For Indian students planning to study abroad, finding the right education loan is crucial. With options like MPOWER Financing and Prodigy Finance, students are presented with choices that come without the need for collateral or a co-signer. But which one should you choose?
Both lenders target students seeking education loans for studying in foreign countries, but they come with distinct features, including differences in interest rates, loan eligibility, countries supported, and application processes.
In this article, we will compare MPOWER vs Prodigy Finance education loans in a detailed, insightful manner so that you can make a more informed decision.
A Quick Comparison: MPOWER and Prodigy Finance loans
Before getting into specific comparisons, let's briefly understand the key features that distinguish MPOWER Financing and Prodigy Finance.
Get an Education Loan 10X Faster than Banks.
Now, let's get into each of the aspects and see how the two lenders differ.
Understanding Interest Rates: Fixed vs Variable
Interest rates MPOWER vs Prodigy Finance, are critical when selecting an education loan. The right choice can significantly impact your monthly payments and the overall cost of the loan.
MPOWER Financing offers fixed interest rates, ensuring that your monthly payments remain stable throughout the entire loan term.
1. This is an attractive option for students who prefer predictable payments and want to avoid surprises during repayment.
2. MPOWER's interest rate starts at 12.99%, with a 0.25% discount for enrolling in autopay.
3. This makes it a bit more affordable for students who consistently manage their payments.
On the other hand, Prodigy Finance offers variable interest rates.
1. This means they can fluctuate with the market, potentially lowering your rates when the economy is in your favour.
2. However, this also means that your monthly payments could increase if the market rates rise.
3. Prodigy's starting interest rate is lower - i.e., 8.34% - but it comes with the uncertainty of how the rate might change over the loan tenure.
Loan Eligibility MPOWER vs Prodigy: Who Qualifies?
If you meet the lender's specific criteria, your loan application process will be much smoother.
MPOWER Financing is flexible and offers loans to both undergraduate and graduate students. The eligibility criteria are simple:
1. Students need to be enrolled in an MPOWER-eligible program at a recognised school in Canada or the USA.
2. A GPA of 2.5 or higher is also required for those who have completed one semester of their current program.
However, Prodigy Finance targets graduate students specifically.
1. It focuses on those pursuing master's, particularly in STEM, business, law, and public policy.
2. Additionally, Prodigy supports students only at universities in countries like the USA, Canada, the UK, Australia, and several European nations.
Countries Supported: Where Can You Use Your Loan?
When considering study abroad loans, it’s important to check which countries and universities each lender supports. While both MPOWER and Prodigy Finance offer great loan options, their geographic focus differs.
- MPOWER Financing has a more limited geographical coverage. It supports loans for students planning to study in the US and Canada, making it an excellent choice for those pursuing education in North America.
- In contrast, Prodigy Finance offers a broader range of options, supporting education loans for students studying in 19 countries, including the USA, Canada, the UK, Australia, Germany, France, and others.
This gives students more flexibility in choosing a study destination that aligns with their academic and career goals.
Application process MPOWER vs Prodigy Finance
The application process can make or break your experience with a lender. Understanding the steps and the documents required will help streamline your experience.
MPOWER Financing offers a simple online process, which is easy to complete.
1. Students simply need to fill out their basic details, upload relevant documents (like proof of admission, identification), and receive an offer after eligibility verification.
2. This ease of application is one of the reasons why many students prefer MPOWER Financing.
On the other hand, Prodigy Finance requires a more detailed application process.
1. You can receive a pre-approved loan offer before getting your acceptance letter from a university.
2. However, the full application process involves submitting more documents and confirming your acceptance into a supported university.
3. Prodigy Finance also requires you to pay a processing fee before issuing the final loan offer.
Minimal Docs, Maximum Approval - Apply Now.
Loan Repayment Flexibility: How Much Time Do You Have?
How long you have to repay your loan and whether you have a moratorium period can have a significant impact on your financial planning.
