If you’re planning to pursue an MBA in India, the CAT exam is your golden ticket. It’s not just another entrance test — it’s the most competitive and respected MBA entrance exam in the country. Cracking the CAT exam opens doors to the prestigious IIMs and over 1,000 top business schools across India.
In this comprehensive guide, we cover everything you need to know about the CAT exam: eligibility, syllabus, exam pattern, top colleges, fee structure, selection process, and how to finance your MBA. Let’s dive in.
What is the CAT Exam?
CAT (Common Admission Test) is a national-level entrance examination conducted annually by the Indian Institutes of Management (IIMs). The primary purpose of the CAT exam is to assess candidates for admission into MBA and PGDM programs at IIMs and other leading B-schools in India.
The exam evaluates three key areas:
- Verbal Ability and Reading Comprehension (VARC)
- Data Interpretation and Logical Reasoning (DILR)
- Quantitative Aptitude (QA)
The CAT exam is conducted in a computer-based format, typically in late November. It attracts over 2 lakh applicants every year from diverse academic and professional backgrounds.
CAT Exam Eligibility Criteria
To apply for the CAT exam, you must meet the following criteria:
- A Bachelor’s degree with at least 50% marks (45% for SC/ST/PwD candidates)
- Final-year students can also apply
- There is no age limit
This means graduates from any stream — engineering, commerce, arts, science — are eligible to take the CAT exam.
CAT Exam Pattern and Syllabus
Understanding the structure of the CAT exam is crucial for effective preparation. The paper consists of three sections and is conducted in a time-locked format, meaning you cannot switch between sections.
CAT Exam Structure
- Total Duration: 2 hours
- Sectional Time Limit: 40 minutes per section
- Total Questions: Around 66 (subject to change)
- Question Types: Multiple Choice Questions (MCQs) and non-MCQs (TITA)
Section-wise Breakdown
1. Verbal Ability and Reading Comprehension (VARC)
- Number of Questions: ~24
- Topics: Reading passages, para jumbles, sentence correction, vocabulary, summary writing
- Focus: Comprehension skills, grammar, logical flow
2. Data Interpretation and Logical Reasoning (DILR)
- Number of Questions: ~20
- Topics: Graphs, tables, data caselets, puzzles, arrangements, logical deduction
- Focus: Analytical thinking, pattern recognition, problem-solving speed
3. Quantitative Aptitude (QA)
- Number of Questions: ~22
- Topics: Arithmetic, algebra, geometry, number systems, profit & loss, percentages
- Focus: Basic mathematics (Class 6 to 10 level), application-based problem solving
Marking Scheme
- +3 for every correct answer
- -1 for incorrect answers (MCQs only)
- No negative marking for non-MCQs
Colleges Accepting CAT Exam Scores
Top IIMs (Old IIMs)
These are the most prestigious business schools in India:
- IIM Ahmedabad
- IIM Bangalore
- IIM Calcutta
- IIM Lucknow
- IIM Indore
- IIM Kozhikode
Newer IIMs (Still Excellent)
Established post-2010, these IIMs are rapidly rising in reputation:
- IIM Udaipur
- IIM Trichy
- IIM Rohtak
- IIM Ranchi
- IIM Raipur
- IIM Kashipur
- IIM Bodh Gaya
- IIM Sambalpur
- IIM Jammu
- IIM Nagpur
Non-IIM Colleges Accepting CAT Scores
Many reputed non-IIM institutes also accept CAT scores:
- Faculty of Management Studies (FMS), Delhi
- Management Development Institute (MDI), Gurgaon
- SP Jain Institute of Management and Research (SPJIMR), Mumbai
- Institute of Management Technology (IMT), Ghaziabad
- IITs (SJMSOM IIT Bombay, DMS IIT Delhi, DoMS IIT Madras, etc.)
- Xavier Institute of Management (XIMB), TAPMI, GIM Goa, LIBA, and others
Even if you don’t make it to an IIM, a good CAT score can secure admission to several top-tier institutes.
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Cost of an MBA via CAT Exam
An MBA from a top Indian business school is a significant investment, but the return on investment (ROI) is equally rewarding.
