IIM fees: A two-year M.B.A degree may cost 12 years of debt;

An M.B.A degree from the Indian Institute of Management (IIM) Jammu might result graduate in debt for up to 12 years or 152 months.
That represents the current cost of an MBA programme at an IIM. For the two-year programme, IIM Rohtak graduates can expect to pay EMIs for more than 11 years.

To give clear perspective, a graduate from one of the nation’s premier b-schools, Indian Institute of Technology (IIT) Delhi’s management studies programme, will be debt-free in less than four years.

As per the Annual report of an IIM placemet, the top 50% of the group, who will receive the most lucrative offers in 2021–2022, comprised 12 of them, and all specified the average and median incomes for the entire batch. This information was used to determine the average incomes for the bottom 50% of the batches, as well as tax deductions and net take-home pay. Based on this, the loan terms were computed using a principal amount equal to the cost of the two-year programme at the particular IIM as well as an annual interest rate of 9.5% for student loans. Even though the State Bank of India (SBI) school loan interest rate can be 10.2%, the last example is quite normal.

Even if they attended a government-funded public university, a recent IIM Jammu alumnus will be in debt for more than ten years if they don’t make any partial payments on the principle amount for the full loan time. The established IIMs, IIM Ahmedabad, IIM Calcutta, and IIM Bangalore, which are financially independent and no longer receive government funding, charge almost as much tuition as the younger IIMs, despite the fact that the latter are still government-supported.

IIM: M.B.A. Fees and education loan during COVID

The applicable fees were decided in 2020–21 for the class graduating in 2022. IIM Ahmedabad, IIM Bangalore, and IIM Calcutta were the most expensive that year and for years following, with a two-year MBA curriculum costing at least Rs 20 lakh for the class. IIM Sirmaur, IIM Sambalpur, and IIM Bodh Gaya were at the other end of the spectrum that year. Then there are some who bill between 12 and 16 lakh rupees. The Indian Institutes of Technology’s management programmes were considerably less expensive in comparison, with IIT Kharagpur’s Vinod Gupta School of Management costing the highest tuition of Rs. 10.29 lakh for an MBA. Even yet, this charge was lower than the lowest IIM rate.

IIM fees and average package Salaries

All IIMs reported 100% placements in 2021–22, which means that all students who applied for placements were hired, with the exception of IIM Ahmedabad, IIM Tiruchirappalli (IIM Trichy), and IIM Visakhapatnam. Information on the average compensation for the top 50% was withheld by eight IIMs. They derived this number from information they had on mean and median incomes as well as averages for the top 20% or top 25% of earners. The values that were used to compute this figure from other data have been highlighted.

The bottom 50% of employees at IIMs make an average income of Rs. 15.97 lakh. According to the identical formula used for the IIMs, this amounts to Rs 13.15 lakh for the IITs. However, the longest tenure that the poorest 50% of earners with IIT DOMS degrees will likely have is 67 months (at IIT Jodhpur), or less than six years. This did not include IIT Mandi.

IIM average package, top and bottom 50% (In Rs for 2021-22)