GMAT vs CAT: Decoding the key differences!

Pursuing MBA from a good institution is a dream to many, but a dilemma occurs in selecting which entrance exam will be more appropriate; GMAT or CAT.The evaluating procedure of both these examinations is based on aptitude level of the candidate. The exam structure and marking scheme of these examinations have reportedly marked contrasts, resulting from different mindsets behind developing both the exams. 

Mainly regarded as major entrance exams for graduates or working professionals looking to pursue an MBA from India or Abroad, GMAT vs CAT also displays very different “standardized learning approaches” to measure an applicant’s analytical abilities. The forces behind both these examinations examined the correct way to design these aptitude examinations in order to meet the candidate as well as the b-school's expectations. Candidates who have the ability, knowledge, vision to think and solve real time business scenarios are deemed to be the ones who have the potential to clear these challenging tests and make it to the best b-schools of all times. 

If you want to stand out in the business world and transcend your status quo into a reputed MBA college, you must know all about GMAT vs CAT! This article will guide you how to clear the air in your mind regarding the same and steer you in the right direction for the future. Read on to find the intricate details of GMAT vs CAT and what student crowd does each one of them attract.

GMAT vs CAT: Who can pursue it?

To begin with, it is mandatory that you understand that GMAT is a standardized international MBA exam which is targeted mostly by students willing to acquire international education. When we talk about students planning to take management entrance exams, it is understood that not all of them hail from a homogenous background. Any MBA/Management Aspirant can be divided into the following groups.

1. Pre-Final or Final Year College Student

   Even though every person with a graduate degree is eligible for both these examinations, majority of GMAT or CAT applicants hail from college background. This is because preparation for CAT and preparation for GMAT require their own sweet time (at least 9-12 months) and candidates pursuing degree programs like B.E, B.Sc. and B.Com take it up as an additive along with their current studies. 

   This also helps students to prepare in a more efficient manner as some of the subjects in their course like Mathematics or Accounting eliminates their stress of preparing for quantitative ability. Such candidates can also take up coaching programs on the weekends due to availability of time and no loss of income. If a candidate decides to take up the GMAT exam in the pre-final year or final year, he/she would have 4-5 years in hand to gain work experience before pursuing MBA as per GMAT eligibility criteria. 

   Although this is not true for aspirants who take up CAT, taking up either of these entrance examinations while you are in college proves to be beneficial to you in many ways. A high GMAT score or CAT score that you can achieve while studying in college can compensate well for lack of work experience.

    

• Aspiring to study abroad only:Students with an immense thirst of knowledge and innate desire to explore the world, experience diverse cultures and gain cross cultural communication skills to stand out from other candidates are the ones who should take on GMAT. It helps learn about things which are different from what they know and understand and enable them to respond in quickly evolving markets, which is a benefit for recruiters.
• Aspiring to study in India only: If you fear losing contact with your familiar environment or not being able to keep up with your studies, you should not choose an MBA abroad. Though extremely beneficial, sometimes it does come with a little bit of risk and cost. Indian b-schools, no matter how expensive, are still much less expensive than b-schools abroad. Staying abroad means that you need to take up a job to support your livelihood. The constant busy schedule a student faces can make him/her exceptionally home sick.
  Reason being you might not be able to meet your parents frequently due to your hectic study and work schedule which can be quite disheartening to some. Students banking on this option should take CAT and work hard to score well in it so that they can stay back in their home country. This will help them earn exceptionally well and at the same time, stay close to their roots.
• Open to both the options - India and Abroad: These types of candidates are flexible and adjustable in nature. They do not put their eggs in the same basket but instead explore different career opportunities. These types of candidates should give both the exams to begin with and then narrow down their options with respect to the scores received in each examination.

1. 2.Fresher (0-24 months):

    Candidates who have at least some sort of industry experience should take up the CAT exam instead of GMAT in our opinion. You can get into top IIMs with a high CAT percentile and an MBA from IIM tends to have a higher ROI than any other college. A good CAT score will also help you avail of the stellar placements offers of IIM ranging from 12-30 lakhs per annum. When it comes to international b-schools, they mostly consider your professional maturity and career trajectory to be a very important aspect of admission. 

