Prodigy Finance Vs Other Indian Banks For Study Abroad Loans

Higher education in a foreign country requires a hefty amount, which is challenging to arrange. However, the changing currency rates and inflation have added to the pressure. To counter this concern, the usage of education loans is increasing. Even if the demand is increasing, Indian banks ask for a long list of documents, including patience and time. Thus, these old-age ways become a concern for the students, especially those who are looking for funds in a hurry. In this chaos, the new-age lenders like Prodigy Finance are bringing a revolution. How? All the facts and features are explained in the guide below. 

Overview: Prodigy Finance vs Indian Banks

The general overview could help you differentiate between the features offered by an Indian lender and Prodigy Finance.

Features of Education Loan Prodigy Finance vs Indian Banks

Knowing the loan features that both lenders provide to the borrower helps in understanding the offerings and also affects the deciding factors between the lenders. 

Loan Structure:

Prodigy Finance offers two types of unsecured loans: co-signer loans and no co-signer loans. However, collateral isn't required for either loan, and the eligibility is based on academic profile and future earning potential.

On the other hand, Indian banks provide only one type of unsecured loan where a co-applicant is mandatory. The eligibility is based heavily on the co-signer's financials.

Application Process:

Prodigy Finance has a fully online process, quick approval turnaround, and no physical documentation needed.

But, Indian banks have offline with in-person visits, lengthy approval times, and extensive paperwork.

Loan Disbursement:

Funds are disbursed by Prodigy directly to the university, with options for multiple disbursements and currency match. However, the amount is disbursed when a student reaches the university and signs the loan agreement. Therefore, help you avoid extra interest if any delay happens during the visa process.

On the other hand, Indian banks disburse in Indian rupees and require manual coordination for international transfers, with fewer options for phased disbursement.

Read More:

• 
  SBI Education Loan Disbursement Process
• 
  Axis Bank Education Loan Disbursement Process
• 
  ICICI Bank Education Loan Disbursement Process
• 
  Disbursement Process of UBI Education Loan

Processing Fee:

Prodigy Finance charges USD 500 to provide the sanction letter as the upfront payment; however, a 4% processing fee gets added to the loan amount.

However, Indian banks are convenient on this front. They charge around a 1-2% processing fee, but you need to pay the amount upfront, and no other charges are required. Some banks,;l like ICICI Bank,refund the processing fee after the first disbursement.

Interest Calculation Differences Between Prodigy Finance & Indian Banks

The interest rate provided by the Indian lenders can be fixed and floating; however, Prodigy Finance has a floating interest rate, which changes with the economy and market. 

Conclusion

Prodigy Finance offers a more student-centric, global, and modern approach to financing overseas education. With no collateral requirements, faster and simpler digital processes, international credit-building benefits, and transparent terms. But, as an education loan is a long-term plan, taking the help of experts is a better plan. GyanDhan is helping thousands of students with financing options. Just check your eligibility and get personalized help to pursue your higher education abroad. 

Frequently Asked Questions