The Covid-19 pandemic and the resultant lockdowns have hit the lives and livelihood of folks difficult.
The Covid-19 pandemic and the resultant lockdowns have hit the lives and livelihood of folks difficult. The most serious influence – particularly on the folks in decrease-revenue groups – was that of the nationwide lockdown imposed from March 2020.
The prolonged lockdown forced the jobless labourers to flee from metro cities to their residences in villages and smaller towns.
As a outcome, requests for smaller loans in Tier 1 and Tier 2 cities fell in the course of the lockdown, observed SartCoin – an app-based micro-lending platform that supplies smaller-ticket loans.
By leveraging technologies and building a distinctive company model to guarantee that credit was out there for the underserved sections of society – the segment most prone to financial shock – in the difficult occasions of Covid-19 pandemic.
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With a client base of more than 50 lakh special user downloads and presence in 17,000 pin codes, Smartcoin have analysed the information collected more than pre, in the course of, and post covid period and witnessed handful of intriguing information trends –
The portal witnessed folks requesting loans from Tier 1 and Tier 2 areas had drastically come down in the course of the very first Covid wave, on the other hand, it has once more bounced back to pre-Covid level, indicating that the migrants are returning to their work cities.
Smartcoin witnessed that the percentage contribution of demand for loans from decrease-revenue groups (Monthly revenue significantly less than Rs 14,000) had gone up by as significantly as 50 per cent in the course of the pandemic as the Covid-19 pandemic impacted the decrease-revenue groups the most, breaching Pre-covid levels.
Although, with the enhanced circumstance of the Indian economy, their month-to-month revenue has began going up and the contribution has returned to the pre-Covid levels.
Since the pandemic hit the nation once more, the platform saw an apparent demand in the loans for health-related purposes escalating around 30 per cent across city tiers.
It is also intriguing to see that the demand for loans with the goal of marriage was lowered in the course of the early months of the pandemic but inside a handful of months, the demand has shot up drastically breaching the pre-pandemic levels.
When the lockdown was imposed across the nation the demand for loans with the goal of travel came down by 30 per cent, but now once more the demand has began enhancing and has gone up by more than 20 per cent from these levels.
The contribution of the youth of up to 23 years of age in loan demand has been on the rise across India. In the pre-covid period, this was at 17 per cent. During the very first wave of Covid, it was at 19 per cent and now amid the second wave, it has reached up to 23 per cent.
Expressing his opinion on the borrowing trend, Rohit Garg, Co-founder & CEO, Smartcoin mentioned, “The last couple of months have definitely been one of the toughest times in recent memory and we solemnly stand with everyone who has suffered at the hands of the pandemic across India and the globe. We, as a disruptive fintech enterprise, are unwavering in our commitment towards ushering financial inclusion and financial access for the hitherto underserved and under-banked sections of society. And with a pandemic at hand, our duty towards the country and our people becomes even greater.”
“We have managed to stand our ground during this pandemic and continue to provide valuable financial reprieve and loan packages to those who need it most. We are grateful to our customers across the country who showed trust and spirit and continued to be with us even during these bleakest of hours. We are also confident that humanity will emerge triumphant from this challenge,” he added.