Short answer: It will be a good decision.
Long answer:
- Taking a loan to finance your MBA will mean you have an EMI of Rs. 45k that you will be paying for 7 years (this is based on the Rs. 23 lakh loan taken by me for my Class of 2013 MBA).
- You can reduce the EMI or duration by not taking the full loan amount or by foreclosing the loan.
- If you get placed with a take home that is Rs. 45k more than your current job, then congrads, you have an instant improvement in your net earnings! Based on the average package size, there is around 50% chance that this will happen.
- On the other hand, if you do not immediately increase your net savings, you will still win in the long term, because: