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.
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.
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.Â
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.
 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.Â
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.Â
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.
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.
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.
ÂEven 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.
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.Â
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.
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.Â
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.Â
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.
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 candidateâs ability determines the difficulty level of the question. It also means that a candidateâs 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:
As evident from the graph, every right answer enhances the complexity of the question while every wrong one results in a simpler question.
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.
GMAT Exam Pattern: The GMAT Exam consists of 4 sections, all of which have their own sectional time limit. These 4 sections are:
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.
Learn about how to improve performance and enhance accuracy the right way by clicking here.
Parameters | GMAT | CAT |
No. of Questions/ Time limit | 80 Questions in total
|
100 Questions in total
|
Test Duration | 3 Hours and 7 Minutes | 3 Hours |
Adaptiveness | Computer adaptive | Not adaptive |
Score reporting | Absolute score (Out of 800) and percentile score reported | Only Percentile score reported |
GMAT Eligibility Criteria and number of permissible attempts
CAT Eligibility Criteria and number of permissible attempts
CAT Eligibility | GMAT Eligibility |
Number of times you can take CAT in a year: 1 | Number of times you can take GMAT in a year: 5 |
Number of times you can take CAT in a lifetime: Unlimited but you have to appear annually | Number of times you can take GMAT in a lifetime: 8 |
No upper age limits | No upper age limits |
CAT Scores are valid upto 1 year | GMAT scores are valid upto 5 years |
Candidate should score at least 50% in graduation (45% for SC/ST) | No percentage barrier |
A candidate should have pursued graduation from a recognized university. | A candidate can be 18 years old to take GMAT. GMAT can also be taken by students falling in the age group 13-17, with undersigned parental consent. |
Government mandated reservation system | No government mandated reservation system |
Also read: Top 10 MIM colleges in Europe
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
CAT | GMAT |
Scores accepted by approx. 200 domestic and 20 international b-schools. | Scores accepted by 2300 b-schools abroad along with eight ivy league universities like Columbia, Wharton, Stanford etc. |
Valid for 1 year from test date | Valid for five years from test date |
Scores only accepted for MBA/PGP, not MIM | Scores accepted for MBA, PGP and MIM programs |
Non-Convertible into any other exam score | Convertible into GRE score |
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.
CAT | GMAT |
The registration fee for CAT is Rs 1900 I.e 24.57 USD. | The registration fee of GMAT is 250 USD I.e Rs 18316.90 |
CAT exam cannot be rescheduled | GMAT exam can be rescheduled |
CAT exam cannot be cancelled | GMAT exam can be cancelled |
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:
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.
GMAT Syllabus | CAT Syllabus |
1. Analytical Writing Assessment: 1 Essay related to argument analysis. | VARC (Verbal Ability and Reading Comprehension). Topics include: Reading Passages (Informative, Persuasive, Analytical), Para Summary, Odd one out, Para jumbles etc. |
2. Integrated Reasoning. Topics include: Two-part analysis, table analysis, Multi source reasoning, graphics interpretation) |
DILR (Data Interpretation and Logical Reasoning). Topics include linear and circular arrangements, Venn diagram, routes and networking, blood relations, directions, games and tournaments etc. |
3. Quantitative Reasoning. Topics include algebra, geometry, arithmetic etc. | QA (Quantitative Ability). Topics include Number System, algebra, permutation and combination, linear and quadratic equations, profit and loss, arithmetic and geometric progressions, mensuration etc. |
4. Verbal Reasoning. Topics include reading comprehension passages, sentence correction and critical reasoning. |
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.
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:
GMAT | CAT |
GMAT is widely accepted as a prerequisite for most of the global programmes in USA, Europe, Asia Pac and Australia. | Apart from IIMs, CAT Scores are accepted in over 160+ non-IIM Management Institutes |
Each year, approximately 7000-10000 candidates apply for Harvard Business School based on their GMAT scores out of which 900 get selected. Hence the success rate is higher (10-12%) | Each year, approximately 2-3 lakh aspirants take this and out of this, 5000 (total seats in 20 IIMs) make it to IIMs. Hence, the success rate is low (About 2%) |
GMAT is primarily an English language proficiency paper, the same is viewed by the majority of b-schools worldwide. | CAT exam is often considered a math wizard’s domain given its strong focus on test of quantitative ability |
GMAT has always been a computer adaptive test and is administered throughout the year. | Since 2009, the CAT exam has been conducted in a computer-based format. Earlier, it was a pen-paper test. It occurs annually in November. |
CAT scores are accepted for MBA admissions into numbered international institutes, as stated above. | GMAT Scores are accepted for selection to the one-year executive programs by top IIMs. Also, ISB Hyderabad accepts only GMAT score for admission into all of its programmes |
While India’s a-listed b-schools have their own individual CAT sectional and overall cutoff scores, GMAT score accepting colleges follow a unique shortlisting approach. For example, University of Pennsylvania’s Wharton Business School lays stress on the need to have more than 80%ile in the verbal and quantitative sections of GMAT. INSEAD also adopts a similar pattern by accepting applicants who receive at least 75%ile in the verbal and quantitative sections. Apart from GMAT scores, It is mandatory to submit your TOEFL/IELTS score to strengthen your application. |