   Sure, it depends from school to school. Harvard Business School is one such coveted institution that accepts freshers (people with 0-2 years of work experience) based on their GMAT score for their “2+2 program”. A similar exception can be ISB Hyderabad where you will find cohorts who would be either fresher or having experience of fewer than 2 years. Needless to say, there are a number of other international b-schools which support the application of similar candidates for admission into their MBA programs. 

   But to balance out the lack of experience in your CV, a fresher need to be on board with a good GMAT score, an effective GMAT video essay that explains the reason for not continuing with your present job and in some cases, LORs (letter of recommendations) from your immediate supervisors stating your determination and grit as a sincere working professional.

• Aspiring to study abroad only Students with an immense thirst of knowledge and innate desire to explore the world, experience diverse cultures and gain cross cultural communication skills to stand out from other candidates are the ones who should take on GMAT. It helps learn about things which are different from what they know and understand and enable them to respond in quickly evolving markets, which is a benefit for recruiters.
• Aspiring to study in India only: If Candidates who have just started their careers as working professionals and want to pursue a management degree to add credibility to the same job should take up the CAT exam and study MBA within the country. This will help them stay close to their cohorts at work and gain internship/freelancing opportunities as a manager while pursuing MBA.
• Open to both the options - India and Abroad: Such candidates are dead serious about pursuing an MBA, even after having a job at hand. They would not do all that it takes to get into a “good university” and gain valuable education as an MBA student.

1. Fresher (0-24 months):

   Taking up GMAT after 2-3 years of working as a professional is a better-suited option than taking CAT. GMAT exam can help you not only get into the premier MBA colleges abroad but also in India. The average work experience in GMAT accepting colleges like ISB Hyderabad, GreatLakes Chennai, etc is between 24-36 months. You can easily get admission to these colleges through GMAT which will help you get a big increment in the current salary package.

   CAT, on the other hand, confines your study plan to Indian Schools only. However, as a full-time working professional, it can get extremely taxing to prepare for a management entrance exam. If we relatively compare these exams based on LOD (level of difficulty), GMAT is easier than CAT. full-time working professionals will find it much harder to cope with CAT rather than GMAT.

• Aspiring to study abroad only: Candidates who have just started their careers as working professionals and want to pursue a management degree to add credibility to the same job should take up the CAT exam and study MBA within the country. This will help them stay close to their cohorts at work and gain internship/freelancing opportunities as a manager while pursuing MBA.
• Aspiring to study in India only: Candidates who have acquired experience of 2 or more years and have an excellent academic record should aim for CAT. The reason being the top b-schools in India highly prioritize working professionals with some amount of work experience. They have a higher chance of getting shortlisted (about 10-15%) more than candidates who are freshers and lack experience.
• Open to both the options - India and Abroad: Candidates who know the management world properly and understand how to accelerate in their career usually are open to multiple opportunities related to MBA. That is because no matter where the candidate might be working, he/she understands the core significance of an MBA degree from both Indian and International universities.

1. Candidates with above 60 months of work experience: If you are an experienced working professional with 5 or more years of work experience, choose GMAT over CAT any day. Now that you have gained professional expertise in 5 years, you are capable of understanding what is more suitable for you; GMAT or CAT. In such situations, GMAT bodes better than CAT.

   GMAT helps you widen your world vision as it qualifies you to pursue post-graduation from world-renowned universities. As you already are familiar with how to work under pressure and meet your deadlines, you can frame an effective GMAT preparation strategy. You can easily pay a registration fee of $250 without running into an argument with your parents, as you are earning handsomely.

    

   Even though both GMAT and CAT have their advantages, it is better to go global at this stage of your life. Your decision to pursue GMAT or CAT should also depend on where you see yourself in the next 5 years; whether as a manager/director in Google or Amazon or investment financier in New York. Such stalwart jobs can only be accessible if a person takes the GMAT exam. A working professional with 5 years of experience, with a 100% preparedness level for GMAT, can get into whichever university they want.

• Aspiring to study abroad only:

  Candidates having an average or Poor academic record but five years of experience under their belt should definitely choose GMAT over CAT. The reason is twofold; CAT accepting colleges consider the academic background of the candidate during the selection process along with the strenuous procedure of CAT percentile normalization procedure. 

