Title: Impact of COVID-19 on low-income financial consumers in India

Authors: Ardhendu Shekhar Singh; Dilip Ambarkhane; Bhama Venkataramani

Addresses: Symbiosis School of Banking and Finance, Symbiosis International (Deemed University), Pune, India ' Warje, Pune, India ' Symbiosis International (Deemed University), Lavale, Pune – 412115, Maharashtra, India

Abstract: The pandemic has enormously impacted human beings in general and people with low incomes in particular. It has eliminated the livelihood opportunities for those working in unorganised and small-scale industries. The consumption of products and services could have been higher and more specific. We used the secondary data to analyse the impact of the pandemic on low-income consumers. We found that the effect was felt more in the service sector; within it, financial services were a severely impacted sector. Low-income consumers needed more income to save, and at the same time, loan facilities to smoothen consumption were also unavailable. They faced limitations from the demand and supply sides. The pandemic also created fear and anxiety among consumers. Banks had to respond to it by taking measures like social distancing, protective equipment, etc., to eliminate those fears and uncertainties that have affected the consumption of financial services. This paper has analysed various factors affecting the consumption of financial services among low-income consumers.

Keywords: low-income consumers; COVID-19; impact; financial services; microfinance; India.

DOI: 10.1504/IJBG.2025.149977

International Journal of Business and Globalisation, 2025 Vol.41 No.4, pp.267 - 286

Accepted: 17 Oct 2023
Published online: 20 Nov 2025 *

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