Who amongst us cannot use a bit of extra income, especially with minimal effort from your side? Yes, we are talking about passive income. What is passive income, you ask? Passive income is assured, timely income you earn apart from your primary or active income through a job or business.
The benefit of a passive income is that apart from initial time and money investment, it doesn’t require regular effort on your part and provides immense financial security. However, funding is a bottleneck as establishing multiple passive income streams initially requires a significant financial commitment.
Did you know you can use a personal loan for this purpose? Let’s explore the why and how, along with some exciting passive income ideas.
Benefits of Personal Loans
The following benefits of personal loans make them perfect for setting up passive income streams:
1. Instant disbursal: Personal loans have low processing time, with many lenders providing instant approval and fund disbursal. Hence, with a personal loan, you can quickly get your passive income idea off the ground.
2. No use restriction: Unlike other types of loans, such as a home or car loan, personal loan funds can be used in any way. You do not have to justify using a personal loan to fund a passive income source for the lender.
3. Ease of tracking: In a personal loan, the lender typically provides a lump sum of money at a fixed interest rate. Hence, you can easily calculate monthly EMIs depending on your loan tenure and track your loan and finances.
4. High loan amount: A personal loan can provide a high loan amount suitable for starting multiple passive income streams.
Ideas for Passive Income and How to Use Personal Loans to Fund them
1. Invest in the financial market
Investing in the market provides multiple ways to earn passive income in a growing economy like India. These are collectively referred to as financial investments.
Before investing, you need to learn about the basics of financial investments. Once you feel comfortable, you can obtain a suitable amount from a personal loan and invest in your preferred stocks or mutual funds. Assess your growth over time and make the required adjustments. Although investing in the market involves financial risk, you can establish a steady income with proper planning and knowledge.
2. Invest in a local business
Investing in a thriving local business is one of the risk-free ways to earn passive income. First, you need to identify the flourishing businesses in your area that are planning to expand and are open to external investment. An example is a local retail shop planning to add more storage space or open another outlet in the city.
Once you’ve identified the business and talked to the stakeholders, you need to decide how much financial commitment you plan on making. Once finalised, apply for a personal loan for that amount. Finally, complete the legal formalities for investing in the business.
You can hire a lawyer experienced in similar business deals to negotiate on your behalf and include the expense in the personal loan amount. You can expect a nice and steady income as the business expands and thrives further.
3. Create an online course
Online courses are in high demand in the Internet age when learning is at one’s fingertips. If you have a skill set that is in demand, creating an online course is one of the best ways to earn passive income.
First, you will need some space to record your course content. You must also invest in decent equipment for good-quality video recording. Next, you need to hire some employees to help you flesh out the specifics of your course content, record the course, and release the course online. You can obtain a lump sum to fund this venture through a personal loan.
You’ll get a steady income from course subscriptions when the course is up and running.
4. Build an app
If you are technically sound, building an app is one of the best passive income sources in India. You only need an idea and a laptop to start building an app. If you have a good idea, you can also outsource the app development part and fund the cost through a personal loan. Once your app gets on the market and becomes popular, you can expect a nice stream of passive income with minimal effort.
Remember to conduct extensive research before you choose an app idea so that it solves a real problem and clicks with the users.
5. Start a YouTube channel
If you have a unique talent that you can showcase and are comfortable in front of a camera, becoming a content creator and starting a YouTube channel is one of the best ways to make passive income.
First, you need to figure out a showcase strategy for your talent. Then, you need to invest in top-quality recording equipment. A personal loan will help you with the funding. You don’t necessarily need a team at the beginning. Once everything is in place, create a conceptual outline, record the content, and publish it on your YouTube channel.
You earn income from the views your videos get on YouTube. As your channel becomes popular, you can expect a decent passive income that has the potential to increase over time.
Conclusion
Multiple streams of passive income provide excellent financial security and mental peace. Once established, the additional income you earn through these sources requires minimal effort. Personal loans are the perfect way to provide initial financing for your passive income sources.
What are you waiting for? Choose the passive income ideas that interest you and figure out a lump-sum required for initial investment. For a reliable personal loan lender, look no further than Tata Capital.
Tata Capital’s instant personal loan comes with a flexible tenure without a collateral requirement. If you need an additional amount, there’s also an overdraft facility, and interest is charged only on the amount utilised.
26 November 2024
5 mins read
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