An Overview of Personal Loan Segment in the Light of New Age Intermediate Debt Trap and the Importance of Financial Literacy

Document Type : Primary Research paper


1 Research Scholar, Department of Commerce, Anna Adarsh College for Women, Chennai. 501, Legend Serene Apartments, 6-1-116 Padma Rao Nagar, Secunderabad, Hyderabad, Telangana 500025

2 Research Supervisor, Associate Professor, Department of Commerce, Anna Adarsh Collegefor Women, Chennai. A2 Praveen Viraja, 25/57 Valluvar Street, Arumbakkam, Chennai, Tamil Nadu 600106.


The pressure of the pandemic situation and the resultant economic chaos need no elaboration. The financial crunch caused due to pay cuts, loss of employment has severely affected not only the saving potential but also increased the debt burden for many. The poor judgement made in the selection of lenders from the digital platforms have proved costly for many individuals especially in the Small Ticket Personal Loan segment. The study echoes that lack of financial literacy and an affinity towards easier access to money has exaggerated the problem that has crept deeper into the society and in the personal lives of the victims of these financial fraudsters. The panacea depends on increasing the financial literacy programs along with clarity and tightening of regulations for the digital lenders.