With banks being the predominant financial lending institutions, many other lenders have emerged to close that gap over the years. For instance, Prodigy Finance is a fintech consumer credit platform. On the other hand, Leap Finance is a neo-bank. These NBFCs both issue education loans to student who want to pursue their studies abroad. Which is the better option, Prodigy Finance vs Leap Finance?
| Particular | Prodigy Finance | Leap Finance |
| Interest Rates | 11.5% – 13.5% | 11% – 12.25% |
| Maximum Loan Amount | Up to 100,000 USD | |
| Moratorium Period | Course period + 6 Months | |
| Repayment Terms | Up to 15 years | 7 – 10 years |
| Margin Money Charged | Nil | |
| Processing Fees | Up to 5% of the loan amount | Up to 3% of the loan amount |
Eligibility Criteria
Lenders that aren’t banks have a more complex way of qualifying applicants for their loan requests. This is because they partner with financers and each would want their terms to apply before giving funds to students. This is crucial when determining which NBFC is better: Prodigy Finance or Leap Finance.
| NBFC | Eligibility Criteria |
| Prodigy Finance | -Must be attending higher education in a country abroad -Must be pursuing a master’s programme -Must be residing in an eligible country -The university you’ll be studying must be in Prodigy’s listing |
| Leap Finance | -Must be a student aspiring to pursue master’s or postgraduate programmes -Must be applying for or already admitted for a STEM course at US universities -Must have a co-signer -Must be at least 18 years old |
Interest Rates
Interest rates are charged as income for the lender on the education loan. Interests are slightly higher for NBFC because of the nature of their operations. You can negotiate for better education loan interest rates with your lender. Low loan amounts attract higher interest rates, and higher loan amounts mean better interest rates.
| NBFC | Interest Rates |
| Prodigy Finance | 11.5% – 13.5% |
| Leap Finance | 11% – 12.25% |
You can also use the EMI calculator for education loans to determine the interest rates on your education loan.
Processing Fee
Processing fees help facilitate the loan to ensure that everything from start to finish runs well. They cover the minor aspects of the loan process and ensure that you get your loan disbursement as soon as possible. NBFCs charge higher processing than banks because of the complexity of their allocation procedure.
| NBFC | Processing Fees |
| Prodigy Finance | Up to 5% of the loan amount |
| Leap Finance | Up to 3% of the loan amount |
With a significant difference in processing fees, this is crucial when choosing between Prodigy Finance vs Leap Finance abroad education loans.
Maximum Loan Amount
The maximum loan amount is a consideration many applicants make before requesting a loan. This is because they want to determine whether or not the Leap Finance or Prodigy Finance education loan will cater to their studying abroad costs. Students must crosscheck their tuition fees and cost of living in the country to know how much they need and the loan amount to apply for.
| NBFC | Maximum Loan Amount |
| Prodigy Finance | Up to 100,000 USD |
| Leap Finance |
Moratorium Period
A grace period is allocated for all education loans. This period of moratorium allows students to finish their course, get enough time to seek employment and start earning to start paying off the instalments. However, if you get a job before or your co-signer can, you can begin making payments early before this period is over.
| NBFC | Moratorium Period |
| Prodigy Finance | Course period + 6 Months |
| Leap Finance |
Both Prodigy Finance and Leap Finance education loans have identical moratorium periods that are shorter than most lenders.
Margin Money Charged
Margin money is a downpayment made before the loan is disbursed. This is important to show the ability to pay and as the first funds to kickstart your academic journey. It only applies to lenders that give loans to cover your study expenses partially. However, Prodigy Finance and Leap Finance offer loans to cover 100% of the costs of studying abroad.
Repayment Terms
It is essential to factor in the repayment terms when choosing between Prodigy Finance or Leap Finance, which is better. The repayment of education loans needs proper planning and settling for an ideal repayment time will ensure you avoid defaulting. This should factor in the potential income after studies and monthly instalments you’d be willing to pay with that amount.
| NBFC | Repayment Terms |
| Prodigy Finance | Up to 15 years |
| Leap Finance | 7 – 10 years |
Types Of Collateral
Collateral is essential for secure loans. They establish whether or not you’ll get the loan. Security also influences the loan amount you’ll get from the lender. Prodigy Finance and Leap Finance are the same as they don’t require collaterals for their education loans.
Countries Each Bank Caters To
Both Prodigy Finance and Leap Finance services are available in several countries. Prodigy Finance gives education loans to students in approximately 150 countries. On the other hand, Leap Finance is available in the UK, the US, China, Australia, Canada, France, Germany, Russia, Italy, Japan, etc.
Which Of The Two Is UniCreds’ Partner?
Depending on where you are studying, UniCreds can help you source funds from both NBFCs.
FAQs
Which Bank Is Better Prodigy Finance Or Leap Finance?
Leap Finance has better conditions.
Which Bank Offers Better Interest Rates For Education Loans, Prodigy Finance Or Leap Finance?
Leap Finance offers better interest rates.
Can You Compare The Processing Fees For Education Loans At Prodigy Finance And Leap Finance?
Prodigy Finance has higher processing fees of 5% of the loan amount.
What Is The Maximum Loan Amount Offered By Prodigy Finance And Leap Finances For Education Purposes?
The maximum loan amount for both NBFCs is up to USD 100,000.
Are There Any Specific Eligibility Criteria That Differ Between Prodigy Finance And Leap Finance Education Loans?
The eligibility criteria for Prodigy Finance vs Leap Finance is almost the same.
How Do The Repayment Terms Vary Between Prodigy Finance And Leap Finance Education Loans?
The repayment time for Leap Finance is shorter, standing at 7 – 10 years.
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