COVID-19 was an unprecedented crisis that caused dramatic changes to major global economies.
The pandemic turned the world upside down and impacted every person’s life in some way or the other.
What started as a gigantic health crisis slowly paved the way for colossal damage to the jobs and incomes of people.
The surge in the COVID-19 wave resulted in financial hardship and job loss to many people worldwide. This was fuelled by extended lockdowns imposed to curb the spread of the pandemic.
Families that had only a sole breadwinner were the most affected. Most people whose monthly income was below average used up their savings in an initial couple of months. They were pushed to borrow money to meet their medical, loan repayment, and other expenses and thus landed up in deep debt.
The worst hits were delivered to the migrant workers and their families. They could neither move to their hometown nor continue paying high rents in the absence of jobs. This led to a lot of financial strain on them.
Along with the number of people affected by COVID-19, the unemployment rate also surged to a whopping 24% during April 2020. This was just after one month of containment which shows the economic impact on workers and their families.
Due to the reduced flow of income, many families were unable to support the education of their children. Schools moved online, and parents who were unable to afford gadgets for access to online classes suffered. Many dropped out of school, and this affected the education of a lot of children across the country.
The impact of COVID-19 was not spared in small and medium-scale enterprises too. Restrictions on mobility disrupted the movement of workers and materials, and small businesses had to close their shutters. This had a great impact since they were left with little support to repay EMIs.
There were lots of job cuts, even in the organized sector. People had to work for lesser salaries to retain their jobs in many cases. Those who had taken loans for purchasing homes, cars, etc., faced a tough time repaying their monthly installments.
People whose jobs entailed a lot of travel faced severe impacts with continuous nationwide lockdowns. Employers who were themselves affected by the loss of business could not do much to help with the financial position of the employees.
With existing insurance coverage not supporting COVID-19-related expenses, people had to spend more to have the coverage included. This made the hole in their pockets deeper.
The situation began to improve in the latter part of 2021 with more preparedness from the government.
Institutions like Akme Fintrade India Limited through their portal www.aasaanloans.com also pitched in as they help improve the financial position of people through top up loans to their existing customers.
A greater proportion of the population does not have access to loans from traditional banks and financial institutions. Aasaan Loans assists them in taking their business on the growth path.
It is a technology-driven platform that identifies businesses with low risk and high potential but had no access to finances previously.
Aasaan Loans caters to a wide population with a variety of hassle-free loans.
Stringent formalities and rigid repayment policies make it difficult to obtain loans from traditional banks and financial institutions. These curb the spirit of ambitious businessmen and leave them no choice but to quit or obtain loans from unorganised lenders at exorbitant rates of interest.
With faster loan disbursals and flexible payback terms, Aasaan Loans is helping farmers and other small business owners tide over the financial crisis. You can submit your loan application in just three simple steps.
Aasaan Loans operates on a mission to provide quick monetary assistance to common people.