As you may have noticed the Peer to Peer lending industry is exploding. (Need proof? Read this, this, and this.) And now that these niche markets have emerged you have the opportunity to invest in just about any type of person you can imagine.
If investing in future business leaders gets your heart a racing I’ve got good news for you: Prodigy Finance is going to help make that happen.
Here’s the lowdown.
What is Prodigy Finance?
Prodigy finance was founded in 2007 by three MBA graduates who discovered first hand just how hard it was to get financing for an international MBA.
They set out to solve this problem by finding investors to help ambitious business school students.
They’ve now given out more than $50 million dollars’ worth of loans and have had an outstanding repayment performance.
In short, Prodigy Finance helps international business students get the funding that they can’t obtain through traditional banks.
Ready to Invest? Read this first…..
Prodigy Finance works a little differently than the other P2P companies we’ve reviewed. Instead of investing in your pick of individual borrowers, you’re investing in a bond.
Here’s how it works: You buy a bond and your investment will fund a pool of students at one class at the university or business school chosen by you. Investment terms are university specific and you can earn up to a 6% return.
After making your investment you’ll receive semi-annual coupon payments on both principal and interest. Your principal will be given back to you through the duration of the loan rather than in bulk at maturity.
Also, note that these bonds are tradable on the Irish Stock Exchange. You can learn more about investing with Prodigy Finance here.
What About Getting a Loan?
We’ve previously covered that Prodigy Finances gives loans to students needing funding for an international MBA.
Just like the investing returns are school specific so are the borrowers rates. While Prodigy claims to have competitive rates they will vary from school to school and person to person.
Here are some of the highlights for borrowers:
- Preliminary decision within 48 hours of filling out an online application
- Offered to 150 nationalities
- No need for guarantees, co-signers, or collateral
- Repayment doesn’t begin until six months after graduation for full time students
If you’re interested in learning more about becoming a borrower or filling out an online application, you can do so here.
While you’re not going to get rich investing with Prodigy Finance they do have a 99% repayment rate, making this investment appealing to the risk averse. So if you’re looking to help out future business leaders, investing in international MBA’s could be a nice addition to your portfolio.
If you’re a student unable to find financing for your international MBA, Prodigy Finance could be your solution.
What do you think? Would these bonds make a good investment?