Nearly 79% of Prodigy Finance Students Come From Tier 2 and Tier 3 Cities

Student lender says similar patterns are visible in Brazil and Africa, while its data shows 74% of graduates at least double their salary after completing a master’s degree abroad

Students from smaller cities, farming families and first generation households are contributing significantly to international education demand, according to data shared by Prodigy Finance.
The international student lender said nearly 79% of the students it serves in India come from Tier 2 and Tier 3 cities. According to the company, a similar pattern can also be seen among students from Brazil and across Africa, where many borrowers come from modest financial backgrounds.
The findings offer a different perspective on the profile of students pursuing international education, particularly those who depend on external financing to fund postgraduate studies.

Sonal Kapoor, Global Chief Business Officer at Prodigy Finance, said, “If you look at our data itself, you will find that students from Tier 2 and Tier 3 cities make up nearly 79% of the students we serve. But, this trend is not unique to India. We see the exact same pattern in Brazil and across the Africa region. Most of these students come from a very humble background.”
For students from farming households, access to conventional education financing can present additional challenges.
Prodigy Finance cited the experience of an Indian student whose father was a farmer. According to the account shared by the company, agricultural land was the family’s only asset and could not be offered as collateral for a conventional loan. The family also faced difficulty producing the income documentation required by traditional lenders because agricultural income is tax exempt.

The student was eventually able to pursue a master’s degree through financing based on factors beyond the family’s existing assets.
Prodigy Finance also shared the experience of a first generation student from a small town in southern Brazil who pursued an international degree and later worked in investment banking in New York before becoming Chief of Staff at a major food retail company.
The financial gap becomes particularly significant when household income is compared with the cost of international postgraduate education.
According to the ICRIER figure cited by Prodigy Finance, an average farming household in India earns approximately ₹19,696 per month, with many households earning below this amount.

For families operating at such income levels, financing an international master’s programme without external support can present a substantial financial challenge.
Students from lower income households can also be more exposed to changes affecting international education, including visa restrictions and currency fluctuations, because their families may have fewer financial resources available to absorb unexpected costs.
Prodigy Finance said its graduate data indicates that international postgraduate education can lead to substantial changes in earnings for many borrowers.
According to the company, 74% of graduates it tracks at least double their salaries following their master’s degree. Among students from low income countries, the proportion rises to nearly 80%, while more than half quadruple their salaries.
The company also reported that 90% of these students said they had no other financing option.

Sonal Kapoor said, “Prodigy Finance was built for this. Studying abroad is not just about wealthy students chasing prestige. It is also about a farmer who spent years of savings hoping to make his son an engineer. That dream is exactly what we exist to help.”
The data indicates that international education financing is serving students whose ability to pursue postgraduate education overseas may not necessarily be supported by conventional measures such as family assets, existing income or traditional credit history.
For students from smaller cities and first generation households, access to education finance can therefore become a determining factor in whether an international postgraduate opportunity is financially possible.

ABOUT PRODIGY FINANCE
Prodigy Finance is an international student lender founded in 2007.
According to the company, it has supported more than 47,000 international master’s students attending universities worldwide and has disbursed more than US$2.6 billion in funding to students from over 150 countries.
Its lending model assesses applicants based on factors including future earning potential rather than relying only on their current financial circumstances and credit history.
Prodigy Finance is funded by impact investors and other privately qualified entities.
Prodigy Finance Ltd is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Loan offers remain subject to eligibility, funding and credit assessment criteria.

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