Who would not love to earn money while sleeping? But, is it even possible? Yes, through passive income sources and there are numerous passive income ideas in India to explore.
Passive income is the opposite of an active income which does not require your constant time and effort. However, it does require hard work upfront to build something, so that down the lane you can sit back, relax, and let that money flow into your bank accounts.
According to CNBC, the richest population worldwide is more reliant on investments (which is considered as a passive income) for their income. Hence, if you want to be wealthy and earn more you need to put some additional effort and look out for some secondary income sources in India.
Why do you need passive income?
We all have faced the consequences of the pandemic which accentuated the need to have secondary or passive income in India. In addition, with inflation so high, having an extra source of income can be a great idea. It might be a wonderful method to get by during times of uncertainty, such as being unemployed or taking time off from work. Along with your core job, passive income in India gives additional stability. It increases your financial independence and flexibility, allowing you to escape your monotonous 9-5 job later. Therefore, today it is vital for anybody to have at least one passive income idea in India to lead a flexible and balanced life.
The idea of passive income in India has recently gained popularity. Previously, the alternatives were restricted; however, the emergence of numerous internet platforms has provided Indians with the possibility to supplement their primary income. So, let’s dive into some passive income ideas in India to get you started.
Here are the top 11 passive income ideas to earn money in India:
1. Become a PoSP
One of the best passive income ideas in India is to become a PoSP. If you wish to earn attractive payouts, you can enroll yourself as a PoSP insurance agent.
Let’s first understand who is a PoSP.
The full form of PoSP in insurance is the Point of Sales Person. A PoSP is an independent insurance agent that offers a broader range of products from a variety of insurance firms, including health insurance, term life insurance, two-wheeler, four-wheeler, commercial vehicle insurance, and more. The Insurance Regulatory and Development Authority of India has pre-underwritten and authorized these products (IRDAI).
Who can become a PoSP?
You can become a PoSP insurance agent if you are over the age of 18 and completed the 10th grade ca. It is a wonderful opportunity for recent grads and those looking for part-time work. It’s also a great chance for college students, stay-at-home parents, retirees, and even those who already have a career but want to do more on the side.
Benefits of being a PoSP?
Becoming a Point of Service Provider (PoSP) insurance agent in India can provide several benefits. As a PoSP insurance agent, you can earn commissions and bonuses based on the policies you sell, giving you the potential to earn a significant income. They are independent contractors, allowing you to set your schedule and work at your own pace and as you gain experience and establish yourself in the industry, you can have the opportunity to advance to higher-paying roles. PoSP insurance agents play a crucial role in helping people protect their families and assets by providing them with insurance coverage. The policies you sell as a PoSP insurance agent will continue to earn you commissions over time, giving you the potential for a passive income stream.
To become an insurance agent, all you need to do is, find leading insurance companies with whom you can tie up as a PoSP. One such company is PBPartners, which offers multiple advantages to its agent partners such as zero investment, great flexibility to work, the best product line, trust and support of Policybazaar, and the best earning potential in the market. The company also provides a seamless onboarding process, allows to work with more than one insurance provider, provides comprehensive training to its agent partners, and the best platform to sell insurance.
2. Renting out property
This is possibly the most desired passive income source in India, particularly for individuals owning many properties. For example, if you have two properties, you may rent out the one that is not occupied and generate income. If you have a decent property in a premium location with adequate infrastructure and connections, your rental income might be significant.
Renting out a business property may bring in a substantial amount of money. Therefore, when purchasing a house, consider the rental component in case you need it later. If you want a reasonable rent, maintain the property well, and complete any repairs on schedule.
3. Dividends in mutual funds
One of the most effective sources of passive income in India to develop a corpus for your long-term financial goals is Mutual Funds. There are several types of Mutual Funds available for investing, but a Dividend is an excellent choice for earning high returns. A dividend mutual fund invests in equities of firms that distribute dividends to their shareholders. Dividends are a portion of a company’s profits that are distributed to its shareholders or stockholders. Dividend mutual funds are invested in so that investors can extract the most value in a short period. Dividend mutual funds invest in firms that are anticipated to provide a big portion of their income to investors in the form of dividends.
A dividend mutual fund may be an excellent source of income since the money can be used to purchase more mutual funds. You can expect reliable and consistent income if you invest in it. It is also a low-risk investment with long-term potential. So, if you are a low-risk investor, dividend mutual funds are a good choice.
4. Dividend stocks
Now, let’s talk about one of the best passive income sources in India, dividend stocks. Dividend stocks have long been used for generating passive income. Finding good stocks requires extensive research and considerable analysis, and if you invest a massive amount of money it will lead to great returns. Also, if you invest in dividend stocks persistently, you can achieve substantial economic returns.
Moreover, dividend stocks are a one-time investment. The more dividend-paying shares you hold, the bigger the payout. So, grow your wealth today by investing in different dividend-paying stocks.
5. Savings accounts with high interest rates
Today interest rates on bank savings accounts have fallen but certain banks still offer greater rates. Furthermore, few banks provide interest every month rather than each quarter. Such high-interest savings accounts can provide a steady stream of cash.
