finance loan)
3. No significant debt
HOW DOES PRODIGY FINANCE LEND?
Prodigy Finance is headquartered in London and
is regulated by the Financial Conduct Authority
(FCA) of the United Kingdom. We have a unique
lending model, enforceable in 118 countries.
WHO INVESTS IN PRODIGY FINANCE LOANS?
Prodigy Finance sources funds from community
investors, including alumni, school endowments,
impact investors and other qualified private
investors.
WHY DO COMMUNITY INVESTORS INVEST IN
PRODIGY FINANCE?
Our community investors understand the value
of education and seek to enable top talent to
access international education without financial
constraints such as collateral or a cosigner.
15
HOW DOES PRODIGY FINANCE ASSESS
LOAN TERMS?
Prodigy Finance uses proprietary data-driven
risk models to assess students’ future earning
potential and understand the disposable income
required to comfortably repay the loan.
DOES PRODIGY FINANCE ACCEPT
COLLATERAL?
Prodigy Finance does not ask for collateral or a
cosigner, and will never require it as part of the
loan application.
WHY DOES PRODIGY FINANCE NOT
REQUIRE COLLATERAL?
Prodigy Finance enables students to fund their
education on their own merit, rather than collater-
al or parents’ credit worth.
CAN A PARENT’S PROFILE HELP WITH
A STUDENT LOAN?
Prodigy Finance assesses the loan application
on the basis of the individual student. Parents’
information is not required.
WHEN SHOULD YOUR SON/DAUGHTER
APPLY FOR A PRODIGY FINANCE LOAN?
Prodigy Finance allows students to receive a
quote (Provisional Offer) with loan terms at any
point. For a confirmed loan, the student needs
to have their admit letter for the school and
programme.
WHAT DOCUMENTS ARE REQUIRED?
For the initial loan assessment, there are no
documents required upfront. If the student
accepts the provisional offer, they need to upload
scanned copies of their documents to confirm the
information in the application:
1. Passport and proof of address
2. Letter of admission from the school
3. Proof of salary (if applicable)
4. Proof of savings (if applicable)
5. Proof of family support (if applicable)
6. Credit report
7. Proof of any other sources of funding (if
applicable)
MY SON/DAUGHTER HASN’T WORKED IN A
JOB AND HAS NO SALARY. WILL THIS IMPACT
ELIGIBILITY?
Job experience is not an eligibility criteria for a
loan with Prodigy Finance. Many of our borrowers
take a loan straight after their undergraduate
degree.
HOW ARE PARENTS’ INVOLVED IN THE LOAN
PROCESS?
Parents can be involved by providing proof of
family support if they are supporting part of their
son or daughter’s education.
WHERE DO WE MEET PRODIGY FINANCE
STAFF TO DISCUSS THE LOAN?
Prodigy Finance is a global lender supporting 118
countries. Though the loan process is fully online,
we also conduct many physical information
sessions where you can speak to us
in person.
WHAT ARE THE PROS AND CONS OF TAKING
A LOAN IN USD?
If your son or daughter expects to earn in USD
after graduation, they would avoid currency
fluctuations and transfer charges by taking a
loan in USD. However, if they return to their home
country after graduating and earn local currency,
future loan repayments will still need to be made
in USD, so they may be affected by fluctuations in
foreign exchange rates.
WHEN DOES MY SON OR DAUGHTER START
REPAYING THE LOAN?
Full-time students start repayments six months
after graduating.
CAN PARENTS PAY THE INTEREST WHILE THE
STUDENT IS STUDYING?
Prodigy Finance does not require any payments
until six months after a full-time student
graduates. However, the student can start
repayments any time. There are no penalties for
early repayment.
WHAT ARE THE COMMUNITY BENEFITS OF
PRODIGY FINANCE?
1. Career support for Prodigy Finance alumni
2. On-campus presence for an enhanced school
experience
3. Network to meet new people, find mentors, etc.
DOES PRODIGY FINANCE OFFER TAX
BENEFITS?
Prodigy Finance cannot offer information about
local tax benefits, as the company is based out
of UK.
IS THERE AN INSURANCE POLICY WITH
PRODIGY FINANCE?
The loan agreement is between prodigy finance
and the student. As there is no co-borrower, no
insurance is needed to protect parents, should
the student pass away.
16
HEAR FROM OUR
BORROWERS
We could tell you more about what we do,
the students we’ve funded and the challenges
they’ve faced - but we thought you’d like to
hear it in their own words.

