GMAT v/s CAT: How to Choose the Right Test in 2023?

The decision to take the GMAT over the CAT is a critical one as it can not only open a lot of doors of opportunity but also save a lot of time and money. Often students feel perplexed when it comes to deciding between the two tests as their mind is shrouded with a lot of questions. Which test is better – the GMAT or the CAT? How are these two tests different? Which test is easier to crack? Will preparing for one test enable one to take both tests? By the end of this article, you will be able to find the answers to most of these questions.

The CAT was initially introduced as an entrance exam for the IIMs but over the years its popularity has faded and a lot of colleges/universities now prefer the GMAT over the CAT.

While the CAT is mostly accepted by IIMs, the GMAT, in addition to being the preferred test for admission to MBAs abroad, is accepted by 150+ B-schools in India.

The GMAT is accepted by top MBA programs that don’t require an applicant to have work experience such as IMT Ghaziabad, Narsee Monjee, IIM Kozhikode, ISB, and Great Lakes.

The GMAT is also the preferred option for top MBA programs at prime institutes such as ISB, IIM PGPX, MDI, XLRI, and many more that do require students to have work experience.

Let’s start by understanding the two tests from three perspectives.

1. Structure, format, and syllabus
2. Difference between the two tests (GMAT vs CAT)
3. Acceptance by B-schools

Structure, Format, and Syllabus

Both the GMAT and CAT serve as standardized tests and measure skills such as critical thinking, quantitative ability, reasoning skills, and data interpretation to get admission in MBA programs. However, let us explore how both exams are different in their structure.

The test duration is 2 hours and 15 minutes without breaks. All the questions in the GMAT Quantitative and GMAT Verbal sections are multiple-choice questions. In the Data Insights section, you need to interpret the data to get to the answer. 

Learn more about the GMAT syllabus.

*Remember that this keeps changing from year to year!

The duration of the test is 3 hours. CAT questions come in two flavors – Multiple Choice Questions (MCQs) and ‘Type in the Answer’ (TITA) questions.

DI questions on the CAT are somewhat similar to IR questions on the GMAT.

Difference Between the Two Tests (GMAT vs CAT)

After learning the difference in the exam pattern, let’s dive in to know the scope of acceptability, eligibility criteria to take the exams, leading business schools accepting the exams, structure, and much more.

GMAT Score for IIM

Score Validity 

From the date of your test, your GMAT score is valid for 5 years. This is because GMAC believes your reasoning skills and abilities would not diminish appreciably over a 5 year period. Business schools, on the other hand, may have their own policies regarding the score that they accept. Before you apply, double-check with your desired institution. 

CAT scores, on the other hand, are only valid for one year from the date of the test. In addition, if you do not pass the exam the first time, you will have to wait a year to take it again.

Eligibility And Attempts 

The GMAT is open to anybody above the age of 18. If you’re under the age of 18, i.e. 13-18 years old, you can take the GMAT with parental permission. 

The GMAT can be taken up to five times per year. A minimum of 16 days should pass between any tries. There is an overall lifetime restriction of eight attempts. 

The CAT is only offered once a year, on a date set by the convening IIM. Every year in July or August, the convening IIM announces the date of the CAT. 

There is no limit to how many times you can take the CAT, and there is no upper age limit. To take the CAT, you must have a bachelor’s degree or its equivalent from a recognized institution. Students in the last year of their degree programs are also eligible to take the CAT.

Exam Fees and Average Salaries 

The GMAT registration fee is $275. After creating and registering an account on mba.com, you may schedule and book an appointment. 

The CAT registration and exam fee is INR 2000/-. In the months of July and August, the convening IIM issues a notification. This notification contains information on registration dates, exam fees, and other relevant data. Because the CAT is not given on a demand basis, you must adhere to the registration deadlines.

The average that IIM graduates could probably earn is between the range of INR 22-25 lakhs on average. INR 82 lakhs is the highest international offer made to an IIM graduate. The average income offered to graduates of the top 25 MBA institutions in the world, on the other hand, is much higher, at INR 1.05 crore.

GMAT VS CAT – Syllabus 

Now that we have understood how both exams are different in terms of structure, pattern, and acceptance. Are these exams different in terms of syllabus also?

The most significant difference in the syllabus is that there is no Analytical Writing Assessment (AWA) part in the CAT. Apart from the AWA section, let’s take a look:

Is the CAT and GMAT syllabus the same?

Now, let’s talk about the section-wise comparison of both the exams

GMAT VS CAT – Verbal Syllabus

GMAT VS CAT – Quant Syllabus

GMAT VS CAT – Adaptive VS Non-Adaptive 

The GMAT is a computerised adaptive test. This means that the difficulty level of the following question is determined by how well you did on the previous one. As a result, the GMAT is a test of ability since it adapts and refines the test to your level of skill. The test begins with a question of medium difficulty; if you properly answer this question, the next question is somewhat more difficult. As a result, there is no way to go back and examine your answers or skip a question.

The CAT, on the other hand, is a non-adaptive test that emphasises accuracy over ability. Since in the CAT, only percentile scores are published, your score depends purely on how many questions you answered correctly. Before submitting your answers, you can evaluate them in a section. There’s also an on-screen calculator.

What Factors to Consider in Choosing GMAT and CAT?

Career Goals 

Aside from the 20 IIMs, more than 100 other B schools across India accept CAT results for graduate management admission. CAT scores are also accepted by a few international business institutions for admission to management programs. The GMAT is recognized for admission to over 7000 graduate management programs at over 2,300 graduate business schools across the world. Because of its global acceptance, the GMAT is the logical choice if your career objective is to study abroad and get valuable foreign exposure and professional experience. The GMAT is also becoming more widely accepted as a criterion for admission to executive programs at several of India’s premier business institutions.

