Compiled By: Ashish Goyal
About Ashish: He is the Co-founder and Chief Financial Officer at EarlySalary. He oversees the overall strategic direction of the company and focuses on enhancing the brand’s market position. Ashish also focuses on building the funding profile of the company. Backed by over 18 years of experience in the global financial space and in portfolio management, Ashish has imparted a dynamic approach to launching his Fintech venture in India.
The novel coronavirus – COVID-19 – has wreaked havoc worldwide. With the rising number of people infected and fatalities, it continues to grow as a threat. The widely talked implications are health, medical treatment, the need for social distancing, work from home, recession, etc. The actions from government, people, the community is to contain the outbreak at the moment, rightly so.
While we are also worried about the impact on the economy, I believe one aspect which is less discussed is the crippling effect it can have on your financial health.
Varying Degrees of Vulnerability
The corporate world, myself included, is currently engaged in its biggest efforts to adopt a work from home strategy, to tackle this virus rampaging across the globe. These are tech professionals, white-collar jobholders who are at the higher end of the pay grade and they have been self quarantined to speed up containment.
While there are many among us who might not have work from home as an option, sectors like delivery, construction, retail, restaurants, and banking simply can’t function with their employees sitting at home. According to the Labour Ministry of India, the ratio of blue to white-collar professionals is 78:22. These folks need to make the hard decision of either risk getting infected while at work or risk losing their income source. These sections of earners and employees are also at the risk of bearing the first brunt of the slowdown.
There is an increasing fear of a crushing coronavirus induced recession. Some experts believe that the recession has already set in motion, considering the dwindling price of oil and the global financial markets. In addition to this, the isolation drive has already sent shocks in the cycle of demand and supply. In other words, global value chains have been badly disrupted. The situation will worsen as the slump continues to grow eventually paralyzing the global economy.
Of course, the biggest hit has been taken by the travel and tourism sector.
Coronavirus: The Financial health Perspective
This prolonged impact of a pandemic can lead to great stress on the financial health of any individual at varying degrees. The slowdown in economic activity hit the daily wagers, temporary workers most. In the time of uncertainty, it is always advisable to keep some funds in hand and relook at the payout scheduled over the next few months. I believe it is always better to have some spare funds available. In the era where the banks could become inaccessible due to quarantine efforts to contain the outbreak, it will be virtually difficult to access traditional sources of funds.
Fortunately, there are several other options like personal loans and instant loan portals that you could rely on. At EarlySalary, my team offers instant loans of up to ₹2 lakh with flexible repayment tenures and no prepayment charges. The interest rates can be as low as Rs 9/day. Head over to the EarlySalary website to know more.!