Why IIM’s are not worth it!!!
Indian Institutes of Management commonly know as the IIM’s (Started in 1961) are the top B-Schools in India. Also regarded as the best place for Entrepreneurs, which is also being proved by them to some extent, I am here to talk about what’s wrong with these institutes.
Admission
CAT (Common Admission Test) which is the only way in to get admitted in these top institutes, is among the toughest exams in India. Where sometimes students of 95+ percentiles are not admitted while the data on the website shows, for SC category the percentile can go as low as 70… (heartbreaking for general students & btw why are they mixing entrepreneurship with reservation???)
When there are only 20 IIM’s in India, each year more than 3 Lakh candidates apply for CAT, while the seats in IIM are nearly 4000+ & you will be shocked to know that more than 2000 seats are gone under reservation category.
Here’s the list for reservation-
- OBC- 27%
- SC- 15%
- ST- 7.5%
- PwD- 5%
(Reservation has fucked up the Education System in the Country)
Fees
I bet any IIM aspirant is not interested in joining any IIM which is below the top 3, (IIM- A,B & C)
- IIM Ahmedabad
- IIM Bangalore
- IIM Calcutta
Because only these 3 provide the best placement & packages. Rest of the IIM’s are just average (or maybe a bit better).
Although these are Autonomous institutes controlled by the government, the fees they are asking for is way too much…
The Fee for IIM Ahmedabad is more than 20 Lakh for 2 years and including the Hostel fees it can go as high as 25 Lakhs+ and that’s a super big amount. Although there is discount for students with economically weaker background as well as for meritorious students,
But when you study day & night to crack one of the toughest exam in India & still you need to pay such amount it’s not satisfying at all.
Education Loan
Now not everyone who is qualified can pay that amount so of course they will apply for education loans. Just FYI education loans are not too profitable for banks so they generally reject such loans. If bank accepts your loan the repayment starts after 2–5 years after getting the degree, depending on your amount. The rate of interest also varies, it’s low when amount is less than 10 lakhs and increases thereafter. Also on foreign loans the rate of interest is less when amount is less than 20 lakh ₹. Loans of higher amount are only provided on merit basis.
For any loan above rupees 7.5 Lakhs a collateral security is mandatory. The repayment period for 4–7.5 lakh₹ loan is 10 years & for 7.5Lakh & above is more than 12 years
Now that’s discouraging for lot of entrepreneurs.
Placements
Placements in IIM are great, especially when you are in the top 3 (A,B & C)
The maximum package in IIM can go more than 75Lakhs p.a. (but not in India so that’s actually less) and cannot go less than 20Lakhs p.a. if you are in top 3 (that means it’s a privilege only for 1200 Students)
IIM is having average placement rate of 85% & even higher.
So what’s wrong
Only 35% students in IIM become a entrepreneur. The main reason to highlight this point is that, As IIT is all about Engineer’s, in the same way IIM is all about Entrepreneurs, but this system…
The problem is when students are having a loan on their head (due to the high fees) they are forced to take a job, even if they don’t want to. Many of them decide they will work for 5 years, save money and then start a business but debt ruins their dream, because they are already having a loan of 10 years.
So after 10 years when their loan is settled, most of them have already given up on their dreams because after seeing a very high amount of fixed income from their job, they just want to play it safe.
All I can say is the institutes which are responsible for creating entrepreneurs is the sole reason why less people (from top institutes of India) are turning into entrepreneurs…
I hope they do something for the fee structure, that will be a huge benefit for youths wiling learn more about business!!!
Thank You
I hope you guys liked this one!!!
It’s my first attempt & will be posting more soon…
So please share it with all the people you know… would mean alot to me!
Peace✌️