MAM
Jivi Mobiles marketing budget 5 per cent
NEW DELHI: Jivi Mobiles, a division of Magicon Impex Pvt Ltd, proposes to spend five per cent of its total investment into marketing of its mobiles.
Jivi Head Marketing Harsh Vardhan told indiantelevision.com that the company is only advertising on FM and in newspapers at present in view of its target to reach rural audiences as the mobiles launched by it are not smart phones. However, it will ultimately go 360 degrees in its campaign at a later date. At present, Jivi already has the Jivi Shoppe channel on Dish TV (209) and Reliance (313).
Jivi Mobiles CEO Pankaj Anand said that seventy to seventy-five per cent of the parts of its mobiles are still imported from China, but was quick to add that the country had the potential to produce all the parts if the government gave the right incentive, including increasing the duties on imported parts.
Earlier, Jivi announced the launch of seven feature mobiles ranging between Rs 699 and Rs 1199. Anand said this had become possible because of the encouragement given under the Make in India scheme.
Demonstrating style combined with advanced technology, the devices aspire to be the ideal companion for people who are looking for offering seamless and enhanced user experience at an affordable price.
Anand said “We are one of the very few companies in the country to offer such a wide range of feature phones at these price points. All our devices and chargers are Bureau of Indian Standards (BIS) approved. The products would be ‘Made in India’, in our newly opened facility in Delhi. ”
JIVI Mobiles is setting up two new facilities with an investment of Rs 200 crores. JIVI Mobile first factory is in Mahipalpur, New Delhi, built up on an area of 15000 sq. ft. which would cater to the north and east India demand of JIVI Mobile phones. The facility in Mahipalpur will have a capacity to roll out 700,000 phones per month and it employs some 350 employees in the first phase.
The second facility of JIVI Mobiles is located in Lonavla, Maharashtra, to cater to the south and western parts of the country and would be operational in the coming months.
“This investment of Rs 200 crore in our manufacturing units would be made in phases and would have a capacity to generate employment for nearly 1000 skilled workers over a period of time. The purpose of setting up these manufacturing facilities is to save on the imports duties and hence cut on the manufacturing cost by 10 to 15 per cent. We would pass on the benefit to our customers.” He said there were over 550 service centres all over the country with eighty per cent of them being in rural areas.
The company proposes to tap the huge potential for feature phones in the country and manufacture all its devices in India in the days to come. Jivi Mobiles would be manufacturing battery, chargers and handsfree in India to cut the cost of duty which is 29.5 per cent currently. The benefits would be passed on to the customers.
Answering a question, he said the phones at present only had the option of Hindi and English but would soon have other languages as well. Every feature phones comes with a scheme of ‘Dugni Bachat Dugna Fayada’ – free LED bulb – 9W.
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.
