There are a number of NBFCs, financial platforms, and “neo-banks” that offer education loans to study abroad at reasonable rates. Of these, Prodigy Finance and Leap Finance have a reputation for being solid lenders who offer clear terms and conditions and affordable loans.
However, the two financing platforms have very different lending philosophies. In this post, I will compare Prodigy Finance vs Leap Finance education loans. I will look at every aspect of education loans offered by these two NBFCs and bring out the difference.
Overview of Prodigy Finance and Leap Finance
Prodigy Finance is a UK-based lender (NBFC) that offers loans to students worldwide. They focus on loans for graduate and post-graduate study abroad and structure their loans to focus on the future earning potential of the borrower rather than the current financial situation.
Leap Finance, on the other hand, is an Indian fintech lender focused on Indian students. Founded in 2019, they have positioned themselves primarily as a lender for students who want to study in North America.
Prodigy Finance vs Leap Finance: Interest Rates
Both offer very affordable interest rates. Let’s look at the details.
Note that interest rates can change, and we request that you consult the official site for the latest changes.
Prodigy Finance
Prodigy Finance offers variable interest rates linked to international benchmarks like the 30-Day Average SOFR.
- For Indian students without a co-signer, rates in 2025 typically start from around 10.08% APR.
- For Indian students who can add a consignor, Prodigy Finance offers loans starting from 9.09% interest.
The interest rate can move upward depending on the applicant’s profile, university, program, and other factors.
Leap Finance
- Unlike other banks and NBFCs, Leap Finance does not specify interest rates based on co-signers. They judge the profile and offer a custom interest rate to every borrower.
- Currently, it is in the range of 8.45% to 11.95% for USD loans.
Prodigy Finance vs Leap Finance: Processing Fees
Banks and NBFCs charge a processing fee or an administrative fee. It is critical because the processing fee adds to the total cost of the loan.
Prodigy Finance
Prodigy Finance charges processing fees in two tranches.
- There is a $500 upfront cost for loan processing, sanction, and disbursal.
- Additionally, there is an administrative fee of approximately 4–5% of the loan amount. This is added to the principal and repaid over the lifetime of the loan.
Essentially, if you opt for a $30,000 loan from Prodigy Finance, you must pay a $500 fee upfront and repay a principal amount of $31,500 over the loan’s tenure.
Leap Finance
- Leap Finance charges a processing fee of around 4% payable at the time of application.
- In addition, there is a $500 sanction letter fee.
Unlike Prodigy Finance, both are payable at the time of application and sanction.
Prodigy Finance vs Leap Finance: Loan Tenure
Loan tenure is of utmost importance since it affects your monthly budget, EMI, and total cost of the loan. Repayment flexibility is where Prodigy Finance stands out.
Prodigy Finance
Prodigy Finance offers tenure between 7 and 20 years. A long tenure might make the loan costlier due to more interest paid, but it reduces the burden of EMI.
Leap Finance
Leap Finance typically offers repayment tenures between 7 and 10 years. A short tenure works best for those who want to repay their liabilities well before they reach their mid-thirties.
Prodigy Finance vs Leap Finance: Moratorium Period After Graduation
Moratorium period after graduation is a temporary holiday from repaying the education loan. You need time to search for a job and settle down before you are in a position to repay the loan.
- Prodigy Finance offers a grace period of 6 months after graduation for full-time students.
- Leap Finance follows a similar timetable and also offers a 6-month moratorium.
This is in line with industry standards.
Prodigy Finance vs Leap Finance: Margin Money
Public and private sector banks in India require margin money. They want you to have skin in the game, that is, making a personal investment. It can be as high as 15%. For a ₹50 lakh loan, this means your family has to invest ₹7.5 lakhs immediately. Needless to say, many cannot afford this amount.
Both Prodigy Finance and Leap Finance eliminate this requirement. You do not have to pay a rupee.
