82% Indians bear financial brunt of coronavirus pandemic: Survey
It is no secret that the coronavirus pandemic and the nationwide lockdown has severely impacted the financial health of many salaried and professional individuals. A recent survey by IndiaLends, a new-age digital lending platform, found that 82 per cent respondents are struggling to make ends meet.
The nationwide survey of nearly 5,000 respondents found that 94 per cent would have to be extra careful about how they spend their money in the next few months; 84 per cent were cutting back on spending; and 90 per cent expressed concern about their savings and financial future.
Here are more findings from the survey Significantly, the survey revealed that the respondents would not be averse to taking a loan to tide over the present crisis - nearly 72 per cent 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 per cent of its customers had existing loans out of which 45 per cent had applied for the moratorium due to their inability to repay their debts.
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Gaurav Chopra, Founder and CEO, IndiaLends said, "The pandemic has changed the way we all function, affecting our physical, mental, emotional and financial well being. 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."
According to the IndiaLends survey, the economic uncertainty and the state of individual finances has also impacted their investments, with 76 per cent of the respondents saying 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%
Source: IndiaLends
As evident from the table above, 40 per cent of respondents said their focus on expenses for essential items would increase, while over 70 per cent said they would spend less on non-essentials including entertainment, luxury and lifestyle in the post-Covid period.