Without Prodigy Finance, I would not MY PRIORITY WAS TO OWN MY

be able to achieve a lifelong dream
of studying law in the US. I have been
immensely impressed with Prodigy
Finance’s representatives; it seems
like a dynamic, interesting company.
Prodigy Finance also seems to bring
together a diverse range of alumni,
and I would relish the opportunity to
contribute to that network.
Jason Mitchell, Northwestern University
– Pritzker School of Law
FUNDING COMPLETELY, AND NOT
BURDEN MY PARENTS WITH A
REQUEST FOR COLLATERAL.
PRODIGY FINANCE FIT MY
REQUIREMENTS, AND THE
ENTIRE LOAN PROCESS WAS
VERY SMOOTH.
Shishir Suman, Georgia Institute of Technology –
Scheller College of Business

PRODIGY FINANCE HAS BUILT I really appreciate your transparency

TRUST BY BEING TRANSPARENT
AND RESPONSIVE, MAKING ME
COMFORTABLE WITH THE
ONLINE LOAN PROCESS AND
REDUCING MY ANXIETY
ABOUT FUNDING.
Apurti Marodia, Cornell University
College of Engineering
in passing on benefits to borrowers.
I’d love to give back to the community
some day by becoming a Prodigy
Finance investor myself.
Priyadarshini Mitra,
Carnegie Mellon University –
Heinz College School of
Information Systems and Management

17
Being a banker myself, it’s unimaginable
in the Indian context for a lender to
fund a student purely based on merit.
Finance is a major block for parents but
now help is on the way with Prodigy
Finance.
Srinivas Suresh
Parent of Indian borrower
Bank Manager
BEING AN ENGINEER WITH
NO PRIOR KNOWLEDGE OF
FINANCE, THE LOAN PROCESS
WAS INCREDIBLY SIMPLE AND
EASY. PRODIGY FINANCE SWEPT
ME OFF MY FEET AND CAME AS
A LIFE SAVER FOR ME.
Sandhya Suresh, University of
Madison-Wisconsin - College of Engineering
As a parent, I believe in preparing
children for the road, rather than
preparing the road for them.
I appreciate that Prodigy Finance
does not consider parents’ financial
background to project their
child’s future.
Laxmi Srinivas
Parent of Indian borrower
Architect
PRODIGY HAS ALLOWED ME TO
LIVE A DREAM I NEVER THOUGHT
WOULD BE POSSIBLE. THIS
NEW, YOUNG AND INNOVATIVE
COMPANY IS GOING TO PROVIDE
OPPORTUNITIES TO CHANGE THE
LIVES OF PEOPLE ALL OVER
THE WORLD.
Helena Rati, McGill University – Desautels
Faculty of Management
Personally, I liken Prodigy to a family;
someone who looks out for you,
someone who is always there within
a moment’s notice, someone who
does not treat you like a number, and
importantly, someone you can count
on every step of the way throughout
your postgraduate journey.
Denis Sop,
INSEAD
PRODIGY FINANCE ENABLED ME
TO CHANGE GEOGRAPHY AND
PURSUE MY DREAM CAREER BY
FINANCING THE EDUCATION
REQUIRED. IT MEANS THE
ABILITY TO LIVE MY DREAMS
AND ACHIEVE MY POTENTIAL.
Chijioke Onyekwelu,
Yale School of Management
18
GLOSSARY OF TERMS USED
BY PRODIGY FINANCE
We’ve created this handy glossary to help you make sense of some of
the terminology we use in our easy application process.
COST OF ATTENDANCE
Your university calculates an official amount for
the cost of attending your programme, including
tuition, fees, and living expenses.
To confirm your programme’s unique official cost
of attendance, please contact your school.
For students attending programmes in the US,
universities will not allow any loans exceeding
this cost of attendance.
BUDGET
The “budget” section in your application is a
breakdown of how you plan to pay for the full
cost of attendance.
This breakdown needs to include all types
of funding you will use to pay for your cost of
attendance. The total budget is the sum of
savings, deposits, gifts, scholarships, other
loans, etc, including the amount you’re seeking
from Prodigy Finance and must add up to the
total cost of attendance.
If your budget includes any other loans apart
from the Prodigy Finance loan, please state the
source and repayment terms (amount, rate, and
repayment period).
NON-DEBT FUNDS
This refers to any funding that you listed in your
budget that is not a loan, such as personal
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savings and gifts from family and friends.
You will be required to provide proof of these
funds, with supporting documents such as bank
statements, fixed deposits, investments (mutual
funds, equity) and pension funds.
DEBT FUNDS
This refers to any additional funds listed in your
budget that have been borrowed to fund your
cost of attendance, such as other education
loans, personal loans, loans from family
members (even at 0% interest).
FAMILY CONTRIBUTION OR GIFTS
A family contribution or gift is the amount of
funds in your budget that you receive from a
family member, friend or donor without having to
pay it back.
You will need to upload official savings or
investment account statements of the person
providing the contribution or gift, showing the
availability of funds to the amount as stated your
application.
You should also include contact details and
a letter from the relevant family member(s)/
contributor stating the amount of funds that will
be made available.
UNDER REVIEW
When you submit your application, you may get
one of these 3 responses:
• Provisional offer
• Under review
• Decline
Under review means the Prodigy Finance credit
committee needs to take a closer look at certain
aspects of your loan application before making
a decision. Our credit committee will review the
details of your application, determine
your loan affordability, and respond to you within
five working days.
PROVISIONAL OFFER
If your online application is approved you
