Majority of professionals, salaried individuals worried about financial future: Survey

A survey by digital lending platform IndiaLends, which polled 5,000 respondents across India, revealed that 94 per cent of individuals said they have to be extra careful about their spending in next few months.

The pandemic has severely affected the financial health of salaried and professional individuals with 82 per cent of respondents saying they are struggling to make ends meet, IndiaLends said.

While 84 per cent said they were cutting back on spending, 90 per cent expressed concerns about their savings and financial future.

Respondents also said that they 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 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... 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, Chopra said.

He said the company is making the application process easier and convenient, and ensuring quick disbursal of loans through a touch-less and contact-less system in order to alleviate hardships of borrowers.

According to the IndiaLends survey, the economic uncertainty and the state of individual finances has also impacted investment with 76 per cent of the respondents said they are in no position to consider fresh investments at this time.