June 4, 2019

How an MBA degree from India can be more expensive than an IVY league Business School

How would you explain the cost-benefit comparative analysis for an MBA degree from a top Business School in India vis-a-vis an MBA program from some of the best business schools in the world?

Schools in India are not cheap as compared with the best business schools in the world.

Comparison between the Top Indian business school and a Top 10 US MBA programs. I have also inserted appropriate URL’s and loan EMI Calculators for both the countries (India and ABROAD).

Many MBA applicants turn down the Top 10 US MBA programs when they compare the costs. However, they do not understand the following scenario: They will have savings every month if they go to a Business School abroad. In India, they will be under a lot of debt considering the salaries and the loan repayment terms. See the calculations (With Facts statistics from the business schools’ websites. This is factual data and not speculation.

MBA ABROAD: They will have savings and an amazing lifestyle.

MBA INDIA: The majority of them will have Loan Burden and average lifestyle.

See the table below and decide where do you want to be

Total Cost of Education 1 CRORE  

20 to 30 Lacs

Loan Repayment Terms Max up to 20 years @ 8.25%  

10-15 Years – 11.5%


Average Annual Salary $ 112167 ( Joining bonus is separate: $ 28000)

INR 69,54,354 + INR 17.36 Lacs Joining Bonus


INR 17,41, 081 (No information on joining bonus was available. Not sure if the joining bonus/relocation is a part of this figure).


Average Monthly Salary INR 5,79,529 INR 1,45,090
Average Monthly Salary after Taxes INR 405670 INR 1,01,563
Average Monthly expenses $ 2,000 -$3,500

INR 1,24,000-INR 2,10,000

INR 60,000-INR 70,000


( Mumbai/Gurgaon)








10 Years- $1913 ( INR 118606)

20 Years-$ 1,329(INR 84,568)

INR 37,193( 10 Year Repayment)

INR 30,688 ( 15 Year Repayment-Max Term)

MONTHLY SAVINGS INR 80,000 to INR 2,00,000

Surplus Available for Car Loans/Homeloans

(Considering the max and min range of loan repayment terms and your monthly expenses)


-INR 4,000( Negative) to INR 10,000

Not sufficient for Car Loans

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