Prodigy Finance vs Leap Finance: Collateral and Co-signer Requirements
Collateral is security that a lender keeps for the duration of the loan. Usual collaterals in India include – bank FD, house property, and investments. This is where Prodigy Finance and Leap Finance make it easier.
- Prodigy Finance loans do not require collateral or a co-signer. However, co-signer options can be availed for reduced interest rates.
- Leap Finance provides unsecured education loans to study abroad for Indian students. No collateral is required. They prefer a cosigner, usually parents, siblings, and close family members.
Prodigy Finance vs Leap Finance: Loan Amount Limits
Prodigy Finance’s maximum loan amount covers up to 100% of your total cost of attendance. Sources indicate specific limits often cited around $220,000.
Leap Finance offers a maximum loan amount up to 100% of the total cost of attendance. In absolute terms, sources specify a maximum limit of $100,000.
Prodigy Finance vs Leap Finance: Eligible Countries
Prodigy Finance currently supports postgraduate students across 19 countries. This includes traditional destinations such as:
- Canada
- United States
- United Kingdom
- Australia
- Germany
They also offer loans for New Zealand, France, the Netherlands, Italy, and Switzerland.
Leap Finance primarily serves Indian students looking to study in the United States and Canada. They are expanding their network to cover the UK, Canada, Australia, Germany, and other nations.
Prodigy Finance vs Leap Finance Comparison Table
Here is a simple comparison table for Prodigy Finance vs Leap Finance education loans terms and conditions.
| Feature | Prodigy Finance | Leap Finance |
| Interest Rates | Variable APR. Starts around 10% (no co-signer). | Typically 8.45% to 11.95% |
| Rate Structure | Fixed margin + variable base rate linked to SOFR benchmark. | More predictable structure. Easier for students to estimate future EMIs. |
| Processing Fees | $500 processing fee + 4–5% admin fee added to loan principal | 4% processing fee payable at fund request + $500 sanction fee. |
| Repayment Tenure | 7 to 20 years. | 7–10 years. |
| Moratorium Period | 6 months | 6 months |
| Margin Money | 0% | 0% margin |
| Collateral Requirement | No collateral required. | No collateral required. |
| Co-signer Requirement | Optional. | Mandatory co-signer for all loans. |
| Loan Amount Range | USD 220,000 (or 100% of the cost of attendance). | USD 100,000 (or tuition cap). |
| Eligible Countries | USA, UK, Canada, Germany, France, Netherlands, Australia, and more. | USA, Canada focused |
| Loan Currency | USD and INR options available. | Primarily USD loans |
| Best Suited For | Students without co-signers, high-cost programs
Europe/Australia focus Those needing lower monthly EMIs. |
Students with strong co-signers
USA/Canada focus |
Comparing Prodigy and Leap is just one step.
I’ve seen that most students discover they need to weigh offers from multiple lenders, with different rates, eligibility rules, and paperwork.
At GradRight, we help you line up all your options side by side, compare actual EMIs, and even access exclusive lender deals, so you can pick the loan that truly fits your goals and budget.
To stay updated about various education loan platforms and secure the most affordable loans, reach out to us at GradRight.
Countless students have already seen the benefit of using GradRight to find the best education loan offers.
For instance, Vamsi wanted to pursue his studies in the United States. GradRight helped him secure an educational loan from Prodigy Finance to study an MS in Computer Science, Arizona State University.
Prodigy Finance vs Leap Finance: Which Is Better for Indian Students in 2026?
This is indeed a difficult question to answer.
Students without co-signers will find Prodigy Finance to be the more practical option. This is especially true if they are going to Europe or Australia for study. It is also better suited for high-cost programs such as MBAs due to a $220,000 limit.
Students with strong co-signers generally find Leap Finance easier to work with. It not only has a US focus, but its website mentions that it helps build a credit report abroad. This implies they report loan activity to FICO, which helps students when they transition to an H1-B visa.
