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MPOWER Financing and Prodigy Finance: Which is Better for Education Loans?

MPOWER Financing and Prodigy Finance: Which is Better for Education Loans?

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Read GyanDhan’s comparative guide on MPOWER Financing vs Prodigy Finance abroad education loan to choose the right option for you. Compare the interest rates, loan amount, repayment terms & more.

GyanDhan
Arshi Khan
Updated on:  04 Apr 2025 | 9.07K | 14  min read

If you are a study abroad aspirant, during your quest for education loans to support your study abroad plans, you may have come across the term "international lenders" who offer loans without requiring collateral or co-applicants. To simplify your research process and aid in your decision-making, we present a comparison of two prominent international lenders operating in the Indian market: MPOWER Financing and Prodigy Finance.

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Comparative Overview of Education Loans by MPOWER Financing vs Prodigy

MPOWER Financing and Prodigy Finance are major players in the international education loan sector. They provide loans in foreign currency, remove exchange rate costs, and don't demand collateral or co-applicants, focusing on future earning potential. Direct disbursement to universities is also offered. Both lenders have similarities in loan amounts and origination fees, but it's crucial to assess differences in interest rates, eligibility, and other factors to make an informed choice.

 

Let's see the general differences between these lenders:

Basis of difference MPOWER Financing Prodigy Finance

Interest rates*

Starts at 9.99% (10.89% to 17.08% APR)

Interest rate: 12% - 14%

Interest rate type

Fixed

Floating

Interest rate discounts

0.25% (on autopay**)

No discount

Target country (to which you want to go)

USA and Canada

Majorly USA and Canada, but also have some universities from UK, Australia, Ireland, and 14 more countries.

Number of schools supported

500+

1100+

Repayment 

Full simple interest during the study period + 6 months

Full free moratorium during study period + 6 months;

EMI will start after 6 months of the course

Loan tenure

Up to 10 years

Up to 20 years

Programs supported

Bachelors and Masters 

Only Masters

Eligibility 

Provides loan for a maximum of 2 years of courses only and for the last 2 years of bachelor's degree.

Provides loan for masters STEM courses only

Additional services

Loan top-up*** (Avanse and Incred), Path2Success Program (career guidance),

conditional offer letter, and scholarships

Only loan top-up (Avanse and Incred) 

Loan Approval Basis: GRE / GMAT? 

No

No

*Interest rate as of January 2025

**Autopay: The amount of SI and EMI is deducted automatically from the designated bank accounts

***Top-up: To borrow more on an existing loan

 

Now that you have an overview of the differentiating points between these lenders, let’s discuss these aspects in more detail.

 

Check loan eligibility for study abroad

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Difference in the Interest Rate of MPOWER Financing vs Prodigy

The interest rate can be defined as the cost of borrowing, expressed as a percentage, while APR (Annual Percentage Rate) includes additional fees, giving a comprehensive view of the total loan cost. Comparing interest rates and APRs is important for evaluating loan offers accurately and identifying potential savings.

 

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    MPOWER Financing offers fixed interest rates for their loans, ensuring that the rate remains constant throughout the loan tenure. 
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    The interest rate for MPOWER Financing starts from 9.99% (10.89% to 17.08% APR). The rates can be discounted by 0.25% if you sign up for autopay, so that the due amount for your loan will be deducted from the designated account automatically
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    Many students view MPOWER's APR as high due to factors like low credit scores and university choice, leading to a preference for INR loans. However, comparing INR and USD loans requires considering increases in initial rates, forex charges (2%-6%), insurance (1%-8%), and processing fees (0.5%-2%), potentially pushing INR loan APRs beyond 16%.
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    In contrast, Prodigy Finance employs a variable interest rate structure, meaning the rate can fluctuate during the loan tenure. Prodigy Finance's interest rates can range between 12% - 14%, and there are no interest rate incentives offered by Prodigy Finance.
 

This leads you to two situations, that is in case you want to plan ahead your budget and then pay the EMI then MPOWER Financing is a good choice because they have a fixed interest rate but in case you want to take benefit of a reduced interest rate then Prodigy Finance will be a good choice as they have a floating interest rate thus it may go down and benefit you.

Tough choice to make? Watch our comparative video on the top international lenders to get a loan

 

 

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Acceptable Universities and Countries in MPOWER Financing vs Prodigy

International lenders like MPOWER Financing and Prodigy Finance have approved lists of countries, universities/colleges, and programs for their loans. Checking if your desired options are supported by the lender is crucial for eligibility and accessing financing options.

 

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    MPOWER Financing focuses on providing loans for studying in the USA and Canada only while Prodigy Finance offers loans for 19 different countries, including the USA, Canada, UK, Australia, Germany, Ireland, and more. Although the major focus of Prodigy is also on the USA and Canada, there are few schools in other countries that are eligible. Prodigy Finance's broader country coverage gives it an advantage in terms of international options.  
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    Moreover, MPOWER Financing supports more than 500 universities/colleges, while Prodigy Finance has a larger network, covering over 1,100 institutions. This wider range of supported institutions provides students with more choices and flexibility in selecting their preferred educational establishments. 
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Difference in Loan Tenure and Repayment Between MPOWER and Prodigy

When comparing education loans for studying abroad, consider the loan tenure and repayment terms. MPOWER Financing and Prodigy Finance differ in these aspects, so it's important to compare their offerings.

