MBA 2016-18: Know the 5 easy steps to meet fee & other expenses; must read

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Updated on April 13, 2016

There are Banks and other financial institutions which offer 100% study loan and ask for interest rates in the range of 10 to 12%

If we go with a planned and well thought of process, we may not only get the required money to pursue our dream MBA but will also save a lot of money during the course of study

The biggest hurdle in opting for a good MBA/PGDM programme from a top rated B-school is its high fee structure. In general, you need 10 to 20 lakh Rupees to complete your 2 year MBA/PGDM course whether from IIMs or non-IIMs. Apart from tuition and other fee, you need to meet other expenses on lodging & boarding and petty expenses to maintain yourself during your stay.

It is not easy to get an offer of admission in MBA programme from a top rated B school like an IIM, SPJIMR, IIFT, MDI, IMT, IMI, XLRI or any other top rated preferred B-school. It is heartening if you lose the chance of doing MBA from a coveted B school because of its high fee structure due to paucity of funds.

But, if we go with a planned and well thought of process, we may not only get the required money to pursue our dream MBA but will also save a lot of money during the course of study.

Identify the required amount
Calculation is must to know the actual need of funds to pursue MBA. If you borrow more you repay more. There are Banks and other financial institutions which offer 100% study loan and ask for interest rates in the range of 10 to 12%. Almost all the good B schools have banks in their campus. They have tailor made study loan schemes at affordable rates to pursue MBA from your dream B school. You should cross check with it before exercising other options to cater to your need.

Study different loan schemes
MBAUniverse.com Research team has worked out the economics on how you can save at least Rs.2 lakhs on your admission fee, if you opt for study loan from the right financial institution after negotiating a little.
All the banks have their own study loan schemes to fund the MBA study in India and abroad. These study-loan schemes are divided in two segments – one is the regular study loan for the students of normal professional colleges and the other is meant for premium institutes like IITs, IIMs, XLRI, MDI, SPJIMR, IMI, IMT, IIFT.

The difference in both types of schemes is that the study loan schemes for premium institutes offer you higher amount with less interest rate. Corporate/Head offices of these banks publish updated list of such premium B schools.

If your institute falls under the category of premium B-schools, you will get MBA study loan at low interest rate and during the repayment tenure of 7 years or so, you will be able to save a huge amount as in the initial years even a 0.25% hike rate in interest rate can make a cumulative effect coming in lakhs at the end.

Save on International tour
Many B-schools have started foreign study tour to various foreign institutes or have engaged in international exchange programme. The fee for foreign tour or international exchange programme runs in lakhs. If you are able to convince the B-school that you wouldn’t like to go for it, it is very much likely that you are exempted from it. Moreover, the value of the international tour may not be so much as it is claimed by the B-school.

Fee negotiation: Good idea
There are highly ranked B-schools who can offer you discount, scholarships, fee concessions and waivers. Cross check how much of it you can get. This will further reduce your financial burden while pursuing MBA.

Top B schools with different fee structure: Choose the best
Fee structure of top rated B-schools can vary not marginally but there could be a huge gap in the fee structure of 2 top rated B-schools.

There are 19 IIMs and other top rated B schools like IIFT, SPJIMR, MDI, NITIE, IMT, IMI and all have different fee structures. Even the new IIMs have different fee structure in a range of Rs. 11 lakhs to Rs.13 lakhs while the USPs are more or less remain the same. The fee structure of older IIMs and top B schools go upto Rs.20 lakhs.

If you can get a learning experience and RoI more or less at the B-school offering MBA/PGDM at lower fee structure, there may not be any need to pursue your MBA from an institute asking for high fee and other expenses.

Since the fee structure alongwith other parameters like faculty, infrastructure, programme structure and placement could be stated as the base to choose the B school, take the decision as per the past USPs of the institute instead of paying more.