Mumbai, India, June 2, 2020- COVID-19 pandemic
has severely affected the financial health of salaried and professional
individuals in India. This revelation came into light from a recent survey conducted by IndiaLends, a digital lending platform. 82% of respondents saying that they are struggling to make ends meet.
has severely affected the financial health of salaried and professional
individuals in India. This revelation came into light from a recent survey conducted by IndiaLends, a digital lending platform. 82% of respondents saying that they are struggling to make ends meet.
 |
| Infographhic: IndiaLends survey |
The nationwide survey of nearly 5,000
respondents threw up no surprises: 94% said they would have to be extra careful
about how they spend their money in the next few months; 84% said they were
cutting back on spending; and 90% expressed concern about their savings and
financial future.
respondents threw up no surprises: 94% said they would have to be extra careful
about how they spend their money in the next few months; 84% said they were
cutting back on spending; and 90% expressed concern about their savings and
financial future.
Significantly, the survey also revealed that
the respondents would not be averse to taking a loan to tide over the present
crisis — nearly 72% said they would opt for a personal loan in the immediate
future to meet high-priority expenses such as debt repayment,
essentials and medical, education fees, and home repairs
and renovation. As per IndiaLends data, 71% of its customers
had existing loans out of which 45% had applied for a
moratorium due to their inability to repay their debts.
the respondents would not be averse to taking a loan to tide over the present
crisis — nearly 72% said they would opt for a personal loan in the immediate
future to meet high-priority expenses such as debt repayment,
essentials and medical, education fees, and home repairs
and renovation. As per IndiaLends data, 71% of its customers
had existing loans out of which 45% had applied for a
moratorium due to their inability to repay their debts.
IndiaLends Founder and CEO Gaurav Chopra said,
“The pandemic has changed the way we all function, affecting our
physical, mental, emotional and financial wellbeing. Salaried individuals
and professionals, in particular, are coping with the potential burden of
job losses and pay-cuts. The impact on their income and savings has seen a growth
in demand for retail loans. In these circumstances when finances are stretched
and assets are not easily accessible, it is important for individuals to
examine their financing options — such as personal loan or line of credit — and
plan accordingly for the weeks and months ahead. To alleviate hardships of
borrowers, we are making the application process easier and convenient, and
ensuring quick disbursal of loans through a touch-less and contact-less
system.
“The pandemic has changed the way we all function, affecting our
physical, mental, emotional and financial wellbeing. Salaried individuals
and professionals, in particular, are coping with the potential burden of
job losses and pay-cuts. The impact on their income and savings has seen a growth
in demand for retail loans. In these circumstances when finances are stretched
and assets are not easily accessible, it is important for individuals to
examine their financing options — such as personal loan or line of credit — and
plan accordingly for the weeks and months ahead. To alleviate hardships of
borrowers, we are making the application process easier and convenient, and
ensuring quick disbursal of loans through a touch-less and contact-less
system.
According to the IndiaLends survey, the
economic uncertainty and the state of individual finances has also impacted
investment with 76% of the respondents said they are in no position
to consider fresh investments at this time.
economic uncertainty and the state of individual finances has also impacted
investment with 76% of the respondents said they are in no position
to consider fresh investments at this time.
FUTURE OF EXPENSES
|
How will your
expenses in the following categories be impacted post COVID19? |
Increase
|
Decrease
|
Will remain
unchanged |
|
Essentials
|
40%
|
27%
|
28%
|
|
Apparel and
accessories |
17%
|
63%
|
16%
|
|
Travel/ holiday
|
9%
|
76%
|
11%
|
|
Entertainment
(out of home) |
12%
|
73%
|
11%
|
|
Travel
|
10%
|
75%
|
11%
|
|
Luxury goods
purchase |
10%
|
75%
|
11%
|
|
Furnishing and
durables |
12%
|
68%
|
15%
|
|
Vehicle
purchases |
11%
|
70%
|
14%
|
|
Home rental
|
25%
|
33%
|
37%
|
As evident from the table above, 40% of
respondents said their focus on expenses for essential items would
increase, while over 70% said they would spend less on non-essentials
including entertainment, luxury and lifestyle in the post-COVID period.
respondents said their focus on expenses for essential items would
increase, while over 70% said they would spend less on non-essentials
including entertainment, luxury and lifestyle in the post-COVID period.