1. MPOWER Financing offers a shorter loan tenure of up to 10 years, with simple interest payments during the study period. So while you won't have to pay the principal amount during your study period, the interest will accumulate and be added to your loan amount.
2. Prodigy Finance offers a much longer loan tenure of up to 20 years. Additionally, they offer a full moratorium period. You won't have to make any repayments during your study period or the 6-month grace period after you complete your course.
Repayment Terms and Additional Services: What's Included?
When it comes to repayment and additional services, the two lenders offer distinct benefits.
MPOWER Financing:
1. Offers a Path2Success program, which provides career guidance, resume feedback, and interview preparation, ideal for students looking to enhance their post-graduation prospects.
2. Additionally, MPOWER offers conditional visa support and scholarship options to help ease the financial burden.
Prodigy Finance:
1. Does not offer career-oriented services, but it does provide loan top-ups to students looking for additional funding during their education.
2. Prodigy's repayment structure also includes the benefit of having no payments required during the study period, allowing you to focus solely on your studies.
Planning to study overseas but worried about finances? Don't miss our detailed guide on how to get an education loan for abroad studies.
MPOWER vs Prodigy Finance Loan For MBA: What Students Are Asking?
When deciding between MPOWER Financing and Prodigy Finance for your study abroad loan, it's important to consider not only the loan terms but also how each lender fits into your financial plans. A Reddit user in r/MBA shared their experience:
"I received an early admission this year from Owen with a $100,000 scholarship. I need about $90,000 to cover the remaining tuition and expenses. I’m looking at two financing options: MPOWER and Prodigy. MPOWER says monthly interest payments start while I'm in school, but Prodigy says payments start 6 months after classes end. Does this mean I won’t need to make any payments during my 2-year MBA program if I go with Prodigy?"
Insight: The user is highlighting the key difference in the repayment schedule. MPOWER requires students to pay interest only during their studies. On the other hand, Prodigy Finance offers a full moratorium.
Additionally, the query asks about the loan amount - Prodigy mentions a maximum loan amount of USD 77,100, but this is per loan cycle (i.e., per academic year or loan term). This should be clarified with Prodigy to understand if this is for a 2-year MBA program or a single loan cycle.
What can we infer from this?
1. Prodigy Finance offers greater flexibility, with no payments during your study period and a longer moratorium, which is especially beneficial for students who want to focus on their studies without worrying about monthly payments.
2. MPOWER may be better if you prefer to start paying interest while in school and want the certainty of fixed monthly payments beginning earlier.
Tip: Before making a decision, ensure you fully understand the loan repayment terms, particularly how much you'll be paying each month and when. Reach out to both lenders to get clear answers, especially if you have a multi-year program like an MBA.
Choosing Between MPOWER Financing and Prodigy Finance
Choosing between MPOWER Financing and Prodigy Finance boils down to your personal preferences, study destination, and loan repayment flexibility.
Here's what to choose:
1. MPOWER Financing is perfect if you are aiming to study in Canada or the USA, with fixed interest rates and shorter loan terms.
Additionally, the Path2Success program and career support can be valuable for students seeking more holistic support during their studies.
2. Prodigy Finance offers more global coverage, especially for students looking to study in Europe, Australia, or other international destinations.
The longer repayment tenure and no payments during the study period are ideal for students seeking financial flexibility.
Ultimately, your choice between MPOWER vs Prodigy Finance abroad education loan will depend on your academic and financial goals. By considering all the factors, you'll be better equipped to make a choice that aligns with your study abroad aspirations and economic strategy.
Break financial barriers and make your best education loan a reality with Propelld. With flexible, collateral-free loans, quick digital approval, and personalised repayment options, you can secure funds for tuition, living expenses, and more without the stress. Propelld's 100% online process ensures you get your loan fast and hassle-free, so you can focus on preparing for your international education journey.
Take the first step towards your future—Apply with Propelld today!
.svg)
