Managing your loan

2016

Thank you for choosing Prodigy Finance to help fund your dreams!

This information should help you with answers to some of the most frequently asked questions about loan servicing so you can focus on pursuing those dreams after graduation.

Updates fromProdigy Finance

Prodigy Finance is the pioneer in community-based student finance

Operations in Cape Town (2010)

Headquartered in London (2007)

Business Development Hub in New York (2014)| |

80

115

150

99.2%$150m

nationalities funded since programme launch (2008)

performing loans since repayments started in 2009

funding from two global banks

countries legally covered through unique international enforceability model

full time employees

3 offices (London, Cape Town & New York)

Prodigy Financeat a glance

Prodigy Finance supports more than 60 universities, with borrowers from over 100 countries, and we help students achieve their dreams.

82% of our borrowers say they had no alternative funding options.

75% of our borrowers come from emerging markets, with 66% returning home within 5 years of graduation.

of our student borrowers come from BRIC countries.

33% of our borrowers send remittances to their home countries.

34%

We have a Global impact

Map of our student borrowers’ top 20 countries of origin

INVESTORS

Support students at their alma mater or other top schools

& earn c. 5% p.a.

SCHOOLS

Obtain the best students &

improve diversity

STUDENTS

Get funding for their postgraduate degree

& connect to an alumni and HNW

community

The virtuous cycle

Servicing your Loan

What information is available to me?

Points on where I can get information… …1. Monthly statements – every month before the 15th until the loan is settled.

Contains a summary of the loan history and details on the next payment due.

2. Annual Statements – every 12 months after the first loan disbursement. Contains a summary of the previous 12 months’ transactions.

3. Loan agreement – all the relevant dates and servicing terms are contained in this agreement. You already have a copy.

4. Prodigy online FAQ – we continuously update this information source to ensure the information is accurate and relevant. Best try and find your answer here first.

5. Our collections team – Always ready to assist you with answers to your questions or general assistance and advice. Can also provide you with copies of misplaced documents.

Statements will arrive in PDF format via e-mail. If you don’t receive yours, it could be that we have the wrong e-mail address. Please make contact with payments team.

The first payment for this graduating class will be:

October 2016

Monthly Statements

Transaction history last 12 Months

Your repayment

details

Please use your Prodigy loan ID as payment reference for identification

Servicing your Loan

What should I know about making payments?

Points on making payment…1. Prodigy is registered as a lender in the UK and subject to the regulations and rules of

the FCA and CSA.

2. It is your responsibility to ensure your payment reaches our UK bank accounts –several options are available.

3. Your payment should be received in the currency of your loan. It is your responsibility to convert your currency to loan currency when making payment. Some of our payment partners will do this for you, but if you use your own provider, shop around to find the best rates.

4. Allow for currency fluctuations and transfer costs when you make your payment. A good idea is to always pay a little extra so you can be assured we receive the due payment. Again, if paying from your bank directly, discuss options to find the cheapest routes.

5. Payment should be made every month from when your repayment period starts. We can make exceptions in special circumstance, but please contact our payments team to discuss your situation.

6. Payments are due on the 28th of the month and payments made after this are subject to late fees. Payments can take up to 10 working days to clear depending how and where you are paying from, but as long as the payment is initiated before the 28th we’ll accept it as on time.

7. It is your responsibility to keep your contact information updated. If anything changes –telephone number, e-mail, address – please let us know as soon as possible.

The first payment for this graduating class will be:

October 2016

Servicing your Loan

What channels are available to make payments?

Points on payment channels…You make use of the following payment channels when making your payment:

1. Direct bank transfer into the bank account as indicated on the back of your statement. Please ensure that you first convert your funds into your loan currency before making the transfer if you do a direct bank transfer.

2. Recurring bank debit that you can set up directly as a standing instruction to your own bank to execute the monthly payment for a fixed amount. We suggest adding 5% to the initial monthly due amount as the fixed instruction, but continue to monitor the due value on your statement.

3. Any international payment facilitator that can transfer funds to the UK. We have a standing arrangement with Worldpay, but other channels like Transferwise and Earthbound can also be used.

4. Flywire previously known as Peertransfer, if this option is shown on your monthly statement. Using Flywire gets you access to very competitive rates for both fund transfer and currency conversion and depending on the country from which you are paying from you can:

• Make payment in your own local currency, and• Make payment via credit card or debit card, and• Initiate a bank to bank transfer at preferential rates

The first payment for this graduating class will be:

October 2016

Servicing your Loan

What should I pay every month?

Points on the monthly due amount…1. The minimum amount and the date on which it is due is shown on your monthly statement.

2. If you are still in grace period, this date will show the date your repayment term officially starts. You may start to make payments during your grace period without penalty if you wish to do so.

