The recent report says few lesser than half of the Indian population solely depended on the borrowed money to meet the ends. The report says almost 46% of Indians depended upon the borrowed money to run their households in this the ongoing COVID-19 pandemic period.
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The report by Home Credit India says the lower middle-income group has been severely affected by the job losses and pay cuts across industries, lockdown and also the pandemic has led to a shift in view towards the loans and borrowing as the preferences to run the hosueholds. Home Credit India is a local functionary of the international consumer finance provider with operations spreading over Europe and Asia. 1,000 respondents across seven cities where surveyed for the analysis to understand the borrowing patterns of people during the coronavirus-induced lockdown, the report said. The Primary reason cited for the borrowing is pay cut or job loss and the second reason is to pay the EMI of previous loans.
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14% borrowed due to job loss and 27% for the repayment of loans. The people borrow money from family and friends and in 23% of the family was led by male members. The preference is because it gives flexibility in time to repay. 50% of respondents wish to return the borrowed money once they return to jobs or situation normalizes and 13% said they will return after loan repayment.
