With rising living costs and increasing financial uncertainty, more Indians are turning towards passive income streams to supplement their earnings. Financial experts say that building multiple sources of income is no longer optional — it’s a necessity for financial security.
Here are five passive income ideas gaining traction in India:
1. Securities Lending and Borrowing Mechanism (SLBM)
Under SEBI’s SLBM framework, investors can lend their idle shares to traders for a fixed interest. This allows shareholders to earn extra income while still retaining ownership of their stocks. With NSE and BSE supporting SLBM, it’s becoming a preferred choice for long-term investors.
2. Stock Dividends
Blue-chip companies like TCS, Infosys, and HDFC Bank regularly reward shareholders through dividends. By investing in stable, dividend-yielding stocks, investors can create a steady cash flow without selling their holdings.
3. Rental Income — Beyond Just Homes
While renting out residential property remains popular, many Indians are now earning from alternative rental avenues:
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Parking space rentals in high-demand urban areas
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Co-working spaces for freelancers and startups
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Short-term holiday rentals via platforms like Airbnb
4. Peer-to-Peer (P2P) Lending
Through RBI-registered P2P platforms, individuals can lend money to vetted borrowers and earn attractive interest rates. While it carries risk, careful portfolio diversification can reduce defaults.
5. Digital Content & Royalty Earnings
From self-published e-books to YouTube channels and stock photography, digital platforms offer recurring income opportunities. Once content is created and marketed, it can generate revenue for years through ads, subscriptions, and royalties.
Financial planners recommend starting with one or two passive income sources, then diversifying gradually. “The key is to choose income streams that align with your risk appetite, skill set, and available capital,” said a Mumbai-based wealth advisor.