The following are a few facts about the fees at business schools in India:

• The total fee charged by management institutes usually includes tuition, books, library, exams, etc. Hostel and lodging, exchange programs, laptops, etc. are often extra.
• University departments that offer post-graduate management programs often charge between Rs.10,000 to Rs.50,000 for a two-year program. For example, the course fee at DFS Delhi, DBE DU, and DSE DU falls within this range.
• If you get into one of the top 50 business schools, the fee should not be a major concern as your post-placement salary will likely cover your investment. As you go lower in the rankings, the fee becomes more important and should be considered carefully.
• The fee levels at two business schools can be a deciding factor if you receive offers from schools in the same category.
• In general, government institutes charge less than private business schools. Even within the same category, fees can vary. Not all IIMs or IITs charge the same fee. For example, the fee for IIT Kanpurs management program is significantly lower than at most other IITs.

A. Education Loan

These days, it is relatively easy to get an education loan from banks at concessional rates of interest, especially for those studying at top management institutes. This is supported by the Ministry of Human Resource Development, which aims to ensure that no deserving candidate should ever have to forgo their management education dreams due to lack of money.

1. A number of banks, both in the public and private sectors, are willing to provide these loans to those admitted to reputed management institutes.
2. Loans from these banks cover tuition costs and may also include other expenses such as computer fees, library fees, hostel fees, and laptops. If the student participates in an exchange program, that cost may also be covered.
3. The interest rates vary, with public sector banks generally offering lower rates (around 9%).
• Typically, a moratorium of 1-2 years is attached to the loan, meaning you only need to pay the interest during this period. Principal repayment starts after this period.
• The interest component of the education loan is exempt from income tax under Government of India rules. For example, if the loan interest rate is 10% and you are in the 30% income tax bracket, the effective rate of interest is 7%.
• No security or collateral is required for loans up to a limit (typically around Rs. 4 lakhs). For loans above this limit, banks may or may not require security, depending on the reputation of the B-school.
4. Sometimes, a bank may not recognize the management institute to which the student has been admitted. In such cases, the bank may still provide a loan if the student can provide adequate collateral or security.

B. Merit-cum-Means Scholarship

In most cases, the institute itself provides a merit-cum-means scholarship to deserving students. Typically, each institute will have a set of public or private bodies that offer scholarships based on financial background, qualifications, performance in entrance tests, and performance at the B-school.