• Why is the quality of the students at a given institute important?
• Your batchmates are often the best source of learning: Most institutes in India follow a case-based learning methodology that relies heavily on the quality of interaction with peers.
• Building the right networks: A few years after your MBA, your batchmates will hold significant positions in the corporate world. It’s crucial to build strong networks, as high-quality students have a better chance of advancing their careers.
• The quality of students influences the institute is reputation: The institute you attend will affect how you are perceived throughout your career.
• A top institute attracts the best students, and these students are drawn to the best institutes. Therefore, a good institute and good students have a symbiotic relationship. As the number of students wanting to join an institute increases, the selection process becomes more competitive. Generally, the quality of a B-school is proportional to the rigour of its selection process. In essence, better institutes have more challenging entry requirements, and easier-to-enter institutes may not be as worthwhile.

Location refers to the geographical location of the B-School. Location does not matter for the top institutes; it matters only for the lower rung institutes. The impact that the location has on an institute is very little for the Top-30 institutes, while it becomes more and more pronounced as you go down the ratings list.

How does the location of a B-school matter?

• Companies often find it easier to recruit management graduates from institutes located closer to their headquarters. Thus, institutes in cities like Mumbai, New Delhi, and Bangalore generally score better than those in other cities. Cities like Chennai, Pune, and Hyderabad are next in line. (Top-30 Institutes are an exception.)
• B-schools employ a mix of full-time and part-time faculty members. Institutes in well-connected cities can attract part-time faculty members more easily, leading to better quality training.
• If you wish to take up trainings or internships with various companies, being in a city with a good industry interface increases your chances of securing such opportunities.

A factor that need not specially be emphasized is the reputation a given management institute commands and the image it perpetuates in the industry. While it can be said that it is natural for older institutes to have a better reputation than the ones that have started recently, it cannot always be generalized. Also, remember that it is often possible that a recently set up institute has been established by an older, well-established institute. In such cases, the "parent/guardian" institute certainly helps the new institute through its formative years. This help may include, but may not be limited to, faculty support, support in the selection procedure, and, more importantly, placement support. If an institute falls into this category, even though it is a newly-established one, students can be assured that the institute is a good one.

One thing that students should consider here is that they need not be unwilling to join a given institute purely on the basis that it is newly established. There are some institutes which might be newly established but there is some assurance with regard to their becoming one of the top in the near future. This is particularly so in case of the institutes that are started under the aegis of older, reputed organizations. One relevant example here is the relatively new IIMs. For instance, every time a new IIM is set up, there are doubts about whether it will be as good as its older siblings. It has to be remembered that, in due course, it is bound to establish itself and enjoy the benefits of the "IIM" brand name. What matters in the long run is the image of the institute during the course of one career and not just its image at the time one studied there.

Many students also apply to institutes based on the programmes offered by them. Programmes offered can be classified into two categories:

1. General Management Programme (GMP)
2. Specialisation-based Programme (SP)

A General Management Programme gives a student the flexibility to join any sector and thus affords maximum diversification and placement opportunities as opposed to a specialisation-based programme. All the IIMs and most of the Ivy League schools offer this programme to students.

Some B-Schools offer programmes catering to a specific sector or specialising in a specific area. Institutes like XLRI (PGDHRM), MICA, IRMA, and TISS are the best in their respective sectors, and students should have no reservation while applying to them.

However, there is a plethora of programmes emerging now catering to specific sectors and needs of the industry like those in actuarial science, retail, and insurance. The placement opportunities in these specialised programmes are restricted to companies in that sector and do not lend the kind of flexibility to one career that a GMP offers.

Many top institutes offering GMPs have, of late, started offering specialised programmes. Students should note that though the image of the institute lends credibility to such programmes, it cannot be equated to the GMP being offered. As one goes down the ratings list, this rub-off effect diminishes and one needs to carefully evaluate such specialised programmes before applying to them.

The single most important parameter in the selection of an institute is the return on investment. We need to consider how much money (in salary terms) we can expect to make post-MBA from a given institute and how much money will be spent in acquiring the degree. The following things need to be kept in mind:

One positive factor is that these days, it is relatively easy to get an education loan from banks at concessional rates of interest, particularly for those studying at top management institutes. A number of banks, both in the public and private sectors, are willing to provide these loans to those who have gained admission to reputed management institutes. In most cases, loans from these banks cover the cost of tuition and may also cover some of the other costs such as computer fees, library fees, hostel fees, and laptops.

Sometimes, it may happen that a given bank may not recognize the management institute to which the student has secured admission. In such cases, the bank may still provide a loan if the student can furnish adequate collateral or security.

Financing a management education is much simpler than it was in the past. If a student gets an offer of admission from the top B-Schools, they need not give up due to financial costs. The right kind of effort should be made to secure a scholarship or education loan. In most cases, the institute itself provides a merit-cum-means scholarship to deserving students. This supporting gesture from the institute can require details like the family income of the applicant or those specified by the institute. Generally, the institutes application form has queries regarding the manner in which the student intends to finance their studies. These questions should be answered very carefully and honestly. The scholarship-awarding body of the institute will consider these responses very carefully before arriving at a decision on the suitability of the candidate to receive the scholarship.