Estimated Fee Structure
- Old IIMs: ₹23 to ₹30 lakhs (2 years)
- New IIMs: ₹15 to ₹21 lakhs
- Non-IIMs: ₹10 to ₹25 lakhs
These costs include tuition fees, hostel charges, mess expenses, and academic materials. However, placement salaries from top B-schools often exceed ₹20–30 lakhs per annum, making the cost worthwhile.
How to Finance Your MBA After the CAT Exam
1. Education Loans
Most public and private banks in India offer student loans for IIM and top B-school students. Some key benefits:
- No collateral or guarantor for IIM students
- Loan amount up to ₹50 lakhs
- Moratorium period of 6–12 months after graduation
- Repayment tenure of 7–10 years
2. Scholarships and Financial Aid
All IIMs provide need-based and merit-based scholarships:
- Full or partial fee waivers
- Criteria based on family income (usually below ₹6–8 LPA)
- Additional scholarships for SC, ST, OBC, and EWS candidates
3. Government Schemes
- Vidya Lakshmi Portal: Centralized platform to apply for multiple education loans
- State-level support based on reservation and income categories
In short, financial limitations should not be a barrier for students with talent and determination.
Selection Process After the CAT Exam
Clearing the CAT exam is just the first step. Here’s what happens next:
1. Shortlisting by Institutes
Each institute has its own cutoff percentile. They may also consider academic background, work experience, and diversity.
2. Written Ability Test (WAT)
A short essay or written response based on a prompt. Duration: 15-30 minutes.
3. Group Discussion (GD)
A group discussion or activity to evaluate communication and teamwork skills.
4. Personal Interview (PI)
A one-on-one interaction to assess personality, goals, academic and professional background.
5. Final Merit List
Each institute uses a unique formula considering:
- CAT score
- Academic performance
- Work experience
- Gender and academic diversity
- WAT and PI performance
Final Thoughts
The CAT exam is not just an entrance test — it’s a stepping stone to a transformative career in management. Whether you aim to join an IIM or any other top B-school, a good CAT score can open countless opportunities.
The best part? It doesn’t matter what your academic background is. With smart preparation, mock tests, and a focused mindset, anyone can succeed. Start your CAT exam prep early, stay consistent, and keep your confidence high. Your MBA dream is absolutely achievable.
Frequently Asked Questions (FAQs)
1. What is the CAT exam and who can apply?
CAT (Common Admission Test) is an entrance exam for MBA/PGDM programs in India. Anyone with a bachelor’s degree (with at least 50% marks for general category or 45% for SC/ST/PwD) can apply. Final-year students can also appear.
2. Is CAT exam only for IIMs?
No. While CAT is primarily for admission into IIMs, over 1000+ B-schools in India also accept CAT scores, including FMS, MDI, SPJIMR, IITs, and more.
3. Is the CAT exam tough to crack?
CAT is challenging but not impossible. With consistent preparation, practice, and mock tests, students from any background (engineering, commerce, arts) can crack it.
4. How many times is CAT conducted in a year?
CAT is conducted once a year, usually in the last week of November.
5. What is the duration of the CAT exam?
The total duration is 2 hours, divided into 3 sections of 40 minutes each. The sections are time-locked and cannot be switched during the test.
6. What is a good CAT score for IIM admission?
A percentile of 98+ is generally needed for old IIMs. For newer IIMs, a percentile of 90–95 may be sufficient, depending on your academic profile and category.
7. Can non-engineering students crack CAT?
Absolutely! Many non-engineers from commerce, arts, and science backgrounds get 95+ percentile and enter top IIMs. CAT mainly tests logic, comprehension, and math till Class 10 level.
8. Do IIMs offer financial aid?
Yes. All IIMs provide need-based financial aid and scholarships to students from economically weaker sections. Loans from banks are also easily available without collateral.
9. What happens after the CAT exam?
If you meet the cut-offs, you’ll be shortlisted for the WAT (Essay), GD (Group Discussion), and PI (Personal Interview) rounds. Final selection depends on overall performance and academic/work profile.
10. Can I prepare for CAT without coaching?
Yes, many toppers prepare on their own using online resources, books, and mock tests. However, coaching can help with structure, doubt-solving, and peer competition.