The Corona Epidemic is affecting the finances of Indians

In Norway, where technology is integrated with banking, free services like help citizens compare different banks

Things seemed to be going India’s way this March. Trade with other countries reached its highest point, with a total of 34 billion dollars being made in sales. The success continued into April, and analyses showed great economic growth after a crushing 2020.

Out of nowhere, however, came the second wave of infection to wreak havoc in the country. From the middle of April to the middle of May, more than 300.000 new people were infected and about four thousand lives were lost every day.

The country is now getting ready to face a potential third wave and is shutting down society. Progress has already been made, with there now being 250.000 new people infected per day, but at this moment only a small part of the population has received their first dose of the vaccine.

The economical ramifications of Covid are huge. India Times predicts that more than 200 million Indians are expected to fall into poverty. Almost nine-tenths of freelancers have also seen reductions in their income as a result of the pandemic, and are unsure of whether they will be able to get more work and pay their bills in the future, according to research done at Flourish Ventures.

With decreased income, it’s getting harder for people to obtain loans for new homes or much-needed vehicles. It’s standard procedure for banks in many countries to demand that loaners can point to a steady and secure source of income if they want to take up any loans.

In some banks, the demands are more strict, while in others, they are more lenient. In Norway, for example, where technology is heavily integrated with banking, free services like help citizens compare different banks to see which one will give them the best terms when taking up mortgages, personal loans, or other loans. These types of services are also expected to become more popular in India in the coming years.

If the person is in a difficult situation with regards to income at the time, some banks will be more open to seeing their past income before Covid (or other causes of unemployment) and use it to trust that they will soon start earning money again, thereby granting the loan.

Despite all of these dire descriptions of how Covid is affecting people’s finances, there are two hopes that might make a big difference: sharing economy and more freelancing. In such a big country as India, an increased focus on sharing economy can potentially create more than 15 million new jobs, and given the country’s reputation for good freelancers, an increased focus on it might provide another source of income for those with IT skills.

The question of how these changes will be made will be up to the government to answer.

Disclaimer: No Deccan Chronicle journalist was involved in creating this content. The group also takes no responsibility for this content.

( Source : Spotlight )
Next Story