High MBA fee in B schools not an admission deterrent; ROI plays key role

Almost all the top rated B schools whether IIMs or non-IIMs have increased their fee for MBA/PGDM 2016-18 but still the admission seekers outnumber the intake at these B-schools.   IIM Ahmedabad, IIM Bangalore, IIM Calcutta, IIM Lucknow, IIM Kozhikode, MDI, SPJIMR, XLRI among others have already increased their fee in a range of 7% to 30% http://www.mbauniverse.com/article/id/9482/IIM-Fee-Hike . Latest is the ISB who has followed IIMs and has increased the programme fee to Rs. 24 lakhs, probably the highest in India.

Little Impact of fee rise on MBA aspirants
But the fee hike does not appear to have made any impact on MBA aspirants, as the placement in 2016 has gone very high and with the anticipated high RoI, MBA aspirants are ready to face some hardship for a year or two after completion of their MBA while making repayment of the funds they propose to borrow loan with the interest.

Investment recovered in 1 year

Going by the fee structure and current placement trends in number of B-schools, it is evident that entire amount invested to pursue MBA/PGDM is recovered in not more than a few months or at the maximum in a year or two after getting placed at the campus.

High RoI keeps the hopes high

If you receive the admission offer from a good B-school but have no money to pursue MBA, you should not worry. Almost all the good B-schools have different financial institutions and banks at their campus. These banks offer education loans almost for the full amount of the fee on favourable interest rates and also ask for fewer documents to complete the process.

Not only you will be granted the loan, the interest concessions will also be made available to you if you continue repaying the interest part during the course period. The EMI for repayment would start when you get the job or after 1 year from the date of completion of the course whoever is earlier. Although you are able to repay the loan amount in a year or two, Bank would ask you to avail not less than 3 years or 5 years repayment window. Accordingly you should not be worried about fund arrangement to pursue your MBA.

Take decision judiciously
If you are a selected candidate for MBA 2016-18 at any B-School, please weigh all pros & cons on all parameters like infrastructure, learning, placement, legacy apart from the revised fee structure before arriving at the final admission decision to your preferred B-school.

Interestingly, it may be noted that IIMs have gone for the sharp increase in their fee structure but the private PGDM B-schools offering quality education have increased their fee by a meager 3 to 10 percent keeping pace with inflationary trends. Another key fact is that IIMs receive great funds from various sources including the Government while the private PGDM B-schools like BIMTECH, IMI, IMT, MDI, SPJIMR, TAPMI, XLRI among others have to manage on their own and still get high placement packages year after year.

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