Hi Sam,
Wish you too a very Happy New Year 
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I tried foloowing things:
1. Image loader output to encoded image src component (Not getting any image or even error).
2. Image loader output to block's background-image component (Not getting any image or even error).
3. Image loader output to block component itself (Getting Encoded text in block area instead of image).
The worst part I am stuck with is that I am not getting any error. Otherwise the solution could have been a bit easier.
Regards,
Minakshi.