An article published in Businessweek reveals a new and unexpected source for loans for international students. A company called Prodigy Finance, located in London and established in 2007 by 3 INSEAD graduates, provides loans for international MBA students in Europe and soon in the U.S.
The global economic crisis led to the closing of many loan programs at the big banks in Europe and the U.S. Business schools began to search for other sources. U.S. schools had difficulty finding resources for international students that did not require an American guarantor.
Over the last four years, Prodigy Finance has raised over $25 million in funding for students at European business schools, with plans to raise $150 million by the end of this year, add more European schools to the program, and enter the American market by June.
Among the schools that currently work with the company are INSEAD, Oxford, and Cranfield. The loans are funded by alumni and the university, bear an average interest rate of 8.2%, and the repayment schedule stands at 7 years. The company grants loans based on its prediction of the student’s future potential for earnings, so in effect the loans are an investment for alumni who will gain the yield upon its future repayment.
Put Me in Business (applying in less than a year)
Put Me in Business (applying in more than a year)