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.
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. In fact, 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:
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 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 own 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 a PoSP 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, 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.
Related article: How to become PoSP
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 which 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.
One of the most effective sources of passive income in India is to develop a corpus for your long-term financial
goals are 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 of time. 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.
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.
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 excess of Rs. 10,000 is added to your
total income and is liable to be taxed at the relevant tax rates.
Do you have capital to lend? Then, list yourself on P2P lending platforms which 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 arealso 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.
Another best passive income idea in India is freelancing. It is the best option to boost your income and 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.
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
that can help you with the process.
You must publish your book on Amazon Kindle in order 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.
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 in order to optimize your profits, you must be conscious of all your options before taking
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.
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.
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 potential for growth. Look for sites that have a 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
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 in order for it to deliver significant returns. Despite the fact that 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!
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