As many as 65 percent of respondents to a recent survey claimed that the coronavirus pandemic and the resultant lockdown has had a negative impact on their income. The survey was conducted by Paisabazaar, an online lending marketplace, among 8,616 participants in a 24-57 age group across 37 cities. The participants had a debt of at least Rs one lakh.
About 16 percent of those who were surveyed said they had lost 100 percent of their income, with another 28 percent reporting income reduction of more than half due to the ongoing COVID crisis, the survey found.
The survey found that 86 percent of the self-employed customers saw incomes adversely impacted during the lockdown, and 25 percent claimed their income had come down to zero.
On the other hand, salaried customers, though highly affected, were impacted less than the self-employed. The report claimed 44 percent of the salaried respondents said their salary had not been negatively affected, another 30 percent said their salary has been reduced by more than half. 12 percent salaried customers reported complete loss of salary due to job loss, Paisabazaar said.
In terms of geographical impact, Chennai was the least impacted and Delhi-NCR the most in terms of loss of income. Over 48 percent of consumers, who participated in the survey from Chennai, said they did not suffer any negative impact due to the health crisis and the resultant restrictions imposed. And only 9 percent of Chennai residents who participated in the survey suffered a 100 percent income loss. Delhi-NCR on the other hand saw 70 percent consumers reporting a negative impact on income, with 16 percent suffering a 100 percent loss.
56 percent of the respondents to the survey had availed moratorium on loan repayments from their banks, NBFCs. The report said that 23 percent of those who availed moratorium had also reported they had no negative income disruption during this period. “This could be a result of a cautious approach being followed by many to preserve funds for an uncertain future or plain lack of awareness about the accrual of interest cost on availing loan moratorium facility,” it said.
Interestingly, while 44 percent of the customers did not opt for the moratorium, a larger 55 percent said they can afford to pay their loan EMIs and Credit Card bills each month hereon. 70 percent of those who had taken the moratorium said they would apply for the loan recast plan, the survey found. However, since only those whose income and repayment capacity has been impacted significantly due to the pandemic can opt for loan recast plan, the report said that a large section of these applicants is likely to be rejected by their respective lenders.