The Indian Institutes of Management, known as IIMs, represent a collection of 20 public, autonomous institutes of management education and research in India. They offer postgraduate, doctoral, and executive education programs in the field of management. Among these offerings, the two-year full-time MBA program (formerly known as the Post Graduate Programme in Management or PGP) is the most prestigious and sought-after. In this expanded discussion, we will examine the IIM Fees for MBA 2 years, the return on investment, the availability of collateral-free loans, and the expected time required to pay off such loans.

The IIM fee structure could vary substantially, ranging from INR 13 lakhs to INR 28 lakhs. This wide range is largely dependent on the specific IIM institute. These fees generally encompass tuition, course materials, accommodation in a hostel, and various other related expenses such as library, computer, and sports facilities, medical insurance, and alumni activities, among other things.

Given this substantial investment, it’s essential to consider the return on investment (ROI). The ROI for an MBA from an IIM is typically very high, both in terms of monetary and non-monetary benefits. From a financial perspective, the ROI can be calculated as the percentage of the total cost of the program compared to the average annual package offered to students post-graduation.

IIM Fees For MBA 2 Years 2024

The IIM Fees for MBA through CAT for all the 20 IIMs are given below. Please note that the fees structure is subject to change as per the will of the IIMs. The data shown here is taken from the original website for each IIMs.

IIM Ahmedabad Fees for MBA

IIM Bangalore Fees for MBA

NOTE: In addition to the IIM MBA fees mentioned above, students will have to pay a mess fee in advance, of Rs 30,000, each term. Also, visit the IIM Call Predictor

IIM Calcutta fees for MBA

IIM Calcutta PGP program fee is Rs 31,00,000 which can be payable in four installments:

1. Payment of Rs 2,00,000 (commitment fee) at the time of offer acceptance.
2. Payment of Rs 10,00,000 by April 14, 2023 (second installment) furthermore Rs 60,000 is to be paid as a security deposit by Demand Draft (DD)/ Pay order favoring IIM Calcutta along with the second installment. The security deposit amount will be refunded on completion of the PGP program after deduction/ adjustment of dues, if any.
3. Payment of Rs 10,00,000 by July 21, 2023 (third installment)
4. Payment of Rs 9,00,000 by November 24 (fourth installment)

IIM Lucknow Fees for MBA

IIM Lucknow Fees Structure for PGP – I

Fees Structure for PGP – II

IIM Kozhikode Fees for MBA

Situtated in the lush green state of Kerela, IIM Kozhikode which is also regarded as one of the top B-schools in the country. The fees structure for PGP batch 2023 for IIM Kozhikode is given below:

IIM Indore MBA Fees for MBA

IIM Shillong Fee for MBA

• IIM Shillong is yet to release their fee structure for MBA this year.
• The total MBA 2 year fees for IIM Shillong in 2022 was INR 14,60,000.

IIM Trichy Fees for MBA 2 Years

• The caution deposit of Rs.30, 000/- is refundable at the time of leaving the Institute subject to the adjustment, if any.
• The term-wise amount indicated above is payable at the beginning of each term.

IIM Amritsar Fees for MBA

IIM Rohtak PGP Fees for MBA

• Students also have to pay placement support fees and Alumni Support/ Membership Charges & Refundable Deposits towards the following heads:

IIM Bodhgaya Fees for MBA Through CAT

IIM Sambalpur Fees for MBA

IIM Sirmaur fees for MBA

IIM Jammu Fees for MBA

IIM Ranchi fees for MBA

IIM Raipur

IIM Kashipur Fees for MBA

IIM Udaipur Fees Structure for MBA

IIM Nagpur Fees for MBA

• The total fee of the PGP program at IIM Nagpur for the batch of 2023-25 is Rs 18,90,000 excluding a refundable caution deposit of Rs 50,000.

IIM Vishakhapatnam Fees for MBA

Why IIM is Costly?

The reason why MBA from an IIM is expensive is due to the fact that they are not funded directly by the government. IIM apart from their teaching capabilities need to invest highly in the setup structure for Research and Entrepreneurship. Being the pioneer education institution of this country, they need to create a conducive environment for Business to blossom.

