How long does it take to repay a loan of around 35 lakhs after doing a PGP from ISB Hyderabad/Mohali? Is it worth it?

To calculate the approximate time it will take to repay a loan of around 35 lakhs after doing a PGP from ISB Hyderabad or Mohali, let’s assume some numbers. That will make the calculation easy to understand.

Rate of Interest: 9.50%

Term of the moratorium: Duration of the course where you just pay the interest.

Loan repayment tenure: 7 years post moratorium period

EMI: Rs. 57,203.93

An EMI of INR 57,203.93 means a monthly salary of around INR 150000 or an annual package of INR 27 Lakhs is required. If you are confident that you will get placed with a similar package and can repay the loan easily go for it. One relevant thing you should consider is whether the knowledge you gained throughout the course is worth it afterward or not. I think only 35-40% of one’s salary should be used in repaying the loan. But that does not seem to be the case here. So in my opinion pursuing a higher education course won’t necessarily benefit you. In contrast, it may become a major issue due to the repayment of loans.