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Coronavirus Crisis: How P2P lending helps the underbanked segment?

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Coronavirus Crisis: How P2P lending helps the underbanked segment?

Under the leadership of Prime Minister, Narendra Modi, India has performed reasonably well thus far in curbing the spread of the coronavirus. Although it is still in the early stages, following preventive measures to reduce the chances of a community spread are vital in defeating the virus completely. Health-protective measures initiated by the Prime Minister such as airport screening, legal lockdown, quarantine, contact tracing and awareness through public address have been crucial in preventing the spread of the virus. In this article, we elaborate on Coronavirus Crisis: How P2P lending helps the underbanked segment?

The Call for Janta Curfew

PM Modi, in his public address, has called for nationwide support on March 22, 2020. The Janta curfew was announced to honor people such as doctors, hospital staff, people associated with transportations services, police personnel, etc. who have been working day and night to help India get through the crisis.

With Indians working from home and ensuring they don’t step out as per the government’s instructions, underbanked individuals such as an auto-rickshaw driver or housemaids are struggling with a cash crunch, forcing them onto a financial crisis.

The Coronavirus affect on the underbanked segment

The underbanked segment includes those who don’t have a bank account and receive their monthly salary in cash, which fluctuates according to the general demand. They rely on their monthly income to fulfill expenses.

Due to the coronavirus and its consequences, which have contributed to the economic slowdown, these individuals require immediate cash to provide for their family amid the pandemic. For them, the only viable option to raise cash is through long-term loans which they can repay when the country fully recovers from the coronavirus.

How can P2P investments help the underbanked segment?

The viable solution for underbanked individuals during this crisis is to approach the banked segment for their support. The right time is now to stand for these people, not only on the 22nd March but until the pandemic is over.

RupeeCircle, as an innovative P2P platform, has always strived to help the underbanked segment while also providing a unique set of investing features. Investors, looking to help the underbanked segment can look to invest in P2P platforms to allow borrowers to raise immediate cash. This way, amid a stock market crash, investors can still diversify their investments, get a hefty return on their investments, while helping the underbanked segment when they need financial support.

The past several weeks have been tough on the Indian citizens as they tackle the pandemic and protect their loved ones. In this time of crisis, we should look to financially help the people who have been adversely affected as much as we can. For investors who have lost their wealth in the stock market, P2P platforms can be leveraged to systematically recover the wealth and allow the under-banked segment to attain low-interest loans and eliminate the financial burden. Let us support the people who have always supported us in our lives. Lend to help, lend to recover!

To know about more the P2P lending, click here to read more.

This article is authored by Nikhil Prabhakar, Head of Marketing & Products at RupeeCircle. He is an alumnus of IIM Ahmedabad & ESCP Paris and has 10+ years of work experience across multiple industries like Fintech, IT & Energy. He is an active investor across equity, derivatives, debt and real estate.

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