Covid-19: Only 17% Indians Able to Make Ends Meet Amidst Mass Layoffs and Pay-Cuts
As per a survey by IndiaLends, 72% respondents said they will take a personal loan to tide over financial crisis caused by covid-19
Covid-19 and the ensuing lockdown has put financial health of majority Indian households on shaky ground. Over 82 per cent of the 5,000 respondents to a survey conducted by online financial services marketplace IndiaLends said they are struggling to make ends meet.
Mass layoffs and pay-cuts across industries have hit the salaried class hard, while tumbling revenues of businesses have put a strain on personal finances of small business professionals. Such is their plight that nearly 72 per cent respondents said they would opt for a personal loan in the immediate future to meet high-priority expenses, such as debt repayment, essentials, medical needs, education fees and home repairs and renovation.
“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,” said Gaurav Chopra, Founder and CEO, IndiaLends.
Looming uncertainty over future income and loan repayment taking precedence over savings has impacted investments of many, shows the survey. About 76 per cent said they will refrain from making fresh investments, whereas a whopping 90 per cent reported feeling concerned about their savings and financial future.
Clearly, people will be wary of spending in the coming months with 94 per cent reporting that they would have to be extra careful about how they spend their money.
As expected, the survey findings show that majority will cut back on non-essential spends, including travel, luxury and out-of-home entertainment, among other things.
About 40 per cent expect an increase in spending on essential items in the coming months, whereas 25 per cent think their home rental may rise, perhaps in line with annual revisions. Very few expressed willingness to buy a new vehicle in immediate future.