How the easy consumer loans can help navigate high inflation

The rising rate of inflation is one of the worst problems that consumers today are plagued with. A cause of concern to many countries and central banks, the sky-high prices are beginning to percolate into the real economy causing a severe drain on the end consumer. As the Covid-19 pandemic was on a rampage in the year 2020, strict lockdowns were witnessed worldwide. This brought countries and economies to a standstill with the production of factories going to absolute zero, mom-and-pop stores struggling for revenue and halted transportation and supply chains. 

To support the economies during these unprecedented times, central banks across the world started slashing interest rates to levels never seen before. This was done to give a boost and provide support to the collapsing growth rates. While these actions were well taken and received enthusiastically by businesses, they set in motion a cycle of increasing prices across all commodities. Lowering interest rates and flooding the system with excess liquidity promotes a huge spike in demand. Since money was available cheaply, there was an increase in investments and asset prices driven purely by demand. 

But these events have now caused a chain reaction and the world today is challenged with extreme and record-high inflation rates. The rising commodity prices cause the input costs to increase for manufacturers and hence these costs have to be passed on to their end customers. This has caused a huge surge in the prices of even basic domestic necessities anywhere between 5% to 35%. Consumers hit by these soaring prices have found themselves frequently short of surplus cash and have had to lower their standards of living. Inflation acts as a parasite that will eat into the purchasing power of the end user. 

Source: OECD

The chart above clearly shows the rampant inflation worldwide. Even in developing countries like India, inflation has taken a turn for the worse. Today the consumer price index in India is 7.01%, well above the upper limit of the 4% to 6% band set by the Reserve Bank of India. 

This is where availability of easy loan options find their usefulness and come into action. With the reduction in purchasing power for various consumers, loan options available at point of sale help affordability and enable individuals to stagger their payment for any purchases they make. At Dili, we make such easy loan options available to customers at point of sale. This enables customers to procure products and obtain services on an immediate basis while making payments in instalments at a later date. This helps eliminate the burden of a lump sum payment at the beginning of a purchase. 

Customers can fund their aspirations and pursue their passion or even go on a vacation through the loan options offered at attractive interest rates lower than that of traditional personal loans. We at Dili understand the needs of consumers and their need for such services. Money if not spent in a staggered format in these trying times may cause a burning hole in the pockets of several middle-class consumers and may compel them to compromise on their goals and reduce their standard of living.             

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