International education is a dream for thousands of Indian students but the cost often becomes a roadblock.
Over the past few years, international lenders offering no‑collateral, no cosigner loans have become increasingly popular because they fill a gap that traditional banks can’t.
They lend based on future earnings potential rather than family assets or guarantors.
In this mix, two names keep coming up in student conversations: Prodigy Finance and MPOWER Financing. For Indian students looking to study abroad without collateral or a co-signer, they feel like the default comparison.
At the same time, the currency situation has gotten worse. In 2025, the rupee touched an all-time low of around ₹91 per USD, after averaging about ₹87 over the year.
Such a 5-6% rupee depreciation in a year can push study abroad budgets up by lakhs for the same USD cost.
As someone who works on the loan side at GradRight, I see more students asking a very specific question now. Which one is better? Which will cost me less? And is one more reliable than the other?
Let’s stay focused on that.
Prodigy vs MPower: Study Abroad Loan Comparison
Both Prodigy and MPower skip traditional credit scores. So, all you need to be eligible for a Prodigy or MPOWER loan is to be accepted into one of their supported universities or eligible programmes.
Students who plan to study abroad might also be eligible for loans, if are a graduate student within the last 24-30 months of a bachelor, master, or PhD program.
No minimum income or collateral is asked, but you must clear a KYC and visa-eligibility check. Also, both have a fully online application process, which you can complete in less than an hour.
Here is a snapshot of how the two global lenders approach education financing.
Prodigy Finance
Focus: Mostly postgraduate programmes (business, engineering, public policy, and STEM fields).
Interest Rate: Variable and fixed rates. Starts from lower rates for strong profiles but can fluctuate over time.
Founded: 2007, UK‑based fintech lender.
Prodigy’s variable model can be good if you expect significant income growth after graduation. But it also means your repayment could shift over time based on global benchmark interest rate movements.
MPOWER Financing
Focus: Both undergraduate and postgraduate students in the USA and Canada.
Interest Rate: Fixed. You know your monthly payment (EMI) throughout the loan term.
Founded: 2014, US‑based Public Benefit Corporation.
Extras: Scholarships, career services, and visa support bundled into the student experience.
MPOWER’s fixed rates are attractive if you want certainty and no surprises if markets spike.
Prodigy vs MPower: Accepted universities, countries, and eligibility
Prodigy Finance covers over 1,700 programmes across 18‑19 countries. It focused largely on master’s and specialised postgraduate programmes. To qualify for a loan, you generally need to be admitted to a participating university in one of the countries.
Here is a list of all countries currently supported by Prodigy Finance.
| Australia | Portugal |
| Belgium | Singapore |
| Canada | South Africa |
| China | Spain |
| Denmark | Switzerland |
| France | United Arab Emirates (UAE) |
| Germany | United Kingdom (UK) |
| Hong Kong | United States of America (USA) |
| Italy | Netherlands |
MPower Financing supports about 500 eligible universities as a full-time or half-time student on campus in the USA and Canada. Loans are available for undergraduate, graduate and Phd programmes.
The bottom line on geography. If you need funding outside North America, Prodigy is the only non-collateral choice between the two.
So, the question is: Which lender to choose when studying in the USA or Canada? Let’s compare Prodgy and MPower on interest rates and other loan terms.
Prodigy vs MPower interest rate comparison: Which is cheaper?
Prodigy Finance uses a variable rate model. Indicative APR for many students commonly ends up in the 11-15% APR range. This largely depends on your profile and program, because final pricing adds a margin on top of benchmark rates.
MPOWER Financing offers fixed rates as low as 9.99% (10.89% APR) (including a discount for automatic payments). Here, your final rates will also ultimately depend on your profile and payment setup.
While there is no clear answer for which loan is always cheaper, it comes down to your priorities:
- MPOWER’s fixed rates mean your USD repayment won’t change for the life of the loan.
- Prodigy’s variable rates mean your repayment amount could go up or down depending on market conditions and your profile evaluation.
Here is a summary of the cost comparison between Prodigy and MPower with interest rate, fees, maximum loan amount and more.
| Feature | Prodigy Finance | MPOWER Financing |
| Interest Type | Floating (SOFR + margin) | Fixed (predictable EMIs) |
| Indicative APR | Starts lower for strong profiles (11-15%) | 10.89%-15.99% + discounts |
| Fees | One-time processing fee of $500, 4% admin fee added to principal | Origination fee + possible autopay discount |
| Max Loan (indicative) | Up to US$220,000
(Covers 100% cost of attendance depending on profile and program) |
Up to $100,000 |
| Interest During Study | Moratorium possible with principal and interest later | Simple interest during study (interest‑only) options |
| Moratorium | Full in-school and 6-month grace with zero mandatory payments
(Full-time students: 6-month grace, Part-time students: 3-month grace) |
6-30 month grace |
| Repayment Period | Up to 20 years possible | Up to 10 years typical |
*These are broad ranges, not offers. Your actual APR can fall outside this band.
Prodigy vs MPower: Which is better for which Indian student profile?
So, which is the best student loan provider for international students? There is no clear winner between MPOWER and Prodigy for everyone.
Prodigy might be a good fit for you, if:
- You’re doing a master’s in US/UK/Europe/Australia at a top-tier school they support.
- You’re comfortable with variable rates and possiblle refinance later
- You want full cost of attendance coverage at some schools
MPOWER might be a good choice, if:
- You’re going to an eligible US/Canada school (especially undergrad / STEM / professional programmes)
- You value fixed EMIs
- You want a lender that also offers scholarships
You can get the most reliable comparison for your case, including APR in INR terms and personalised lender fit at a neutral marketplace like GradRight.
“I am immensely grateful for the support that GradRight and Prodigy Finance extended to help me realise my aspiration of studying at my dream university in the USA. Platforms like these bring hope in the lives of students who find the current financial system cumbersome.”
—- Rohit, Indian student funded via Prodigy Finance with guidance from GradRight.
Our loan search platform lets you view competing loan offers side by side. And make the best decision for your profile and goals.
Prodigy vs MPower: Final thoughts
MPower and Prodigy dominate the study abroad education loan landscape for many Indian students .
But traditional Indian loans from public banks and NBFCs still work well if you have:
- Solid collateral: A house or fixed deposits that comfortably cover the loan.
- A strong co-applicant: Stable income, clean credit, and willingness to sign.
The problem is, a lot of first-generation or middle-class applicants don’t check all those boxes. That gap is where international lenders have grown:
- No collateral / co-signer: Both Prodigy and MPOWER fund students purely on university, course and future earning potential.
- Visa friendly: Loans are disbursed in foreign currency directly to the university, which works cleanly for visa proof and I-20/CoE funding.
But that convenience comes at a cost, which is mainly higher APRs in USD and full exposure to INR depreciation.
