You’re in your early 20s and you’ve just landed your first job. The first paycheque is earmarked to upgrading the four-year-old phone. No matter that the new iPhone you have your eyes on costs as much as the pay cheque itself. After all, the cost can be split among six easy-to-pay EMIs. By the end of the first year, you’ve also taken loans for your first overseas holiday, and to renovate your parents’ home.
The bank puts you down as a model customer. Monthly salary credits point to the payments, which make up 40 percent of your salary, as being manageable. With an expected 20 percent pay increase after the first year, the loans are bound to occupy smaller share. Those who joined the company a year before you already bought their first motorcycle. That’s next on your list. Soon, you will be able to say goodbye to those cramped train rides to work.
But then Covid-19 hits, and half the team you work with is laid off. Your salary is cut by a fourth and, at 53 percent, the monthly loan payments are making it hard for you to pay rent. Your bank announces a moratorium and you opt-in. Interest accrues but your account is still classified as good.
But for how long? That’s the question few have answers to.
Over the last five years, as traditional lending engines—credit to companies, home loans and auto loans—had slowed, banks and finance companies had grown their consumer book. This included quick loans to buy mobile phones and televisions, personal loans and payday loans. The last two years had also seen the emergence of loan apps, through which borrowers had to upload their income data and were instantly credited with money in their accounts. But, over the last three months, India’s consumer economy has been on pause.
Denne historien er fra July 3,2020-utgaven av Forbes India.
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Denne historien er fra July 3,2020-utgaven av Forbes India.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Home-Cooked Meal Is Now Greatly Valued
The pandemic has also brought with it an improved focus on hygiene, use of technology in dining, rise of cloud kitchens and resurgence in popularity of Indian ingredients
Paytm 3.0 - Reaching Near Breakeven In Two Years
As of 2020, Vijay Shekhar Sharma’s super app for financial services had run up losses in thousands of crores. Now, as digital payments gets yet another boost courtesy Covid-19, he’s hopeful of reaching near breakeven in two years
THE PANDEMIC HAS CAUSED WOMEN GREATER LABOUR PAIN
Covid-19 has shown that women are more likely to face the brunt of job losses than men, and find fewer opportunities when they want to resume. That apart, several have to deal with increased hours of unpaid work at home and even domestic abuse
LEADERSHIP WILL BE ABOUT SEEING THE BIGGER PICTURE
Leaders must not only guard their teams first during a crisis, but also deal with stakeholders with respect and dignity. And apart from pursuing business goals, they should remain committed to our planet and the environment
PHILANTHROPY SHOULD BE HUMBLE, BUT NOT MODEST
Apart from building a flexible and resilient framework for the future, philanthropists, civil society and the government must work in tandem so that every rupee is absorbed on the ground
INTEGRATED HEALTH CARE, TECH WILL DISRUPT SECTOR
While clinical research will get a boost, having a skilled workforce and public spending on health care will be challenges in the near term
DIGITALISATION WILL HELP IN VALUE CREATION
As the pandemic brings technology and innovation to the core of business and daily life, the next decade will see about 150 million digital-first families in India
Industry 4.0: Climate Revolution?
Augmenting sustainability alongside digital capabilities is an economic, competitive and global opportunity for India’s businesses, but regulations need to reflect intent
EV Dream Still Miles Away
Electric vehicles have remained a buzzword in India for years. But not much has moved on ground due to high upfront costs, range anxiety and charging infrastructure
Living Waters
A virus has caused us to scramble for oxygen but our chokehold on the environment is slowly strangling the very waters that breathe life into us. The virus is a timely reminder: We are merely consumers, not producers of life’s breath on this planet