IIM also houses a better Residential structure and provides greater freedom to its students. The crowd that enters the IIM are generally in their early to mid twenties with enough understanding of their potential, in order to fulfill their demands they need to up the tally with their library based resources as well as residential facilities, hence the high fees structure. The Residential facilities not only houses the students, but also the administrators and the Professors in its premises.

IIM’s boast of the best student fraternity of this country and it becomes equally important for them to boast of the best Professors that the country has to offer- one big chunk of the IIM MBA fees is directly admitted to pay the professors for their Services, both through their Research and through their teaching. The Professors at IIM are noted around the world for their work and thus in order to retail them, it becomes important to offer them a compensation pay that is pragmatic and enables them to provide their best teaching services.

Also Read : IIM Selection Process

Payment of Fees

As a hypothetical example, if the IIM fees for MBA 2 years is INR 20 lakhs and the average annual package after graduation is INR 20 lakhs, the ROI would be 100%. This would indicate that, theoretically, the initial investment could be recovered within just a year of employment, assuming minimal living costs and taxes. This example is, of course, a simplification, but it illustrates how high the ROI can be for an IIM MBA.

However, this does not mean that you will be able to pay off a loan within a year. The actual time it takes to repay a loan depends on various factors, including the interest rate on the loan, the repayment period agreed with the bank, the starting salary post-MBA, annual salary increments, living expenses, and individual saving and spending habits.

In India, many banks offer collateral-free loans for education, especially for students admitted to prestigious institutions like the IIMs. The term ‘collateral-free’ means that these loans do not require a security deposit or guarantee. Instead, they are given based on the reputation of the institution, the anticipated earning potential of the course, and the student’s academic record.

Some Indian banks have specific tie-ups with the IIMs to provide collateral-free loans up to a certain limit. However, while these loans do not require collateral, they still carry interest. The interest rates are often similar to regular education loans. The repayment of these loans typically begins 6 to 12 months after the course completion or after securing a job, whichever comes first.

The repayment period for education loans in India typically ranged from 5 to 15 years. The exact repayment schedule is set by the bank and can be negotiated at the time of taking out the loan. However, the high earning potential of an IIM graduate often means that it’s possible to repay the loan within a few years, especially if one is disciplined with money and maintains a relatively frugal lifestyle.

Also Read : All MBA Entrance Exam Info

IIM Fees Vs. Placement : The ROI

Coming to the ROI provided by IIMs and settling the IIM Fees Vs. Placement debate, here is a table representing the fees and IIM Average package as per the IIM Placement statistics 2023.

How To Pay Off Your IIM Fees for MBA

While the benefits of an IIM MBA are clear, it’s essential to have a strategy to manage student loan repayments effectively. Here are a few strategies that can help.

1. One of the strategies to manage student loan repayments is to live frugally. It’s tempting to adopt a luxurious lifestyle immediately after securing a high-paying job post-MBA. However, doing so can make it challenging to repay the loan quickly. Living below your means, especially in the initial years of your career, can free up significant money to pay off the IIM study loan faster.
2. Another strategy is to make more than the minimum payment whenever possible. Paying more than the minimum required payment can reduce the total interest paid over the life of the loan. It’s especially effective if you start doing this early in the repayment schedule when the majority of your payment goes towards interest.
3. Thirdly, consider refinancing your student loan if you get a lower interest rate. Refinancing essentially means you take a new loan to pay off your existing loan. The new loan ideally should have a lower interest rate or better terms. However, be sure to consider any processing fees and read all terms and conditions before refinancing.
4. Lastly, regularly reassess your financial situation and adjust your repayment plan accordingly. For instance, if you receive a significant bonus or a substantial salary increase, consider allocating a portion of that towards your loan repayment.
5. It’s also worth noting that while repaying the student loan is important, it’s equally essential to start saving and investing for your future. It would help if you strived to find a balance between loan repayment, savings, and investments.

Watch : Top 30 MBA Colleges in India

IIM Fees Structure Frequently Asked Questions

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