Managing Finances in the Time of Coronavirus

By admin | May 6, 2020

The coronavirus pandemic has given rise to a global crisis. Not only has it claimed lakhs of lives worldwide, but it has also left thousands of people helpless due to its impact on the economy. 

In India, the coronavirus crisis has not only taken a toll on people’s health but it has also contributed to massive pay cuts, job losses, and indefinite loss of pay, affecting the finances of millions. While sectors like aviation, tourism, and hospitality have taken the biggest blow, employees across most industries have been hit very badly. 

In times like these, you must manage your finances carefully. You need to be smart about prioritising your payments and making wise financial decisions when it comes to any immediate expenditure. To help you with this, here are some tips 


Pay off your EMIs

Paying off your loans with the highest interest rates should be your priority. For all other existing loans, it is best if you can continue to pay your monthly instalments on time. In case you are not able to, you can opt for a moratorium on your loan for the next 2 months. However, a moratorium does not mean that your EMI will be waived off. You will still have to pay your EMIs with additional accrued interest once the moratorium period is over. If you think you won’t be able to repay your loan even after the moratorium, you can liquidate some of your investments. 


Liquidate assets

With monthly pay cuts or a job loss, you may find it difficult to manage basic household expenses. If you have invested in short-term schemes such as Mutual Funds or SIPs, this may be a good time to liquidate those assets. This will allow you to have an emergency fund, giving you enough room to plan and account for daily expenditure for the next 3-4 months. However, before choosing this option make sure to check the asset prices and opt for this in dire circumstances only. 

Another option could be using the accumulated money from your Employees’ Provident fund (EPF). The RBI is allowing people to withdraw up to 75% of the balance or up to three months of your basic salary plus DA (whichever is lower) from your EPF account. 


Look at other sources of income

If you’re finding it difficult to manage finances due to a pay cut or job loss, you may want to seek other means of additional income. Depending on your skillset you can look at other options such as giving online tuitions, teaching local languages or making and selling craft/hobby items. Not only will these alternative opportunities help you to get an additional income, but they will also help to distract you from stressing out about the COVID crisis. 


Reduce your spends

The lockdown may have helped us realise that the basic living expenses are not very high. Additional expenses such as eating out, travel, and shopping for unessential items online are what really burn a hole in your pocket. Now that you know what the real and basic expenses are, you can try and cut down on other unnecessary expenses. 

We hope that these tips will help you during these tough times. At NIRA, we aim to help India’s working-class heroes because we believe that they are the backbone of this country’s economy. If you’re facing difficulty in getting a loan from banks due to your credit score, we provide instant cash loans and cardless EMI services. To know more about us, download the NIRA app here:



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