How has the Pandemic impacted the lives of Students & Young Working Professionals?

The COVID-19 pandemic has spread to the rest of the world since the first quarter of 2020. Barely any country has been unaffected by the effects of the pandemic, be it physically, financially, or emotionally. Life is very monotonous, and the new normal has taken over, the world seems to be adjusted to it by now. Further, the effects of the epidemic have been on all age segments and have not even spared students and young working professionals, particularly financially. This life-altering event has triggered a global recession comparable only to the Great Depression of 1929. This has caused heavy loss of jobs, particularly in businesses that involve discretionary spending.

Students and young working professionals have been heavily hit with unemployment and cash crunch due to job loss and ample free time. Many of them are finding it hard to keep up with daily expenses and also emergency expenses. Even as the world hurries to find a vaccine against the coronavirus, the post-pandemic business scenario looks dull from where we are standing. Thankfully, options such as instant personal loan are available to aid through the financially trying times.

A Closer Look at the Core Challenges Faced by Students and Young Working Professionals

Clearly, the pandemic has had far-reaching effects on students and young professionals. These young folks have faced tremendous challenges during this pandemic phase due to the decreasing unemployment rate and pay-cuts and widespread withdrawal of job offers. College students are finding it difficult to pay their tuition fees, mobile bills, buy books, and add to that one more expense. Since the pandemic has taken everything online, several students need additional gadgets and more data packs to attend their online classes. This is yet another expense. This has been the case even for working professionals as they need proper gadgets to work from home. Also, due to the lockdown, the internet bills have shot up, adding not only the online classes but also the surfing of the web in free time.

COVID-19 has also dented career plans, especially for those just about to begin a job or going for higher education. Many students who just graduated have lost their job offers, and their future in a post-pandemic world remains uncertain. Another problem that many young working professionals are facing as one of the effects of the pandemic is that they struggle to pay their utility bills and even daily expenses, especially if their families depend on them. Many of these young professionals may even have taken long-term loans. Due to unemployment, it has been difficult to repay their loan instalments.

Meanwhile, the monthly bills are always knocking at the door. Hence, college students and young professionals are going through a severe cash crunch. Even the lifestyle of these students and young working professionals has been drastically affected, and it is hard to adapt with less money flow. To start with, there's been a complete halt at meeting friends, visiting restaurants, or going to the movies. At the same time, the cash crunch has not allowed this segment to enjoy the lockdown period, either particularly.

It is in this backdrop that digital lending apps have been a boon. With almost everything halted during the lockdown, digital has been doing a “double shift.” That is, personal loan apps have continued to support those in need of money during the pandemic. Instant personal loan apps such as mPokket have offered an instant personal loan to its users all over the country. They have enabled students and professionals to stay afloat during these challenging times.

Personal loan apps have been providing loans for self-employed and personal loans for salaried persons and college students. These instant personal loan apps have been there in the time of need, especially because traditional loan sources such as banks do not lend without collateral, and these apps have quick disbursal. Further, with the entire application process completely online and contactless, these apps are preferable, rather than taking the risk of getting infected by visiting lenders personally.

Impact of COVID on Different Sectors

The pandemic has wreaked havoc everywhere but has affected some sectors much more. These are sectors that involve contact among customers and the staff. The effects of the pandemic have been most felt by the entertainment, leisure, travel, and hospitality industries.

Theatres have been shut across economies. Most entertainment is now available only online. Even the music industry has been drastically hit as concerts have not been allowed since the pandemic hit the world.

Hotels have also taken a massive hit, given that travel is at an all-time low due to the hygienic paranoia and the pandemic. Many restaurants and cafes have shut down permanently due to escalating fixed costs and halting business for many months. Even though some restaurants are now operating at a limited capacity, the sector has definitely taken a big blow and will have a deep financial impact even post-pandemic.

Many other sectors that involve discretionary spending have also been hurt. This includes the retail industry and many other allied sectors. Retail has mainly been hit due to income uncertainty and shutdown of malls. Significant effects of the epidemic have been seen on the gaming industry as well, with gaming centers shut or operating at limited capacity. The postponement and most-awaited of most sporting events like the Tokyo Olympics 2020 has affected allied sectors as well. Most sports events have been cancelled or postponed indefinitely. Most of them are now going on without a live crowd.

Further, airlines, the automobile sector, and even real estate are seeing a considerable contraction given that most people would want to avoid travel, save their money, and protect their health, rather than travelling or taking on new long-term liabilities such as home loans or car loans. At this point, the damage is not confined to select businesses but is widespread across all the sectors.

The Road Ahead

Like most countries, India too is on its way to “unlock” the country. This refers to easing restrictions on movement and activity. Economic activity is slowly limping back to normalcy. However, it will be a while until things resume to pre-covid levels. Business opportunities post-pandemic are likely to be adversely affected.

Therefore, during such challenging times, students and young working professionals may face a cash crunch. It could be anything—from payment of tuition fees to even arranging medical expenses for a family member. In this case, students and young working professionals may find it individually difficult to secure loans, mainly due to personal loan eligibility and student loan eligibility criteria from conventional lending sources like banks. Also, secured loans may be out of reach due to lack of collateral or security.

mPokket provides instant personal loans to students and young working professionals. This personal loan for salaried employees and students can help them tide over financially tricky times. This instant personal loan is available online easily on mPokket's instant personal loan app.

mPokket, with its quick disbursal times, through its loan app for students and working professionals, has already lent to over 5 million users. mPokket's instant personal loan app has assisted young people through their journey by helping them through any short-term money crunch they may face. Plus, mPokket loans require minimal documentation, are paperless, and need no security. Moreover, the instant personal loan is available for flexible loan amounts for up to 90 days at attractive interest rates. mPokket is your friend in need when it comes to difficult financial situations.

Don't let the pandemic derail your life. Download the trusty and reliable mPokket's instant loan app for college students and young working professionals today!