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CAT vs GMAT: Which one is right for you?

Almost every MBA aspirant would know that the CAT is a mandatory requirement for admissions into the IIMs and several other MBA institutions in India. However, if a candidate is planning to pursue an MBA from abroad, the GMAT is the requisite. Some of the business schools (B-schools) in India which consider CAT scores might also accept GMAT scores. However, any foreign business school would never accept the CAT score.

MBA

A number of MBA aspirants in India appear for CAT, some go for GMAT while the others, confused between the two, stay on the byroad. This is not just a matter of “which one amongst the two is easier”, but of which one is more suitable for a candidate.

The Trend

  • Over 23,000 applicants from India took GMAT in 2013, which was around 25 per cent more than what was in the year 2010. However, the percentage of CAT applicants has dropped down considerably since 2010.
  • Work experience holds a lot of importance with GMAT. The diminishing popularity of CAT and the rising interest towards GMAT quite justifies that the experienced professionals are keen to revisit their skills in the thick of the decelerating economy.
  • There is also a substantial increase in the number of b-schools in India considering the GMAT scores. Around 250 management programmes considered GMAT scores in 2013, which is quite a big number as compared to 37 which was 3 years back.
  • The quality of education offered, global exposure and the assimilated personality development are some key aspects of all the foreign business schools and which is simply incomparable for the experienced professionals.

For making up your mind and selecting the right one amongst the two, it’s highly essential to have a clear understanding of the aspects in which CAT and GMAT differ from each other. Here are 3 primary factors to look for:

1. Money

MONEY undoubtedly is the bottom line here. Presuming that not every candidate is able to get a scholarship for as a financial aid for a foreign MBA, here are some points you must consider:

  • If you have adequate funds (around 30-40 lakh rupees), it’s fairly recommended to go ahead with the GMAT.
  • If you could manage some amount (say 15-20 lakh rupees), you can still consider GMAT, as you would be able to manage the first few semesters and you might then find out some means to raise the funds once you’re out there.
  • If you are very tight on funds, but could manage taking a bank loan, going ahead with GMAT might still make sense.
  • If your case in none of the above mentioned cases, you could try going for an MBA in India.

2. Institutes in India v/s Institutes Abroad

  • If you’ve nailed the CAT, go for an MBA in India. The Indian IIMs are amongst the best institutes in the world. However, if you get a chance to select between an IIM and an international institute like The Harvard or London Business School, you should unarguably select the latter.
  • This is because the exposure which you would get in such foreign institutes is simply inimitable. Pursuing an M.B.A. from one the most acclaimed foreign institute will give you an edge in the global job market.
  • One much asked question is “What’s the value of an international MBA degree in India?”. The answer to this question is entirely subjected to which institute you’ve pursued your MBA from. An MBA from Harvard is highly valuable everywhere in the world while an MBA from a low grade institute abroad is equivalent to an MBA from a low grade institute in India.

Note: If you have an average GRE score then going abroad for a low grade B-School is not recommended.

3. What after the MBA?

  • This is probably the most essential factor to consider. The major question here is “Do you wish to settle abroad?”
  • Half of GMAT aspirants have a “yes” to this question while the other half feel they would come back, after living there for some years. However, the truth is that ultimately very few of them come back.
  • If the candidate is very sure about managing to find a job after the completion of his/her MBA abroad, then it’s wise to even go for a loan. You can possible payback the loan within a year (considering the average salary which Indians usually manage to get after their MBA abroad).

CAT v/s GMAT Characteristics

  • CAT can be taken just once a year (on the specific date) whereas the GMAT can be taken up to five times in a year (the date can be chosen as per the candidate’s convenience).
  • The rescheduling of GMAT is more flexible than that of the CAT.
  • The waiting period for candidates who wish to improve their CAT scores is one year (for re-taking the test) whereas for GMAT candidates, the waiting period is 31 days.
  • CAT test results are announced much later at a fixed date whereas the GMAT scores (Verbal and Quant) is available right after the test is taken (though the official score might take up to three weeks to reach you).
  • The CAT score is valid for only the forthcoming year whereas the GMAT score is valid for a time of five years.
  • The total duration of CAT is two hours thirty-five minutes whereas GMAT being a longer test lasts for around three and half hours.

So before you select one between the two, put the above mentioned factors into consideration. We hope you choose the right one for a brighter career ahead.

If you're preparing for GMAT and require coaching then you can post your GMAT coaching requirement here.

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Comments

Share your thoughts with the community or ask a question

Nicki 28/05/2019

I'll be preparing for CAT / GMAT, which will be better for MBA in Travel & Tourism and is it a good branch?

Mohit 14/05/2016

I am B.Com student. I am planning for MBA in PR. Which will be better option.. CAT or GMAT??

Sabiha 17/04/2016

I am B.Tech degree holder and currently have 4years plus experience in IT Industry. So should I go for GMAT or CAT??? and is it worth going for MBA considering my experience ???

Yash 07/01/2016

I'm an student from 3rd year Industrial and Production Engineering. I'm in a confusion that where should I go for my MBA. I was planning for abroad as it'll help me with many things like exposures like stuff. What do you suggest? Is it okay if we're not having job experience? Where should i join?

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