Paying for an MBA

Back when Amt Grg and I did our MBA at IIMA, the program was not too expensive. As salaries have risen in India, the cost for an MBA have also gone up. While an MBA is still worth it, many people might find it hard to pay for an MBA.

Here’s an interesting article about how to pay for the rising MBA fees in India.

Several IIMs recently increased their fees by 100,000 rupees or more. A two-year management of business administration program at the coveted IIM Ahmedabad now costs around 1.4 million rupees ($31,500), while the fees are 1.35 million at IIM Calcutta and 1.3 million rupees at IIM Bangalore. Only a small percentage of students qualify for breaks in fees at these schools.

Luckily, there’s help at hand.

India’s banks have been increasingly boosting their education loan portfolios and new players are entering the market. In December, home loan giant HDFC Ltd. bought a 41% stake in non-banking financial company Credila Financial Services, which specializes in giving education loans. HDFC hopes to eventually buy out the entire company.

@Amit, I am not sure if there are any people left in India who question whether an IIMA MBA is worth it. Do you think we still need to make a “business case”?