The COVID-19 pandemic has severely affected the financial health of salaried and professional individuals in India with 82% of respondents saying they are struggling to make ends meet, a recent survey by IndiaLends has revealed.
In a nationwide survey of nearly 5,000 respondents, 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 data by digital lending platform IndiaLends, 71% of its customers had existing loans out of which 45% had applied for a moratorium due to inability to repay their debts.
According to the survey, the economic uncertainty and the state of individual finances has also impacted investment with 76% of the respondents saying they are in no position to consider fresh investments at this time.
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.
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.”
IndiaLends is an online marketplace for credit products, insurance and offers free credit reports.