Easy Tips For Personal Finances During the Coronavirus Pandemic - Loan Trivia

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Thursday, 11 June 2020

Easy Tips For Personal Finances During the Coronavirus Pandemic

Has the coronavirus pandemic hurt your income? Here are the best ...

As per the World Health Organisation, the out-of-pocket expenses of Indian households for healthcare averaged 67.78%, whereas the global average was around 18%. One of the primary reasons for that is the lack of health insurance.

  • Health insurance penetration in 2019 was somewhere around 34% - 35%.

Even though a substantial portion of the population is insured by policies sponsored by the government, the coverage provided by the same is not ample. On the other hand, health insurance in India is among the cheapest globally. 

  • In metro cities, a couple with an average age of 30 years can avail a policy of Rs.1 crore with an annual premium of around Rs.14,000.

During the absence of health insurance, a quick personal loan becomes the ideal financial product that patients look for during a medical emergency.

The majority of borrowers opting for such loans in India do so for medical purposes, although specific data is unavailable. The emergence of fintech companies and start-ups have eased the process of availing such quickly in a short time.

However, even though a quick personal loan can solve such crises, individuals still need to maintain their personal finances to ensure their debt does not become unmanageable. 

Tips to Maintain Strong Personal Finance

  1. Determining the savings –

One of the most effective methods to tackle a financially challenging situation is to calculate how much savings one has. It allows individuals to set their requirements without worrying about depleting their cash reserve. 

Calculating the total savings also allows an individual to create a budget more effectively, which is the next step of maintaining personal finances.

  1. Creating a budget –

Financial experts suggest creating a budget suited for economically turbulent times during the emergency medical scenario. A leaner budget will allow streamlining as well as reducing overall expenses, letting an individual save more from their available capital.

A leaner budget must cover all the expenses one might require to pay for the necessities while withholding any expenditure on luxury items.

Must Read: Instant Personal Loan Without Leaving your Home

  1. Paying debts first 

While creating a leaner budget, it should not interfere with any monthly savings plan or existing debt repayments that an individual is liable to pay. 

Credit card debts can pile up and become substantial, owing to the high interest. However, one can avail a credit card with a low or 0% interest rate. Usually, these offer promotional rates for an introductory period.  

There are no such options in case of loans of any type. However, an individual can consult with his or her lender and avail a moratorium period. In any case, make sure to pay the loan EMIs in due time. 

Defaulting on credit will impact one’s CIBIL score, which can cause issues during both secured and unsecured quick personal loan verification process at a later time. 

  1. Availing credit to meet unforeseen requirements – 

Short-term, unsecured credits like a quick personal loan is the best financial products to tackle emergency funding requirements. Such collateral-free advances usually offer up to Rs.25 lakh as a loan; a large amount of such short term personal loan helps during emergency.

  • As per the latest RBI bulletin, personal loans recorded a YoY growth of 17% in April 2020. During the financial year 2019-20, these loans registered a growth of 14%.

These credits do not come with any end-use restrictions, allowing a borrower to utilize the sum for various types of financial requirements. The quick approval and disbursement, along with the minimum documents required for a personal loan, make it beneficial for individuals who require immediate financial assistance. 

Moreover, financial institutions like Bajaj Finserv also provide pre-approved offers, which makes the application process even more convenient. Pre-approved offers are available on several types of financial products, including personal loans and business loans. You can check your pre-approved offer online by sharing only some essential information online.

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