  However, if you scored a 55% In your graduation but have been working with a reputed company for 5 years and also was able to achieve a good GMAT score (within the range of 700-750), you can easily make your way to the top ivy league institutions like Stanford, Wharton, INSEAD, etc. through your GMAT scores and work experience factor.

• Aspiring to study in India only:Candidates who have acquired experience of 2 or more years and have an excellent academic record should aim for CAT. The reason being the top b-schools in India highly prioritize working professionals with some amount of work experience. They have a higher chance of getting shortlisted (about 10-15%) more than candidates who are freshers and lack experience.
• Candidates with above 60 months of work experience:

  If you are an experienced working professional with 5 or more years of work experience, choose GMAT over CAT any day. Now that you have gained professional expertise in 5 years, you are capable of understanding what is more suitable for you; GMAT or CAT. In such situations, GMAT bodes better than CAT. 

  GMAT helps you widen your world vision as it qualifies you to pursue post-graduation from world-renowned universities. As you already are familiar with how to work under pressure and meet your deadlines, you can frame an effective GMAT preparation strategy. You can easily pay a registration fee of $250 without running into an argument with your parents, as you are earning handsomely. 

  Even though both GMAT and CAT have their advantages, it is better to go global at this stage of your life. Your decision to pursue GMAT or CAT should also depend on where you see yourself in the next 5 years; whether as a manager/director in Google or Amazon or investment financier in New York. Such stalwart jobs can only be accessible if a person takes the GMAT exam. A working professional with 5 years of experience, with a 100% preparedness level for GMAT, can get into whichever university they want.

What is a computer adaptive test?

CAT or Computer Adaptive Test is a recent innovation that has been made in the organizations conducting entrance exams. This type of testing is tailored to the candidate's knowledge base and adapts to the response given by the candidate to record his/her accurate performance. If you begin a computer adaptive test with a question of moderate level difficulty and answer it correctly, the next question displayed on your computer screen will be of slightly higher difficulty.

If you happened to answer the first question incorrectly, the following question will relatively be simpler. Many studies reveal the fact that a candidate’s ability determines the difficulty level of the question. It also means that a candidate’s caliber can be measured with the help of questions he/she knows how to solve. This is because simple questions are poor measures of high scorers and vice versa. GMAT (Graduate Management Admission Test) is an example of computer adaptive test. Other examples can be GRE etc.

GMAT's computer adaptiveness can be best understood with the help of the following graph.

Source: gogmat.com (link source)

On the graph:

• Square: right answers
• Circles wrong answers

As evident from the graph, every right answer enhances the complexity of the question while every wrong one results in a simpler question.

GMAT vs CAT: Main Differences

CAT and GMAT are two of the most popular management entrance examinations which can be the gateway to world-renowned B-Schools and a prestigious list of IIMs (Indian Institute of Management). While CAT is an entry route to top-a-listed b-schools in the country, GMAT has a predominant recognition around the globe and the scores of the same are accepted by some of the top-notch management and research institutes. Here are the key aspects where GMAT and CAT are different.

1. 1. Format and duration/length of the exam: GMAT Exam and CAT Exam are quite different in terms of the basic exam patterns as well as syllabus. Here are some key points related to GMAT as well as CAT syllabus:

GMAT Exam Pattern: The GMAT Exam consists of 4 sections, all of which have their own sectional time limit. These 4 sections are:

• Analytical Writing Assessment: This section consists of 1 analysis of an argument essay question that a candidate has to answer within 30 minutes. It is a non-adaptive section and scores for this section range from 0-6 in half point intervals. AWA section is scored separately and the scores are not included in the final GMAT score out of 800.
• Integrated Reasoning: This section consists of 12 questions a candidate needs to answer within 30 minutes. It is a non-adaptive section and the scores of this section range from 1-8 in single digit intervals. This section is also scored separately and scores are not included in the final GMAT score out of 800.
• Quantitative Reasoning: This section is one of the most important sections of GMAT. It consists of 31 questions a candidate has to answer in 62 minutes. This section is computer adaptive and the marks are included in the official GMAT score.
• Verbal Reasoning: This section consists of 36 questions that need to be completed in 65 minutes. This section is computer adaptive and tests your verbal ability. The marks are included in the official GMAT score.

