The COVID-19 pandemic has severely affected the financial health of professional individuals in India. A survey shows that over 82% are struggling to make ends meet.
The survey shows 94% are being extra careful over-spending their money
Online lender IndiaLends surveyed over 5,000 salaried individuals. It stated that 94% of people are being extra careful about spending their money in the next few months. About 84% said they were cutting back on spending. 90% expressed concern about their savings and financial future, reports Priyanka Pani in IBS Intelligence.
The survey also revealed that 72 % of respondents would soon opt for a personal loan to meet high-priority expenses such as debt repayment, essentials and medical, education fees, home repairs, and renovation. 71% of its customers had existing loans out of which 45% had applied for a moratorium, as they couldn’t repay their debts.
Gaurav Chopra, Founder, and CEO, IndiaLends, 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.”
The economic situation has also impacted investments
Chopra added that people must examine their financing options such as a personal loan or line of credit and plan accordingly for the weeks and months ahead. To ease the borrowers’ hardships, the digital lender is making the application process easier and convenient, ensuring quick disbursal of loans through a touch-less and contact-less system.
Over 76% of the respondents said they are in no position to consider fresh investments at this time. Over 40% of the respondents felt that their focus on expenses for essential items would increase in the future. 70% said they would spend less on non-essentials (like entertainment, luxury, etc) after in the COVID-19 period.