Great news for international students from Africa and Asia looking for a way to pay for business school, Prodigy Finance has raised £100 million from Credit Suisse, Balderton Capital, and angel investors such as Ed Wray. The company has processed $130 million in loans since 2007, with offices in London and Cape Town and repayment rates over 99%.
The average salary for an MBA graduate from Harvard Business School is $180,000 three years after graduation, according to FT rankings data. But overseas students often struggle to persuade banks to lend them the money to pay the six-figure course fees because they lack a US credit record. Three quarters of Prodigy’s borrowers come from developing world countries, including about a third from Brazil, Russia, India and China, many of whom find jobs in their home countries after graduation, making them extremely low risk, according to Mr Stevens. “We don’t care if you move from Shanghai, Dubai or New York because it is a global market,” he said. “In the past, someone coming from China to study in London would have to stay in the UK to find work. Now they can return to work for Google in Shanghai.”