CAT Exam Pattern: The CAT Exam is held in an online CBT (Computer Based Test) mode and consists of three sections namely Verbal Ability and Reading Comprehension (VARC), Data Interpretation and Logical Reasoning (DILR) and the Quantitative Aptitude (QA). Each section is made up of different number of questions and different allotted time duration. Here is the section wise distribution of CAT exam.

• Verbal Ability and Reading Comprehension: This section is made up of two parts I.e verbal ability and reading comprehension. Reading comprehension is a dominant section and questions are usually 24 (70% of the section) in number and verbal ability questions range from 8-10 (30% of the section. A student has to answer 34 questions in 60 minutes.

Learn about how to improve performance and enhance accuracy the right way by clicking here.

• Data Interpretation and Logical Reasoning: The section has two equal parts in the form of Data Interpretation and Logical Reasoning. Both these subsections constitute half of the DILR section. Logical Reasoning questions are 16 in number and Data Interpretation questions are 16 in number. In totality, the DILR section consists of 32 questions that need to be completed in 60 minutes.
• Quantitative Aptitude: The Quantitative Aptitude section is basically a Mathematics section that consists of 34 questions (MCQ + Non MCQ) that a candidate needs to answer within 60 minutes.

GMAT vs CAT Exam Pattern: Comparison

1. 2. Eligibility and number of permissible attempts: CAT and GMAT are completely unique in this context. Here is the information related to eligibility and number of permissible attempts in a lifetime of both the exams:

GMAT Eligibility Criteria and number of permissible attempts

• If you are 18 and above, you are eligible to undergo GMAT on an individual note. 
• If you are a minor and your age ranges between 13-17 years, you can still take the examination on account of parental permission.
• You can attempt the entrance test up to 5 times in one year and in case you are unfortunately unsuccessful in your maiden attempt, you can take the test again after 16 days.
• In your entire lifetime, you can take GMAT up to 8 times.
• GMAC, the test administrator of GMAT, doesn’t rely on any government mandated system for admission of candidates.

CAT Eligibility Criteria and number of permissible attempts

• It can be taken only once every year and, on a date, specified by the concerned body responsible for it I.e., IIM.
• There is no set bar on the number of attempts you take or upper age limit of a candidate.
• The minimum requirements of CAT are that a candidate should be having a bachelor's degree from a recognized institution or its equivalent.
• Students in their final year can also appear for the test.
• Candidates should have scored at least 50% (general category) and 45% (SC/ST) to sit for the CAT exam.
• IIMs follow a government mandated reservation system which is a reason most people do not get good colleges at high percentiles.
• CAT Registration is not valid after the CAT exam.

1. 3. Score Validity and Acceptance by colleges: Each year, roughly 2 lakh candidates take the exam and dream about getting into the top 6 IIMs of the country, which has around 5000 seats. While the CAT Exam Score is accepted by most of the top colleges in India, the GMAT Score is valid for over 2300 colleges and 7000 MBA programs across the world. In addition to this, the CAT Score is only valid for 1 year while the GMAT Score can be used for 5 Years. Thus, in terms of Validity and Reach, the GMAT Exam outstrips the CAT Exam by a huge margin. As for the CAT exam, the validity exhausts within 1 year of its commencement. For example, if you have appeared for CAT 2019, your scores can only be valid for applying for programs in 2020, which is why it is a bit less feasible to take CAT in comparison to GMAT. Some key points regarding the score validity and acceptance of CAT and GMAT by colleges is as follows:

• CAT scores are accepted by approximately 200 Indian b-schools and 20 international b-schools including SKEMA Business School, Singapore Management University, Audencia Business School, HEC Paris etc whereas GMAT covers the whole ivy league school range (8 top b-schools' schools in the US) and 2292 other b-schools of the world.

Also read: Top 10 MIM colleges in Europe

• CAT scores are valid for 1 year whereas GMAT scores are valid for five.
• More than 100 b-schools in India accept GMAT scores for admission into post graduate programs.
• GMAT Scores are also valid for top MIM (Master in Management) programs in Europe and other continents. CAT scores are not valid for the same.

