Universidad Carlos III de Madrid MBA

This university is going to be my friend’s destination for the next one year. After few months of searches and discussions with alumni we end up choosing this school for her MBA. I hope this turns out to be an amazing experience for her in her life as well as her career. I would give an Indian touch to it as most of the calculations are done in Indian Rupee. This MBA is one of the cheapest in Europe and its alumni does have an interesting experience to share. The only issue for this school would be the job situation in Spain and it gets more tough for the Non EU citizens.

http://www.mba-master.net/en/index.shtml

Initial Expenses:

Tuition Fee = 12000 Euros = 7,20,000 Rs

Airfare = 40,000 Rs

Medical Insurance = 30 Euros X 12 = 360 Euros = 21,600 Rs per year

Laptop = 40,000 Rs

Spanish Class = 7,000 Rs ( in India )

Books = 300 Euros = 18,000 Rs

Monthly Expenses:

Apartment = 500 Euros max. = 30,000 Rs

Food + other expenses = 350 Euros = 21,000 Rs

Phone = 50 euros = 3,000 Rs

So for 12 months = 10800 Euros = 6,48,000 Rs

So Total expenses= 14,94,600 Rs

If we take a 7 % margin ( for unintentional expenses ) so we will need a loan of 16,00,000 Rs from the bank considering zero investment from anybody.

Assumptions included in this costs:

1. Apartment can be much cheaper if she shares with other people and most students live like that. The ex student from facebook told us that apartments can be between 250 euros and 1000 euros depending how comfortable you want ur house.

2. She won’t be earning anything during her course. If she finds a job in Madrid as a part timer then most of living expense estimates would be cut down by half. She would be free in the mornings from Monday to Thursday. But she needs to have a basic spanish knowledge to get a small part time job ( ex: waiter/ store clerk / or maybe a shop assisstant ).

So I used the Canara Bank loan calculator and she can start repaying her loan 6 months after getting a job or 1 yr after graduation whichever is earlier. She can also choose to pay it in 5 years or 7 years.I just did a quick search about loans from Canara bank and it seems the prevailing rates is 9.75% for loans upto 20 lacs and for girl students it is 8.75 .

Let’s choose 7 years repayment of the educational loan and in with the 8.75 % interest rate she would have to pay 25,539 Rs per month for 7 years. If she repays it early, then even better considering you have pay less interest. The total interest on a loan of 16,00,000 rs would be 5,45,276 Rs in 7 years. This is not at all a big amount. People pay much much more for housing loan from private banks.

The Experience in Madrid is going to change both of your’s life for sure. You will see that world is full of opportunities and you don’t have to limit yourself in one corner of your office to pay your monthly electricity bills. I guess life’s much more than buying a car and buying a house for yourself. You guys at this age should experience the world. You have time to settle down for your house loans and car loans in your future life. Still in 20′s and you guys should go for it. I have so many different kind of people over in Tokyo that now i don’t even think that any profession can be small. Even the chef at an Indian restaurant earns more than over here, i,e 2,00,000 Rs per month. His employer also pays for his two return trips to India an year. So it all depends on what you want.

All this would be possible if she takes this MBA damn seriously and makes an active effort to get it done the way it would benefit her the most. You need to work hard, learn spanish, study MBA, maintain a relationship and then party too all simultaneously. So you need to give your 200%.

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