You can invest in a high-yielding savings account if you want low-risk and guaranteed income. However, before investing, do your homework. Also, in a fiscal year if the interest income is more than Rs. 10,000 is added to your total income and is liable to be taxed at the relevant tax rates.
6. Peer-to-Peer lending
Do you have the capital to lend? Then, list yourself on P2P lending platforms that will help you develop a reliable source of passive income. Such lending platforms operate as intermediaries for borrowers and lenders. Here, you will be linked with a potential borrower who is evaluated based on their credit score.
The interest rate you charge for loans is completely decided by you. Once the processes are completed, you have to credit the funds to the borrower’s account and earn interest on EMI payments. Check if peer-to-peer platforms have an NBFC P2P license and are also bound to RBI restrictions.
Most P2P companies also help you in refunding if payment is not made. Therefore, it is suggested to list yourself on such P2P networks with reliable risk assessment mechanisms to avoid non-repayments.
7. Freelancing
Another best passive income idea in India is freelancing. It is the best option to boost your income and is one of the great passive income ideas in India without investment. For instance, if you are an exceptional writer, you can opt for content writing. Many businesses and platforms hire multiple freelance writers for their work. Similarly, if you are skilled at graphics, you can consider graphic designing.
In case you own a large number of followers on social media, you can be an influencer and earn a lot of money. The rise of part-time jobs in recent years has led people to follow their passion and convert into a source of secondary income. Just keep an eye out for possibilities and seize them as soon as possible.
8. Write an ebook
There are multiple alternative income sources in India and generating ebooks is among them. Recently, ebooks have produced a significant amount of passive income. EBooks sprang onto the scene around 2010 and are now a very popular material format. A person can create an eBook to share their knowledge with the world if they are an expert in a certain field. You don’t have to travel alone. On services like Upwork, you may discover authors and book editors who can help you with the process.
You must publish your book on Amazon Kindle to make it available to your readers. Some form of promotion is required to reach as many people as possible. Once they are established in the market, the bulk of writers who write and sell eBooks rely on page reads and Kindle sales to support themselves.
9. Start a YouTube channel
For many people, making a living off of YouTube is their dream. And while it’s easier than ever to create a YouTube channel, it’s harder to make it a revenue generator. Your initial $100 may be made by selling something or accepting a sponsorship offer, but to optimize your profits, you must be conscious of all your options before taking any action.
YouTube is a passive source of revenue that never ceases. You’ll discover that sponsored videos and ad revenue on your YouTube channel can help you generate a steady income. The secret to creating a popular YouTube channel is to regularly publish new videos over an extended period of time. Make sure each video you submit is of good quality and interesting to viewers.
10. Become an affiliate marketer
Affiliate marketing is a way to earn passive income in India by promoting other people’s products and earning a commission on any sales made through your unique affiliate link. To begin with, choose a niche or industry that you’re interested in and that has a good potential for affiliate marketing, such as personal finance, health and wellness, or technology. Find affiliate programs that offer products or services in your niche. Many companies, such as Amazon and Commission Junction, have affiliate programs. Create content, such as blog posts, videos, or social media posts, that promote the products or services you’re an affiliate for. Be sure to include your unique affiliate link in your content so that people can make a purchase. Drive traffic to your content through search engine optimization, social media marketing, or paid advertising. Monitor your affiliate income and adjust your strategy as needed to optimize your earnings.
Note that it takes effort and time to start seeing significant results. Also, it’s important to follow the guidelines of the affiliate program and be transparent to your audience about your affiliations.
11. Buy and sell websites
Buying and selling websites can be a way to earn passive income, but it does require some initial investment and effort. To get started, look for websites that are in a niche or industry that you’re interested in, and that have the growth potential. Look for sites that have stable traffic and revenue, and that have a clear monetization strategy, such as affiliate marketing, advertising, or e-commerce. Purchase the website, either by negotiating directly with the owner, or by using a website brokerage service. Once you own the website, work to improve its performance by optimizing the content, design, and user experience. Make sure that the site is mobile-friendly and that it loads quickly. Also, look for ways to increase traffic and revenue, such as by adding new content or monetization methods. Make sure the website is making money through various methods, such as through advertising, affiliate marketing, or e-commerce. After you’ve built up the website’s traffic and revenue, you can sell it for a profit. You can either sell it yourself or use a website brokerage service. Once you’ve sold a website, you can use the profits to purchase and optimize another one.
It’s important to note that buying and selling websites can be a bit more complex than other passive income strategies, and it’s a good idea to have some knowledge of website development and online marketing before getting started.
Winding up!
Building a secondary income source in India takes a significant amount of time and work. However, once everything is in place and the money starts flowing in, your involvement is minimal. To keep the passive income rolling in, you may need to keep your product updated or your rental house well-maintained. It is also essential to monitor your passive income sources for them to deliver significant returns. Although it is marketed as "easy money," the majority of effective passive income ideas are the product of hard work. So, pick any of the above ideas and start making money today!
