MAM
Enormous Brands decodes the lockdown consumer amid Covid2019
MUMBAI: The stay-at-home mandate has changed the behaviour and attitudes of many Indians. Indians who were born and brought up asking for 'dhaniya' or 'mirchi' free from the vegetable vendors are now buying vegetables and other consumables without asking for prices. Stay-at-home orders have thus caused visible major shifts in people’s behaviour, according to a study by Enormous Brands.
Television grows strength to strength during lock-down
The study suggests TV still shines over OTT. 43 per cent see cable TV as the primary entertainment in the high-income households. 13 per cent across the sample size have re-activated their DTH / Cable subscription.
Interestingly, news has emerged as the new GEC. A staggering 64 per cent of TV viewing time is spent on the news channels. 43 per cent believe that news reporting is unbiased and 27 per cent believes that there is a clear indication that a few news channels are supportive of a particular political party.
Newspaper poised for a strong return
Lots of international researches suggest 21 days can break or form a habit. However, this study suggests otherwise when it comes to a daily newspaper. 74 per cent miss their daily newspaper and are waiting for the service to resume.
While 29 per cent have moved to reading newspapers online, only four per cent would unsubscribe from the hard copy. Looks like the newspaper is a habit like coffee that has grown on the Indian palette, making it difficult to part with.
India’s older adopt digital
The study shows a sharp increase, as much as 47 per cent adoption, among elders (55-65 years) of e-commerce – ordering milk, grocery and home essentials and paying through wallets / UPI.
The banks have been promoting internet banking for over a decade. In just the last month the data suggests that first time users have increased by 28 per cent. The maximum shift of 33 per cent is among the age group of 35-50 years age segments – this is the bankers' delight segment.
Covid2019 helps push the ‘Make in India’ agenda
42 per cent believe that there is an active and deliberate attempt by China to spread Covid2019 across the world for economic gains. This has led to a strong anti-China sentiment.
The data suggests that 47 per cent of Indians are willing to pay up to 25 per cent higher for Indian-made goods over Chinese-made ones. There is a strong sentiment that the world should unite against China to stop using China as the world’s manufacturer, even if it is cost-inefficient.
Enormous Brands managing partner Ajay Verma said: “The young Indian population is behaving very differently from other parts of the globe. The study suggests a high level of optimism even in a situation that has brought the entire world in a lock-down and also showcased that households feels confident about the revival of the Indian economy.”
He further added: “This study was conducted to help brands understand how the current situation is moulding the habits, behaviour and attitudes of Indians. We believe this will help us shape client communication and offer strategic counsel in line with the prevailing sentiments of the consuming class.”
Follow Tellychakkar for the consumer facing news & entertainment
Starting a business is one of the most financially demanding transitions a person can make. In the early months, expenses are immediate and often unpredictable, while revenue streams may take time to stabilise. For first-time entrepreneurs, securing small business loans can feel like a paradox: lenders expect a clean financial track-record before approving a loan, but the business cannot establish that track record without funding. Understanding the start-up lending environment in India and knowing the realistic funding options make this process far less daunting, allowing entrepreneurs to plan strategically.
Why Traditional Business Loans Are Harder for Start-ups
Most financial institutions require a minimum business vintage of 2 to 3 years before approving a term loan. This is because the first two years of operations carry the highest risk of failure. For start-ups less than 12 months old, traditional loan options are limited, and lenders often ask for substantial collateral to mitigate risk.
The vintage requirement is not arbitrary. Businesses that have survived their first two operating cycles demonstrate market viability, which significantly lowers the lender’s risk. Until this milestone is reached, entrepreneurs often rely on bootstrapping, personal savings, or alternative financing to build a stable business foundation. Understanding this reality helps first-time entrepreneurs set practical expectations when seeking funding.