will receive a provisional offer. This offer is
conditional on you providing documents to
support and verify the financial information
indicated in your original application.
You will be given up to 14 days to accept
the provisional offer, and then move into the
verification stage where you will need to upload
your supporting documents.
FIXED MARGIN
The amount of interest you pay on your Prodigy
Finance loan is calculated based on a “fixed
interest margin” plus a “base rate”. The fixed
margin does not change over the entire duration
of the loan (study, grace and repayment
periods). However, the fixed margin floats on the
3-month LIBOR base rate, which is variable.
BASE RATE
The amount of interest you pay on your Prodigy
Finance loan is calculated based on a “fixed
interest margin” plus a “base rate”.
Prodigy Finance uses the LIBOR base rate (the
“Base Rate”).
• LIBOR varies from time-to-time and is based
on market fluctuations beyond Prodigy Finance’s
control.
• LIBOR used for Prodigy Finance’s loans is
determined quarterly on 8 January, 8 April, 8
July and 8 October each year (the “Base rate
determination dates”).
For loans in GBP, the 3-month GBP LIBOR
(0.297% as of 8 July, 2017) is applied.
For loans in USD, the 3-month USD LIBOR
(1.304% as of 8 July, 2017) is applied.
For loans in EUR, the 3-month EURIBOR is
applied. Since this rate is currently negative
(-0.331% as of 8 July, 2017), there is currently a
zero base rate applied to EUR loans.
ADMINISTRATION FEE
For all programmes which started in 2016 to
now, 100% of the administration fee is added
to the principal of the loan, and fully amortised,
meaning there is no cash payment by the
borrower to Prodigy Finance.
The administration fee is charged on the loan’s
date of disbursement. In the case of multiple
disbursements, the full fee will be charged on
the first disbursement date.
Currently, the administration fee is 2.5% of the
loan amount, or $500/€500/£400 (whichever is
higher).
AMORTISED
Amortisation is the process of extending a
payment on a fixed duration of time. Specific
to your Prodigy Finance loan, we fully
amortise your administration fee. When your
administration fee is added to the loan amount,
the payments of this fee are spread out evenly
across your regularly-scheduled monthly
payments.
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ANNUAL PERCENTAGE RATE (APR)
APR (annual percentage rate) is the annual cost
of borrowing and is used to enable borrowers to
compare competing loan offers.
APR will include all costs associated with the
loan, including your interest rate, the effects of
compounding interest, and any administrative or
origination fees.
When comparing your offer to other financing
opportunities, note that APR is not the rate at
which interest will accrue 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 compounding interest).
There are no fees for early repayment, no surety
agreements or other contracts that must be
entered into along with your Prodigy Finance
loan.
LOAN CONFIRMATION LETTER
Should you require documentation to prove your
funds for visa purposes or financial guarantee
to your school, we’ll issue you with a loan
confirmation letter. We’ll only send this letter
after you’ve completed all of the steps for your
loan application, and your loan agreement has
been finalised.
DISBURSEMENT
After you’ve signed your loan agreement,
Prodigy Finance disburses your loan funds to
the corresponding university/school to cover
either tuition (total or partial, according to your
loan amount) or tuition and living expenses (this
varies from school-to-school – please visit the
school-specific loan terms page on our website
to view the maximum loan amount we can offer
for your school, as well as if the loan can be
used for living expenses in addition to tuition).
GRACE PERIOD
Prodigy Finance offers a grace period to
borrowers. In most cases, the grace period
for full-time courses is the study period plus
six months after classes end, and for part-
time courses is three months after the final
disbursement to the school. Please refer to
your school’s loan page on our website or to
your loan agreement to determine the terms
corresponding to your programme.

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 be used for your visa application.

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DESPITE BEING ABLE TO
PROVIDE COLLATERAL AND
A COSIGNER, WE SUPPORT
OUR DAUGHTER’S DECISION
TO FUND HER OWN
FUTURE WITH A PRODIGY
FINANCE LOAN.

I BELIEVE TECHNOLOGY
IS PLAYING A BIG PART
IN DISRUPTING LENDING
AND DEMOCRATISING
MASTERS EDUCATION.
Mother of Sandhya Suresh,
student at the University of Wisconsin-Madison
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 WE’VE FUNDED
STUDENTS FROM
118 COUNTRIES

© Prodigy Finance Limited 2007 - 2017. All Rights Reserved. Prodigy Finance Limited is incorporated in the United Kingdom
(Company Number 05912562) with its registered address at Palladium House 1-4 Argyll Street, London, W1F 7LD and registered
with the Office of the Information Commissioner (Reg. No. Z9851854). Prodigy Finance is authorised and regulated by the
Financial Conduct Authority (firm registration number 709641) for certain consumer credit activities and for investment
activities for investors who have agreed to its terms. Prodigy Finance loans are offered to eligible borrowers who are studying
outside of their country of residence and the loans are governed by English law.