MBA is the most popular master’s degree among Indian aspirants with approximately 3,50,000 aspirants aspiring for an MBA annually. The decision to pursue MBA needs financial planning as the cost of education is rising significantly. It requires rational, quick and customized solutions to the problems of financing the course.
Costs involved in undertaking an MBA program can be broadly classified under two major heads:
Pre-Admission Costs: Pre-admission cost is generally the cost of the forms which is normally between Rs. 800-1500 per institute. Some institutes such as K.J. Somaiya charge some fee for GD/ PI also. The cost also comprises Rs. 30,000-35,000 for test prep classroom coaching and Rs. 12,000-15,000 for applications to different B-schools.
Admission and Tuition Costs: It generally includes admission cost, tuition fee, and cost of the study material, hostel charges and other miscellaneous expenses. It’s around Rs. 6-15 Lakhs for privately run schools while a manageable amount of Rs. 30,000 - 1,00,000 comprises the fees of university affiliated departments, like FMS, Delhi University. The following tables will give you an idea of the fees structure of different B-schools. (including IIMs and other elite B-schools institutes).
|IIMs||FEES for 2 year program (in Rs.)|
|Other IIMs ( Shillong, Rohtak, Ranchi, Trichy, Nagpor, Vishakhapatnam, Amritsar, Bodh Gaya, Udaipur)||10,06,000-12,00,000|
|B-SCHOOLS||FEES for 2 year program (in Rs.)|
However, worrying about these costs in this scenario is a futile task. Funds are never a constraint for students who secure admissions in these prestigious institutes, since banks offer liberal educational loans. Most institutes provide a good assistance to arrange educational loans.
Loans: Loans cover virtually all costs associated with the program i.e. academic fees, books, hostel expenses (food and rent), computer purchase and study tours. In short, every cost associated with your course is financed through loans. Towards the end, the institutes’ authorities provide to the bank a detailed Schedule of Expenditure required for undergoing the course and, accordingly, the bank makes the requisite payment direct to the institution as per the timetable. The expenses paid by you before you actually get the loan are also paid by the bank to you as part of the total loan sanctioned. The rate of interest usually charged on such loans, varies from bank to bank; it is usually around 11.5% per annum on a reducing balance basis i.e. you will pay interest only on: the total loan amount minus the repayment done by you so far. For more details, get in touch with any public/ private sector bank. In case you could not make into the top 50 private institutions and have financial pressure you should opt for a government affiliated university department.
While rising MBA fees has been a major cause for concern for MBA aspirants in India, however due to assured bright career options after the MBA, students can easily avail educational loans at affordable costs. Hence, MBA fees should not hinder your dream of pursuing your management education from the B-school of your choice!