A graduate degree in management is like a great option for any student who wants to be making a career in the management field. India is the home of more than 3000 business schools for aspiring students of MBA. But whether someone can go to these schools or not completely depends upon the money factor. So it is important to estimate their decision on the basis of the following parameters:
· Badge value
· Alumni network
· Opportunity cost
· Preparation cost
· Tuition fees
· Overall Return on investment
These parameters are an important tool for understanding the real cost required to study MBA in India. Well the cost of getting a degree of MBA is far less than other overseas countries. MBA is always the first preference given to the students who wants to work under any renowned company. There are many companies which work in collaboration with many international universities and provide an international standard of business education.
Tuition fee and accommodation charges:
Well this is a very important type of cost. Every student needs proper accommodation program. A 2 year hostel facility will cost around 12-25 lakhs. A B - school which is in collaboration with GMAT accepts the most intellectual students. Their fee levels are also higher than the other schools. So on the average student should be ready to spend 20-25 lakhs in India and around 70 lakhs in overseas countries. Education loans are present for higher studies at the interest of 12% against any security deposits of any collateral. These loans are available at every local bank of India.
There are many industries which are flourishing in the background for the preparation of the exam. An average cost for getting prepared in the exam for b-schools are 25000. And 26000 more is added to this cost for getting prepared for the interview, essay writing and other personality tests.
The opportunity cost:
Generally students do this kind of courses for boosting their resume. Courses like MBA help to accelerate or totally change the lives and career of students. So it’s necessary to know about the opportunity cost. Opportunity course includes different types of costs like promotion, professional experience and foregone salary. The future value of every asset should be always kept in mind, so investments in higher studies.
Cost of application:
The most important cost is actually the cost of the application of CAT. The fee of the application is nearly 1600 INR. By this exam, you are going to apply for the IIMs. But if the student does not want or get a chance in IIMs then they have to choose other application forms for different b- schools. Each application has their set of range of cost varying from 1500 to 2000. GMAT has a higher cost and require 200-250$ for giving the exam and taking the forms.
Since the cost of doing courses like MBA are too high, so it creates a severe pressure on the student and the family. Student needs not only constant financial support but also needs an emotional support from their family. It is very important to think and plan about every kind of financial options in a short and long term basis. At last we can conclude that the achievements and benefits due to MBA can overweigh the financial costs.