Avani Rathore, an alumna of the Indian Institute of Management (IIM) Calcutta, has repaid her Rs 30 lakh MBA loan in two years . This timeline is significantly shorter than the typical five to seven years for IIM Calcutta loans. Rathore achieved this by using four distinct income streams to aggressively pay down her debt.
Aggressive Repayment Strategy
Rathore’s approach began before her MBA. She maintained pre-MBA savings to reduce the initial loan principal. During the MBA program, she directed her high-stipend summer internship earnings directly toward the loan.
After securing a Pre-Placement Offer (PPO), Rathore took on part-time projects during her final semester. Post-graduation, she allocated over 70% of her monthly take-home salary to loan repayment. This strategy prioritized debt reduction over other financial options.
IIM Calcutta's Return on Investment
IIM Calcutta’s MBA program offers a strong return on investment. Program fees range from Rs 27 lakh to Rs 33.5 lakh. Placement reports indicate a 100% job placement rate for graduates.
The average compensation package (CTC) for the 2024-2026 batch is Rs 34.23 lakh. The highest domestic package recorded was Rs 1.45 crore. These figures support a faster loan repayment compared to many international business schools.
Financial Choices
Rathore opted for rapid loan repayment despite available tax benefits. Indian tax law allows deductions on education loan interest for up to eight years under Section 80E. Rathore stated that becoming debt-free provided her with psychological freedom and enabled greater career risk-taking.
Her experience demonstrates a successful model for MBA graduates facing substantial student debt. It highlights the importance of financial planning and diversified income generation.
Key Takeaways for Students
Rathore’s strategy offers a blueprint for current and future MBA students. It emphasizes proactive financial management to accelerate debt repayment.
By combining savings, internship income, side projects, and salary allocation, students can manage and reduce their student loan burdens effectively. This approach can lead to earlier financial independence.
