Beyond Credit Scores: How Superstition & Cultural Taboos Block Access To Business Loans
Business loans aren’t just financial products, they’re deeply emotional decisions wrapped in fear, pride, hope, and heritage.
By Abhilash Madabhushi
Imagine a shopkeeper with a strong company concept, a growing client base, and a clear opportunity to expand. But the loan application has not been processed, not because he doesn't qualify, but because it is Tuesday. He also believes that Tuesday is not a good day to borrow money.
For decades, the conversation around MSME lending in India has focused on credit access, paperwork, interest rates, and financial literacy. But beneath these surface-level barriers lies a quieter, more persistent challenge, one that can’t be solved by fintech UX alone.
According to new findings from Consuma’s rapid research platform, nearly 43 per cent of SMB borrowers delay or avoid loan applications due to cultural taboos, family dynamics, and superstition. From skipping loan applications during Rahu Kaal to fearing social judgment from relatives in banking, the data reveals that business borrowing in India is as emotional as it is financial.
When Superstition Sits At The Decision Table
The most surprising but significant realisation: belief systems matter. According to the study, various company owners intentionally postponed loan applications owing to superstitious beliefs. These included particular days or time frames like Rahu Kalam to avoid "bad luck”. It reflects a deeper cultural reality in which financial choices are highly emotive. More often than not, they are also influenced by tradition.
Perhaps even more intriguing is this statistic from the study: 17.83 per cent of respondents preferred borrowing from friends and family rather than asking for a business loan.
A factor rarely acknowledged in product design but quietly shaping decision timelines is the role of belief systems like postponing loan applications based on astrological advice or avoiding “inauspicious days” like Rahu Kaal. It’s easy to overlook these behaviours as edge cases, but they’re far more mainstream than we think.
For marketers and product teams, they’re signals and quiet truths hiding in plain sight. Often, they’re not captured in dashboards or focus groups because we’re not asking the right questions or because we assume modern finance lives in isolation from cultural nuance.
When a product feels emotionally unsafe, when the process feels clinical, rigid, or culturally tone-deaf, people default to what feels safer. That might be a family member, a friend, or a local moneylender. This is not because the terms are better, but because trust is already built in.
In a category where behaviour is often driven by belief, awareness isn’t enough. Brands need to tune into context and design for it.
For a CMO at a large financial brand, this is a moment of reckoning. The true competitor may not be another lender but rather someone's kin, neighbour, or spiritual counsellor.
The challenge further extends beyond just improving the product. It's about building a brand that understands emotion and respects cultural context. Furthermore, it must be felt comfortable to approach.
Beyond the Loan: Trust Gaps & Application Fatigue
For many small business owners in India, applying for a loan feels less like a strategic move and more like exposing a personal vulnerability or admission of failure. The Consuma study reveals a deep trust deficit; borrowers hesitate to disclose financial details, even to those within their own networks, driven more by pride and stigma than by privacy concerns. When financial and social systems feel judgmental and burdensome, even qualified borrowers walk away.
While for a lesser fraction, the Consuma research found that aggressive collecting approaches caused emotional hardship among borrowers. Words like "harassment", "mental trauma", and "irritation" appeared more than once.
In a world where customer experience is a buzzword, this should be more impactful. Because each loan interaction, from approval, delay, call to a reminder, influences how people perceive a brand and formal finance in general.
More Than Just Financial Products
Business loans aren’t just financial products, they’re deeply emotional decisions wrapped in fear, pride, hope, and heritage. The Consuma research strips back the layers to remind marketers, lenders, and policymakers that there is a person behind every form.
One with beliefs. One with boundaries. And one who might avoid a perfectly reasonable loan just because it’s an unfavourable astrological period.
Understanding this is no longer optional. It’s the difference between being a service provider and being a trusted ally.
(The author is the Founder of Consuma AI)
Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd.
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