A recent survey by IndiaLends, a digital lending platform, has revealed that the pandemic has severely affected the financial health of salaried and professional individuals with 82% of respondents saying they are struggling to make ends meet.
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. Nearly 78 % of Bangaloreans said that they will decrease their spends on apparels & luxury goods.
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.
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 loans 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 have 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|
|Apparel and accessories||17%||63%||16%|
|Entertainment (out of home)||12%||73%||11%|
|Luxury goods purchase||10%||75%||11%|
|Furnishing and durables||12%||68%||15%|
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.