Students gain access to funding their postgraduate degree that they often otherwise could not afford. Students need to be studying abroad (that is, outside their country of nationality or residence) to be eligible for a loan. The only exception is that UK students are eligible if they are studying in the UK, as Prodigy operates under UK law.
The funds are disbursed directly to the business …show more content…
Total amount payable: €50,681.10
Amount of each monthly repayment: €598.14
While this may be unusual in some regions it is a typical loan product that has a number of benefits for borrowers, the most important being that in an era of low base rates this means that borrowers can immediately gain from these low rates. In addition, transparency of the standard measurement such as Euribor, US and UK Libor rates are easily communicated.
The focus on the loan application at Prodigy is affordability and credit worthiness; there are a number of factors that are used in this assessment such as employment, salary, GMAT score and a few others. We also require a credit bureau report to check if there have been any significant payment or default issues in the past. Universities tend to focus on a larger scope for assessing a student candidate, ranging from GMAT score to industry experience to demographics.
A number of input factors are considered in the model, which develops future earning potential while overlayed with a credit policy to determine affordability. In order to manage the uncertainty (which is always an issue when developing models) we constantly update and refine the parameters and weightings, this is done by using real data and then measured against a host of statistical …show more content…
When applicants are declined they tend to fall into one of two categories: 1) overleveraged, meaning that they have too much debt already in place or 2) Affordability, which means that a significant budget shortfall has been identified. In a very small number of cases a credit report indicates a poor repayment history in which case we investigate further.
Our repayments are as good as they are because the right candidates attend the right business schools. Admissions Committees at the schools we work with do a noteworthy job of selecting candidates. Which is our first filter and part of the dynamic relationship we aim for. Their success in candidate selection assists with our success too.
We value communication and strive to work with each school, and their individual candidates, to find a way forward whilst adhering to our responsible lending criteria as agreed with our investment community. Communication and constructive feedback are two important elements for anyone to consider and incorporate when planning for the future– learning from your experience and being able to apply and share those learnings as you take the next