 

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    MPOWER Financing offers a loan tenure of up to 10 years. During the study period and the subsequent 6-month grace period, the borrower is required to make payments in the form of simple interest only.  
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    On the other hand, Prodigy Finance has an advantage in terms of loan tenure. They can provide loans with a tenure of up to 20 years. Additionally, applicants may have the option of a full moratorium period, during which they are not required to make any payments, both during the study period and the 6-month grace period.
 
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Eligible Programs to Get MPOWER Financing vs Prodigy Education Loan

MPOWER Financing provides loans for up to two years for master’s programs and covers only the final two years of a bachelor’s degree. In contrast, Prodigy Finance focuses solely on providing loans for master's programs. Furthermore, Prodigy Finance places emphasis on STEM (Science, Technology, Engineering, and Mathematics) courses only, while with MPOWER, there are multiple courses that you can pursue.

 

If you are pursuing a bachelor's degree and require funding for the final two years, MPOWER Financing may be a suitable option. Conversely, if you are planning to pursue a master's degree, particularly in a STEM field, Prodigy Finance might be the more appropriate choice. 

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Additional Services by MPOWER Financing vs Prodigy 

MPOWER Financing offers several additional services that are not available with Prodigy Finance. Both have a common service, which is loan top-up (to borrow more on an existing loan), but apart from it, MPOWER Financing provides a few additional services. These value-added services provided by MPOWER can enhance the overall student experience and support their career development. A few of these services are -

 

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    Path2Success Program: Provides resume feedback and interview preparation sessions to support career development.
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    Conditional offers: Facilitates the visa application process by expediting visa processing with a conditional offer.
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    Provides visa support services and assistance with bank accounts.
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MPOWER Financing vs Prodigy: Which is Better for you?

MPOWER Financing and Prodigy Finance are viable options for education loans without collateral or a co-applicant. MPOWER focuses on the USA and Canada, while Prodigy while Prodigy's main focus is also on these two countries but they also offer loan options for students from different countries. When choosing between them, consider factors like interest rates, eligible programs, and countries. Both lend in foreign currency (USD) but be cautious of exchange rate fluctuations impacting repayment costs. Opting for a loan in INR can offer long-term cost savings, regardless of future work location.

 

You can read more about USD vs INR loans at GyanDhan’s discussion forum where study abroad aspirants have shared their personal experiences. Prodigy Finance will also charge a prepaid fee of 100 USD, which was 50 USD earlier once the loan has been approved. Only after the student pays this fee, a sanction letter will be issued. If an applicant decides to withdraw and submit a new application for a different school, they will need to pay the prepaid fees again for the new application. The fee already paid for the previous application will be directly refunded to the student.

 

The offerings from both of them are quite similar, yet it can make a difference if you end up choosing a lender that does not align well with your requirements. Suppose your university is eligible for both lenders; consider your repayment preferences before choosing.

 

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    Choose MPOWER Financing if you prefer a fixed interest rate and are comfortable paying simple interest during your course and moratorium period, with a shorter repayment tenure.
     
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    Choose Prodigy Finance if you can manage a floating interest rate and want a longer loan tenure of up to 20 years with a full free moratorium period.
 

 It can be difficult to correctly evaluate the lenders and align them with your requirements. More than being difficult, it is a time-consuming process and you are at this stage where you have to focus on other things like your visa. Do not worry, let GyanDhan help you, we have enough industry experience to help you choose the best lender that aligns with your requirements. All you have to do is check your eligibility with GyanDhan and sit back to experience a streamlined and hassle-free process for securing your education loan abroad.

 

Read also:

 

 

Scholarships

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Frequently Asked Questions

What is the typical loan repayment period offered by MPOWER and Prodigy?
 

Loan repayment can be defined as the time that has been provided to you to repay the loan back to the lender. For MPOWER Financing it can be around 10 years, but in the case of Prodigy Finance, it can range between 15 - 20 years. 

Are there any additional fees or hidden charges associated with MPOWER Financing?
 

There are no hidden charges but there is a cost that is called origination fees in case of MPOWER Financing that you should be aware of. You can consider it as a processing fee that is taken by Indian lenders. This origination fee is 5% of the disbursed amount, and it is adjusted in the loan amount. Moreover, you do not have to pay it upfront. You will be charged this origination fee on every disbursement you take from the sanctioned amount.

Are there any additional fees or hidden charges associated with Prodigy Finance?
 

There are no hidden charges in the case of Prodigy Finance but there is a 5% admin fee that is included in the approved loan amount and spread across your loan tenure to be paid back with EMIs. 

Which lender, MPOWER or Prodigy provides a better interest rate for abroad education loans?
 

For both lenders, the interest rate is relatably similar, but the main differentiating factor between these lenders is the nature of the interest rate. MPOWER Financing has a fixed interest rate while Prodigy Finance has a floating interest rate. Depending on your requirements and risk-taking ability, you can choose the lender.

Does Prodigy Finance provide abroad education loans for Bachelor's programs as well?
 

No, Prodigy  Finance’s main focus is providing abroad education loans for majorly Master’s STEM programs and a few Non-STEM programs as well. 

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