This blog will delve deep into Best Fintech Business at Low Investment available in India.
The finance industry is evolving at lightning speed. InvestIndia reports that the total market size of the fintech industry was $584 billion in 2022 and is estimated to be approximately $1.5 trillion by 2025.
Do you strive to have a share in this vast revenue figure? Wondering how? Your best chance is to set up a business in the finance industry. However, do you lack funds? No worries! You can start small.
We have even put together some exciting small business ideas in the finance market to make it easy for you to take your first step toward entrepreneurship. So, let’s dive in.
Sub Broker Franchise – Best Fintech Business at Low Investment
Do you have a passion for the stock market but want to start small? If so, consider setting up a sub-broker franchise. In this business model, you will work as an agent for a brokerage firm.
Your job role will be to acquire and activate clients for the stockbroker. Also, you will provide clients trading and investment services on behalf of your broker.
In return, the broker pays a commission to sub-brokers.
Investment
To own a franchise, you might need to invest around 25k to 2 lakhs INR. This amount can differ depending on the chosen broker and the extent of your services.
Usually, the franchise cost covers office setup and registration fees.
Commission
The commission that sub-brokers earn can differ with different brokerage firms. You can expect brokers’ revenue sharing ratio to be between 50% and 75%.
You can increase the share of your broker’s revenue by increasing your investment in the franchise.
Earning Potential
The earning potential of sub-brokers directly correlates with the number of clients acquired and transaction volume.
In addition to the commission, sub-brokers can earn extra money by bringing in new clients. Your share for opening and activating a new client’s account can range from 300 INR to 500 INR.
You expect to make around 50K to 2 lakhs INR monthly.
Support
Almost every stockbroker supports sub-brokers, which is necessary to help them run the franchise smoothly.
You can seek advisory, acquisition, marketing, RM, and back-office support. Even some firms provide dealer and product training to their sub-brokers.
It helps them render unmatched financial services to clients.
Top 3 Brands
Angel One, Sharekhan, and IIFL are our top three brand recommendations with which you can start a sub-brokership business.
Mutual Fund Distributorship – Top Finance Business Ideas at Low Investment
Since mutual funds are mainly safe, more and more investors are turning to them. Therefore, mutual fund distribution is a promising venture for you to pursue.
You need to work as an agent of MF companies or national distributors. As an agent, you will sell their mutual funds to the public.
Also, you can choose to be a leading distributor, sub-distributor, or sub-broker.
Investment
As an aspiring mutual fund distributor, you will need some investment. First, you must pay INR 1,500 as the NISM Series V-A MF distribution certification exam fee.
If the exam is cleared, you must pay the AMFL fee, ranging from Rs. 1,770 to Rs. 23,600.
Are you thinking of setting up your office? Your expenses can reach up to INR 50k. Also, if you are considering tying up with a giant MF distributor, you must pay a one-time distribution fee.
Commission
Mutual fund distributors receive a commission as their primary income source. It depends on how many clients they bring in for their MF firm and how much investment those clients make.
For instance, your commission share is 1% of your client’s investment. Your MF firm earned INR 2 crores of revenue through your clients. In this case, your commission will be Rs. 2 lakhs.
Some MF distribution houses also offer commissions based on AUMs.
Earning Potential
The monthly earnings of a mutual fund distributor can potentially fall between 10k and 5 lakhs. These earnings depend on the mutual funds you manage and the MF investments made by your clients.
Support
Support from the MF company can help MF distributors establish and grow their business seamlessly. You can expect ARN generation, acquisition, RM, back-office, advisory, and marketing support.
In addition, you can attend your company’s webinars and training sessions to broaden your skillset.
Top 3 Brands
Our top-rated mutual fund distributors are Motilal Oswal, Sharekhan, and SBI mutual fund distributors.
Relevant Topics
Insurance Agent – Best Small Business Ideas in Finance Industry
Are you looking for an additional source of earnings? Starting an insurance agent business can be the best idea. You can work either for an insurance company or an intermediary.
As an insurance agent, your job will be to sell your firm’s or intermediary’s insurance products, be it life, medical, or general insurance.
Investment
Becoming an insurance agent is a cost-effective affair. The minimal investment you need can be around INR 10k to 75k.