Choice of Program 

If you want to apply to any IIM’s conventional 2-year, full-time residential MBA program, you’ll need a valid CAT score. A legitimate GMAT score is accepted if you are contemplating the 1-year full-time executive program. 

Furthermore, because the CAT is administered by the IIMs, it is a better predictor of success in the programs they provide, as it assesses the abilities needed to succeed in the program.

Location Preference 

If you’ve decided to study in a specific geographic region because of the proximity of employers in your target industry, this is a point to consider while choosing between the GMAT and the CAT. If you’re looking for a job in luxury management, France is the ideal place to look. It would be best to earn an MBA at a local B school, as this would put you in close proximity to your target businesses and allow you to participate in internships.

Investment VS Return

Few Key Points to Note for GMAT VS CAT 

• Because the CAT is only given once a year, you will have to wait another year to take it again if you do not meet the cut-off for your desired college/program, but the GMAT can be taken several times with a minimum of 16 days between attempts. 
• The GMAT Enhanced Score Report, which is available for a fee, may provide useful information about your performance. Using your ESR analysis to develop a retake strategy could be quite beneficial. The CAT does not have such a facility. 
• Furthermore, because your GMAT score is valid for five years from the date of your test, the actual cost of the GMAT is $167 per year.

Scholarships – The Added Advantage of GMAT Over CAT 2023

A high GMAT score can help you not only get into a top business school, but it can also help you receive a partial scholarship or a full fellowship. These can significantly reduce the cost of an MBA. Top management schools are increasingly offering scholarships, fellowships, and other forms of financial aid to offset the rising cost of an MBA.

Scholarship Based on CAT Score

While most IIMs provide some type of need-based financial aid, it is in the form of loans rather than scholarships. Students can also apply for scholarships granted by businesses and private organizations.

Takeaways – How to Choose Between GMAT VS CAT?

The following characteristics should assist you in picking between the GMAT and the CAT. 

• Make a decision on your career objectives (International Exposure and Work Opportunities vs. Domestic) 
• Program Selection (Executive, Full time 1 year, Full Time 2 years) 
• Preference for a location (India v.s. Abroad) 
• Return vs. Investment (GMAT vs CAT) 
• Scholarships available (GMAT vs CAT)

GMAT VS CAT Difficulty – Level of Competition 

Every year, over 2 lakh applicants take the CAT exam. Candidates must pass the GD, PI, and WAT rounds after passing the CAT Cut Off, which is approximately 99 percentile for the top IIMs. Aside from that, additional considerations such as gender diversity and work experience are taken into account when determining the final merit list. 

In the case of the GMAT, its score is accepted by a number of important national and worldwide institutions. As a result, the GMAT has a higher applicant-to-seat ratio than the CAT, and your projected chance of success (and thus your return on investment) is higher with the GMAT. As a result, when taking the GMAT, the pressure is frequently lower than when taking the CAT.

GMAT VS CAT – Admission Procedure After the Test 

After both exams, there are several stages to getting admission into an MBA program. Following the GMAT, most top colleges and universities need basic essay writing, letter of reference submission, and interviews.

In CAT, on the other hand, you must appear for, Personal Interview, Group Discussion, and Written Ability Test

GMAT VS CAT – Profile Requirements 

• After passing both tests, a candidate’s profile is vital in obtaining an MBA. Work experience is not required for the management programs offered by IIMs. It will, however, offer you an advantage, although it is not required. 
• In addition, IIMs look at your percentages in Class X, Class XII, and your graduation score, which all play a role in selection. To get into an IIM, you’ll need not only a good CAT score but also a strong academic record. 
• Most overseas universities, on the other hand, need at least two years of job experience. In most cases, your grades in classes X and XII are not taken into consideration.

GMAT VS CAT – Choice Of Institutions 

IIMs and other B Schools accept the CAT score. Applicants must keep in mind that the CAT is mostly focused on Indian schooling. As a result, if students want to get into one of India’s B Schools, they should take the CAT exam. 

GMAT scores are accepted by Indian and international business schools. To put it another way, a candidate has more possibilities. The fact that the number of B Schools is growing does not imply that the quality is deteriorating. The B quality, School’s on the other hand, is improving. GMAT results are accepted by top B schools such as Harvard Business School, Wharton, and Stanford, boosting to their value.

Difference Between CAT and GMAT Exam: Ease Of Admissions 

Admission to the college of one’s choosing is difficult when it comes to the CAT. Only a small percentage of candidates are accepted into the institutions of their choice. Because there are so many candidates and so few seats, the Indian government has opened a number of IIMSs across the country in recent years. 

When it comes to the GMAT, makes it much easier for applicants to get into the college of their choosing. The key reason for this is that GMAT results are accepted by B Schools all over the world. Furthermore, IIMs have begun to accept GMAT results. When it comes to the GMAT, applicants have additional possibilities because B Schools are located all over the world.

Top Colleges in India Offering MBA

Difference Between CAT and GMAT: Number of Applicants 

It has been observed that the number of applications for both tests has been steadily increasing over the last few years. For both tests, the result is nearly identical. This makes it more difficult for a student to get into their preferred college in the CAT because the number of colleges is substantially lesser than in the GMAT. It’s simple: there are more students competing for fewer spots. 

The applicant’s decision on which examination to take is entirely his or her own. It is dependent on the applicant’s circumstances. GMAT is suitable for individuals who are currently employed, whilst CAT is suitable for those who wish to pursue their MBA in India immediately after completing their bachelor’s degree.