A recent survey conducted by popular digital lending platform, IndiaLends, has revealed that the ongoing coronavirus pandemic has left as much as 82 per cent on Indians in severely affected financial health. This holds especially true for salaried and professional individuals who are highly dependent upon their monthly earnings.
The survey also revealed that as many as 84 per cent people said that they were cutting back on their expenses, while about 94 per cent people said that they would have to tread with extra caution when it comes to expenditure for the next few months. In addition to this, about 90 per cent expressed their concerns about their financial future, particularly their savings.
The nationwide survey, which had participation from nearly 5,000 people, also found that the respondents were not averse to seek financial help from banks in the form of loans in order to tide over the Covid-19 crisis. About 72 per cent expressed their willingness to opt for a personal loan in the immediate future to meet urgent expenses such as education fees, home repairs, renovation, medical bills, and debt repayment.
The data collected by IndiaLends also revealed that as many as 71 per cent of its customers had ongoing loans, out of which 45 per cent had availed moratorium due to their inability to repay the debt during Covid-19 crisis. Investment has also been impacted by the financial unrest caused by the Covid-19 crisis. 76 per cent of the survey respondents said that they were in no position to consider fresh investments at this point of time.
The survey also revealed that about 40 per cent of the respondents said that the focus on expenditure is going to increase, especially with respect to essential items. About 70 per cent respondents shared their resolve of spending less on non-essentials. This included entertainment, lifestyle, and luxurious items and services.
According to Gaurav Chopra, Founder and CEO, IndiaLends, the pandemic has changed the way we all function. IT has affected physical, emotional, mental and financial health. He said that salaried individuals and professionals, in particular, are coping with the additional burden that came in the form of Covid-related pay-cuts and job losses. This impact on income and savings has, in turn, increased the demand for retail loans.
Chopra added that in these circumstances when assets are not easily accessible and finances are stretched, it is important for people to closely examine their financing options — whether it is a line of credit or a personal loan — in order to be able to plan wisely and accordingly for the weeks and months to come.