3. You may pay more than the monthly due amount without incurring any additional cost or penalties.

4. Your Prodigy loan is a fixed term agreement and the monthly due amount a variable value. Your own payment behavior and the quarterly changes to the applicable Libor rate (referred to as the Base Rate) affects this monthly due amount.

5. Every month we recalculate the monthly due value by amortizing the month’s opening balance over the remaining repayment term in months. This value therefore represents the value that, if paid every month, will settle the loan in the last month of the repayment term.

6. Therefore:

• If you pay exactly the statement amount every month, your monthly due amount will remain very stable and only change every 3 months as the base rate changes;

• If you pay more than the statement amount every month, your balance will reduce quicker than on a perfect schedule and your monthly due amount will also reduce;

• If you pay less than the statement amount every month, your balance will reduce slower than on a perfect schedule and your monthly due amount will increase;

The first payment for this graduating class will be:

October 2016

Servicing your Loan

How should I manage my loan balance?

Points on managing the loan balance and settlement…1. Interest starts accruing on your loan every month following the first tuition

disbursement. So even if no payment is expected during the grace period, your loan balance continuous to increase.

2. Although no payment is expected, we consider it a good idea to make payments in your grace period if you can afford to. Even small payments will help you control the loan balance to some degree.

3. You may make payment during grace period without any additional costs or penalty.

4. During formal repayment, you may make larger payments than required or even settle the loan early without additional cost or penalty.

5. The sooner you settle the loan and the smaller you are able to keep the balance, the more you save on interest.

6. If you wish to settle the loan at any time, please make contact with our payments team to request the settlement value to pay.

7. After settling the loan you will receive written confirmation that the loan is settled.

The first payment for this graduating class will be:

October 2016

Prepay in 3 years:John starts making payments in January right after he gets his job:

• Initial $10k payment with signing bonus in January 2016• Decides to increase his monthly payments to around

$1400 per month starting in February 2016• Ends payments in January 2019 (3 years)

John ends up paying $62k on the $50k loan

• The $50k loan adds only $12k of interests during the 3 years and with the extra repayment

2 repayment examples: $50k loan

1 2Normal payment over 7 years:Mary pays her $870 monthly payment

• Starts payment 6 months after graduation in May 2016• Pays monthly $870 that varies as the US Libor rate

changes• Last payment in April 2023 (7 years)

Mary ends up paying $74k on the $50k loan

• The $50k loan adds $22k of interests during the 7 years

Servicing your Loan

I am struggling with the financial commitment, what should I do?

Points on asking for help on repayment…1. Don’t disappear! Let us know if you are experiencing difficulties. Let us know what is

going on and what you need from us to help you.

2. Even if you are struggling, try and still make a monthly payment. Even if just a small amount. Your payment every month shows us that you are trying and gives us a wider range of options to try and help you with.

3. You are now in possession of a top qualification and we know your struggles are temporary. We have forbearance process in place to manage the loan through the difficult times to ensure you are still able to settle the loan in time.

4. Once you are back on your feet we can then work with you to get the loan back into current status.

5. We are not able to change any of the relevant loan terms or refinance the loan. The loan terms relating to repayment period and interest rates are fixed as they are tied to specific investment instruments.

The first payment for this graduating class will be:

October 2016

Servicing your Loan

How are Prodigy loans enforced?

Points on loan enforcement…The first payment for this graduating class will be:

October 2016

While we will endeavor to work with you to avoid default, it is important to note that our loans are enforceable in 150 countries.

Regardless of the country you are in there will be legal ramifications if you don’t work with us.

In addition to the legal consequences:

1. Your default will be registered with your local credit bureaus and courts which can severely limit access to credit in the future, it can also affect your ability to find a job

2. Legal proceedings will take place at your expense through an international process that awards judgment in our favor and is enforceable your country of residence and in the UK

3. The full outstanding balance of your loan falls due immediately4. Your school will be informed of your default5. Alumni who have invested their personal funds to provide you with a loan will be informed 6. Your local and regional alumni offices will be made aware of your default

Prodigy Finance Ltd is incorporated in the United Kingdom (Company Number 05912562) and register ed with the Offi ce of the Informati on C ommissioner (Reg. No. Z9851854).Prodigy Finance Ltd is authorised and regul ated by the Financi al Conduct Authority, and entered on the Financi al Services Register under firm registration number 612713. ProdigyFinance Ltd is an appointed representative of BriceAmery Capital Ltd w hich is authorised and regulated by the Financi al Conduct Authority. Prodigy Finance Ltd carries out bothregulated and unregulated business. Prodigy's registered address is Palladium House 1-4 Argyll Street, London, W1F 7LD.

www.prodigyfinance.com

+44 (0) 207 193 2832payments@prodigyfinance.com

More questions? Contact our payments team.