Should freshmen take a 15 lakh bank loan, and study for an MBA in TAPMI or KJ SOMAIYA?

Let us understand this scenario with a simple calculation

• Loan Amount - 15 lakhs
• Interest rate - 12%
• Repayment period - 5 years
• EMI - 33,367
• Total Interest Paid in 5 years - 502000
• Tax saved in 5 years (considering a 20% tax slab) - 100400
• Net amount paid in 5 years - 1500000+502000–100400 = 19,01,600
• Average package in Tapmi- 15 LPA
• Monthly In hand- 97.5k to 1 lakh

It will leave you with approx. 45 to 50K in hand every month, which is good enough to survive in any city in India.

Considering an 8% annual increment, after 5 years your salary would be 22.03 LPA, making it approximately 1.84 LPA per month.

I feel it is worth the money you are going to spend. It is always better to take a loan for your MBA.