Long gone are the days when businesses were considered just a city thing. With rapid rural development, a growing entrepreneurial spirit among the populace, and easily accessible business loans – more and more businesses are popping up in rural areas across India.
With the increasing support from the Government and a constant push to make an independent India, they offer several schemes for people so that people can set up their own businesses in rural areas and don’t have to be dependent on anyone else.
This has opened up various doors of opportunities for people to fulfil their dreams of being business owners.
So, If you too are looking to open your own business, but don’t know where to start, here’s a list of the five most profitable businesses in rural areas in India to help you out.
#1 Auto-repair business
With uneven roads and no fuel stations for miles, it’s pretty common for vehicles to break down in rural areas. Therefore, opening an auto repair shop is a great idea, especially where there are no shops for miles. To make it a profitable business in a rural area, you can begin by starting small. For instance, in the beginning, you can repair only two wheelers or if you’ve some people around you who have the knowledge of how to do the job, you can hire them as well, thereby creating jobs.
However, keep in mind that the more remote your shop location is, the harder it will be for you to stock up on auto-repair supplies.
#2 Fertiliser business
Since rural households are primarily dependent on agriculture, starting a fertiliser supplier business can be a fast track to success. With that said, to begin this profitable business in rural areas, you may require a slew of licenses and regulatory permits, along with filing applications with local authorities.
Plus, you might need to purchase a warehouse space for your inventory, which may require a significant investment. Luckily, with readily available loans, you can seamlessly fund your property purchase, and that too at low business loan interest rates.
Additional Read – Small Business Ideas for Rural Areas in India
#3 Tutor and exam preparation service
Not all regions are blessed with top-of-the-line training institutes for exam preparation. And not all exam aspirants can flock to cities for their exam preparation. If you think you’ve the ability to help them clear their exams, you can come to their rescue by opening your own coaching institute which is one of the best businesses in a rural area.
Not only will this help the rural youth prepare for competitive exams and build their career, but it is also one of the most lucrative ideas for business in rural areas.
#4 Micro-lending services
Many rural communities still don’t have access to full-fledged financing services, leading to unorganised, predatory lenders taking advantage of their plight and charging exorbitant interest rates. If you think you’ve enough money to help them and protect your folks from being exploited at the hands of these greedy lenders, you can step up. This will not only help your folks but is also one of the best ideas for a profitable business in a rural area.
You can provide them easily accessible loans at reasonable interest rates by starting your own micro-lending firms. Since many people are looking for working capital, you will have a steady business on your hand, and the people will have a favourable lender on theirs.
#5 Dairy supplier
Since milk is easy to come by in rural areas, it’s the best business in a rural area that you can go ahead with. You can get milk from individual livestock producers and supply it to corporations or independent distributors in the city.
You can easily acquire the initial capital required through a lender at affordable interest rates and begin your business in no time.
Additional Read – Development and Evolution of Businesswomen in India
Over to you
If you do a business that solves the problem of the people or makes their work easy like opening a grocery store or a medicine store, you’ll have the best business in the rural area.
Whatever business idea you have – either one from the list of best businesses in rural areas mentioned above or your own – Tata Capital is here to help you realise it with our competitive loans.
Get affordable interest rates, fast processing, and easy eligibility – everything you need to build a thriving rural business.
Start planning your repayment schedule with our business loan EMI calculator.