Majority of Indians willing to take personal loans to tide over COVID-19 crisis: Survey

Nearly 82 per cent of Indians believe that disruptions caused by the COVID-19 pandemic have severely impacted their financial condition and a majority of them will now have to go for personal loans to meet their cash requirement, a survey showed.

The findings are based on responses from 5,000 people to a survey conducted by IndiaLends, a digital lending platform.

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"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," according to the survey.

The respondents said they are not averse to taking a loan to tide over the present crisis.

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Around 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, the findings showed.

"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," IndiaLends founder and CEO Gaurav Chopra said.

Almost 95 per cent of the respondents said they would have to be extra careful about their spending habits over the next few months and 84 per cent said they were cutting back on spending.

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Close to 90 per cent expressed concern about their savings and financial future.

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

About 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, according to the survey.