• Some international b-schools consider GRE scores valid and convert them into GMAT scores for admission. However, colleges accepting CAT scores may support other entrance examinations like NMAT or XAT but do not convert the CAT score into an NMAT score or XAT Score.

Score validity and acceptance by colleges: Comparison

1. 4. In terms of cost, the CAT Exam is far more affordable for Indian Candidates than the GMAT Exam. The GMAT Exam registration fee is around Rs. 18,000 compared to around Rs. 1900 for the CAT Exam. In this term, the CAT Exam is far more attractive to some students compared to the GMAT Exam. Only the most confident candidate would be willing to invest in the GMAT Exam. Here are some key points related to GMAT as well as CAT exam fees:

• The registration fee for GMAT is 250 USD, whereas the registration fee for CAT is 1900.

• GMAT exam rescheduling (1-14 days before the date) will cost you an additional 150 USD, whereas CAT cannot be rescheduled 1-14 days prior to the test date.

• GMAT exam rescheduling (15-60 days prior to the test date) will cost you an additional 100 USD, whereas CAT cannot be rescheduled 15-60 days prior to the test date.

• GMAT exam rescheduling more than 60 days before the exam date will cost only 50 USD, whereas this provision is not available during the CAT exam.

• GMAT attempt can be cancelled with some late charges before the test date but the same provision is not granted in CAT exam.

• Once you register for CAT, you cannot cancel it. However, you can choose not to appear for it. In any case, no refund will be generated.

1. 5. Syllabus (Topic and Subtopic level): GMAT Syllabus: The GMAT Exam consists of 4 sections, all of which have their own sectional time limit. These 4 sections are:

• Analytical Writing Assessment: The AWA section consists of a short argument that has to be analyzed and broken down by the candidate. It tests the logical reasoning capability of the candidate as well as their skill in written communication.
• Integrated Reasoning: This section consists of several different graphs, charts and word problems which tests the candidate on his ability to analyze and understand data provided in several different formats.
• Quantitative Reasoning: This section consists of two basic types of questions: data sufficiency and problem solving. It tests the mathematical ability of the candidate.
• Verbal Reasoning: It consists of Reading Comprehension, Sentence Correction and Critical Reasoning type of questions. It tests the English language proficiency of the candidate.

CAT Syllabus: The CAT Exam consists of three sections namely Verbal Ability and Reading Comprehension (VARC), Data Interpretation and Logical Reasoning (DILR) and the Quantitative Aptitude (QA). Each section in the CAT Syllabus tests the candidates on different criteria.

• Verbal Ability and Reading Comprehension: As the name indicates, this section has two primary components in the form of Reading Comprehension and Verbal Ability. The Reading Comprehension includes 4-5 passages that have several questions that the candidate must answer after reading the passage.
• Data Interpretation and Logical Reasoning: The section has two equal parts in the form of Data Interpretation and Logical Reasoning. The Data Interpretation section consists of data given in tabular or graphical form. Based on this data, the question given must be answered. The Logical Reasoning section also consists of data given, generally in the form of word problems.
• Quantitative Aptitude: The Quantitative Aptitude section is basically a Mathematics section based on topics that candidates would learn by the 10th Grade. It tests the basic Mathematical Ability of the candidate.

GMAT vs CAT: What after the exam?

The CAT Exam and GMAT Exam have somewhat different Post-Exam Procedures. While the post-exam procedures for each college is different, there are some common procedures that almost all colleges, which accept CAT Scores, follow. 

CAT Exam: The most probable rounds for a CAT aspirant are the Group Discussion, Written Assessment and Personal Interview. Read more

For most colleges accepting the GMAT Score, particularly foreign colleges, the most probable post-GMAT Procedures are SOPs (Statement of Purposes)/Essays and Personal Interviews, keeping in mind the application deadline of the universities.

GMAT Versus CAT: Key Statistics to Consider

There are some key parameters which distinguish GMAT and CAT from one another and also states why candidates appear for these exams separately. Given below are those parameters for you to consider: