Savings Decreased During Corona Period, Debt Increased

Savings decreased during the Corona period, debt increased, 132 percent increase in loans taken against gold jewelery in January 2021.

Statistics have started coming in slowly about how the Corona crisis has affected the income and expenditure of the general public of the country.

These figures show that during this time the savings capacity of the people has decreased and the debt burden has increased on them.

Data released by the Reserve Bank of India (RBI) on Friday shows that the rate of savings in households has come down to 10.4 percent in the July-September 2020-21 quarter from 21 percent in the previous quarter.

Meanwhile, the rate of domestic debt has increased from 35.4 percent to 37.1 percent against GDP.

According to the RBI, during the beginning of Corona, the rate of household savings had increased by 21 percent.

This figure shows that when difficult times began, people cut their expenses drastically in view of the uncertainties of the future and emphasized savings.

At the same time, with the savings rate coming down to ten percent in the same quarter, it means that the sources of income of the people have decreased and the expenditure has also increased.

By the way, the festive season also starts in the quarter under review every year, due to which people spend more.

This has a direct impact on savings. By the way, the savings rate for the same quarter a year ago (July-September 2019) was 9.8 percent.

According to the RBI, the state of the loans disbursed by banks remained stable in the quarter under review. But by taking the pledge of gold or gold jewelery, the activity of borrowing increased considerably.

In January 2021, there has been a huge increase of 132 percent in loans against gold. In January 2020, the rate of taking loans against gold was 20 percent.

At the same time, overall the pace of banking loan disbursement in February 2021 has been just 6.6 percent. The RBI has not given a clear reason for taking a loan against gold.

But experts believe that due to the huge rise in the price of gold in the Corona era, people were shown the convenience of getting more loans in exchange for this property.

However, many people were forced to sell gold jewelery or take loans in lieu of it even in the midst of the financial crisis.