Corona Is Driving Majority to Personal Loans

Approximately 82 percent of Indians believe that upheaval caused by the COVID-19 pandemic and the corresponding coronavirus crisis has severely impacted their financial health and a majority of the Indians will now have to avail personal loans to meet their cash requirement, according to a survey showed.

The findings are based on responses from 5,000 respondents to a survey conducted by a leading coronavirus crisisdigital lending platform.

“The pandemic has severely affected the financial health of salaried and professional individuals with 82 percent of respondents saying they are struggling to make ends meet,” according to the survey.

The respondents said they are not averse to taking a loan to sail through the present coronavirus crisis.

About 72 percent 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, the findings showed.

Around 95 percent of the respondents said they would have to be extra careful about their spending habits over the next couple of months and approximately 84 percent said they were cutting back on spending. Close to 90 percent expressed concern about their savings and financial future.

The survey revealed that the economic uncertainty and the state of individual finances have impacted investment with around 76 percent of the respondents said they are in no position to consider fresh investments during the coronavirus crisis.

About 40 percent of respondents said their focus on expenses for essential items would increase, while more than 70 percent said they would spend less on non-essentials including entertainment, luxury, and lifestyle in the coronavirus crisis and the post-COVID period, according to the survey.

Keeping in mind the aggravated after-effects of the coronavirus pandemic, Reserve Bank of India (RBI) has allowed borrows to restructure their personal loan until the end of the year 2020 in addition to certain conditions.

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