How to save money amid job losses or pay cuts due to COVID-19?
New Delhi | Jagran Business Desk: The COVID-19 pandemic and lockdowns in various parts of the country put in place to control its spread, led to heavy job losses, pay cuts, furloughs and mass terminations as well. Following which people in many parts of the country continue to face financial consequences of the pandemic in their lives and the lifeline formed by the same.
Jagran English enlists four options you may opt to go through these difficult times:
1. EPF corpus: Acknowledging the financial hardships being faced by the people during the pandemic, the government has allowed the people to withdraw up to 75 per cent of their Employee Provident Fund. However, withdrawing EPF can affect the post-retirement security. Experts also advice to go for EPF withdrawal only if the existing investments are not enough to go through the time.
2. Credit card dues into EMIs: People can now convert their Credit Card dues into EMIs and pay them in installments. The interest laid on these installments is also less than usual. At the same time, the repayment of the EMIs can go as long as five years, allowing the credit card-owning individuals to repay in viable tranches.
3. Loans: Banks and Non-Banking Financial Companies are not being too welcoming these days when it comes to granting loans due to declining repayment capacities of the individuals in the wake of COVID-19 pandemic. One may, however, consider taking loans against Gold or property and loans against financial securities to rule out financial inabilities in terms of repayment.
4. Health Insurance: An adequate Health Insurance can save you from a load of other health-related expenses that have become a norm of the times of pandemic. In case you are not covered by an employer-given health insurance, purchase a health insurance policy.
Posted By: Mukul Sharma