Government-Linked Schemes for Startups
India offers several government-backed schemes to support first-time entrepreneurs. One such scheme is the Pradhan Mantri Mudra Yojana (PMMY), which provides collateral-free loans for micro and small enterprises in three categories:
● Shishu: up to Rs. 50,000
● Kishore: Rs. 50,000 to Rs. 5 lakh
● Tarun: Rs. 5 lakh to Rs. 10 lakh
These loans are available through eligible lending institutions, making them suitable for early-stage businesses. For first-time entrepreneurs, a Mudra loan not only provides initial working capital but also helps establish a credit history. Repaying a Mudra loan on time strengthens the entrepreneur’s profile and increases the chances of securing larger loans in the future.
Using Personal Loans to Fund Early-Stage Needs
When business loan eligibility is not yet established, a personal loan can serve as bridge funding. These loans are assessed on the individual’s credit profile and income rather than the business’s financial history, making them accessible to salaried individuals or those with a strong personal credit record.
Personal loans have limitations: the loan amount is capped based on personal income, and the interest rate is typically higher than secured business loans. Nevertheless, taking out a personal loan during the first 12 to 18 months can provide crucial support as the start-up builds its financial profile. It is especially useful for covering immediate expenses such as inventory, marketing, or office setup costs.
Alternative Financing Options for Startups
For start-ups that are not yet eligible for traditional business loans, other financing options are available through financial institutions. Many lenders offer startup-focused or small-business loans designed for early-stage businesses. These loans evaluate the entrepreneur’s personal credit profile, business plan, and projected revenue rather than relying solely on business vintage. Financial institutions such as Tata Capital provide these loans with minimal documentation and fast disbursal, enabling entrepreneurs to manage operational expenses, purchase equipment, or fund early growth initiatives without pledging collateral.
Some lenders also offer flexible loan amounts, quicker approvals, and streamlined processes, making them well-suited for first-time entrepreneurs. Exploring these options early allows start-ups to access working capital while gradually building a credit history that will support larger loans in the future.
Building the Right Financial Profile Before Applying
For entrepreneurs planning to apply for a business loan in 12 to 18 months, the preparation period is critical. Key steps include:
● Filing Income Tax Returns (ITRs) consistently and accurately from the first year
● Maintaining a clean current account with regular deposits and no overdraft patterns
● Keeping the promoter’s CIBIL score above 750
Lenders assess start-ups by examining these signals. Entrepreneurs who maintain financial discipline from the start will have stronger loan applications after two years. Additionally, tracking cash flow and avoiding irregular withdrawals can further enhance the business’s credibility.
Collateral-Based Options for Larger Requirements
Startups requiring larger amounts beyond government schemes can consider loans against property. These loans allow entrepreneurs to access larger amounts of funding at lower interest rates, as the property secures the lender’s risk.
This option carries significant risk: using personal or family assets as collateral can result in a loss if the business does not perform as expected. Such loans should be considered only when the business plan is validated, the entrepreneur has clear cash flow projections, and the repayment strategy is realistic. Careful assessment of risk versus reward is essential before pledging assets.
Practical Steps to Strengthen Your Loan Application
To maximise the chances of approval, entrepreneurs should:
● Maintain accurate financial statements, bank records, and GST returns.
● Avoid over-borrowing; apply for realistic amounts that match business needs.
● Keep personal and business credit profiles in good standing.
● Explore lenders that offer startup-friendly products.
● Be transparent and complete in all documentation.
Taking these steps early ensures a smoother and faster loan process when the business is ready for formal financing. A well-prepared application reduces processing delays and demonstrates professionalism to the lender.
Conclusion
First-time entrepreneurs often face a funding gap in the early stages, but it is usually smaller than it appears. Maintaining clean banking records, filing ITRs consistently, and exploring personal loans, government schemes, and alternative financing options help build a strong financial profile. Entrepreneurs who plan systematically from day one are better positioned to access formal credit sooner, giving their start-ups financial stability through small business loans.
The ideal time to start building a credit-worthy business profile is the very first month of operations, not when applying for a loan. By understanding available funding options and acting proactively, first-time entrepreneurs can confidently apply for a business loan and set their businesses on a path to long-term growth.