It includes IRDAI registration fees, ranging from INR 25k to 75k. In addition, sometimes, you might have to pay for associated training and certification.
Commission
The commission you receive as an insurance agent is usually a percentage of your policyholders’ premium. The average commission can be approximately 10%.
You might get a 15% to 35% commission if you sell life insurance policies. And for general insurance, it can be around 10% to 20%.
Earning Potential
An insurance agent’s earning potential is highly variable. It depends on your client base, how many policies you sell, and their premium amounts.
The average earnings can fall between 30k to 1.5 lakhs per month.
Support
Your insurance firm or intermediary can provide training, marketing, and customer service support to help insurance agents understand and sell insurance products effectively.
Top 3 Brands
LIC, ICICI Lombard, and HDFC Life are pioneer insurance companies with which you can earn lucrative earnings.
Loan Agent – Top Small Businesses in Finance Industry
Do you have good networking skills? Are you familiar with different loan products? You can apply your skills and knowledge to the loan agent business.
As a loan agent, you will connect individuals needing money to lenders. Your end goal will be to sell lender’s loan policies to the customers.
Investment
Typically, a loan agent business needs relatively low capital as an investment. It can entail registration fees, license or permit fees, and office or training expenses, ranging between 10k to 50k INR.
Commission
As a loan agent, your commission is fixed based on the loan amount you help your firm secure. Usually, lenders pay around 0.5% to 1.5% commission to their loan agents.
This percentage can vary depending on the lending or financial institution and the type of loan policies you sell.
Earning Potential
You can potentially earn a substantial amount. It’s possible when you are involved in selling higher-value loan policies like business or home loans.
On average, loan agents can make 25k to 1 lakh INR or more each month, depending on loan amounts.
Support
Every reputed financial institution or lender often provides training to their loan agents. By doing this, they educate agents about their loan policies.
Moreover, you can commonly expect marketing and customer management support to network with clients seamlessly.
Top 3 Brands
SBI Bank, HDFC Bank, and ICICI Bank provide strong brand recognition and a diverse portfolio of loan policies.
Partnering with any of these banking institutions can unlock unmatched growth opportunities for your business.
Stock Broker Partner – Best Fintech Business Ideas with Low Investment
Do you want to enter the training community to earn money? Aside from a sub-brokership franchise, you can consider becoming a stock broker partner.
By investing in this venture, you will be mediating between your brokerage firm and its clients. In addition to getting new clients for brokers, you will guide them in trading and investing.
Investment
To start working as a stockbroker partner, you will need to make an initial investment. This investment can include your security deposit, exchange charges, and office expenses.
Stockbroker partners might need to incur a cost between 3k and 30k INR.
Commission
Stock broker partners receive a commission as a revenue-sharing percentage. It means you will get a share of the revenue earned by the broker through the clients you acquire.
Your commission can potentially be around 20% to 50%.
Earning Potential
The earning potential of stock broker affiliates directly depends on the trading activities of their active clients.
The more your clients trade, the higher your earnings will be. Regarding a specific range, your monthly earnings can be between 50k and 3 lakhs INR.
Support
Brokers understand that support for their new partners is crucial for a broad clientele. Therefore, they offer their affiliates acquisition, advisory, marketing, back-office, and product training support.
Top 3 Brands
Investing in our top three stock broking program picks, i.e., Angel One DRA, Motilal Oswal Digi Partner, and Upstox Partner, can help you earn extra bucks.
Referral Program – Top Fintech Business at Low Investment
In North America, around 30% of financial institutions use referral programs to attract and retain customers.
This means that there is a broad scope for you to earn extra money by participating in referral programs. You can tie up with any banking institute, brokerage firm, MF firm, or other financial institution.
You will refer clients to their financial products, investment products, loans, or insurance policies.
Investment
Participating in referral programs is relatively easy from a financial point of view. Why? You only need around 1k to 10k INR as an investment. The only costs you need to incur are marketing and networking.
Commission
Commissions you get via referral programs vary depending on the type of firm you are working with. Also, the type of financial products and services you refer to determines your commission.
For instance, by referring a client to a broking firm, you can earn about 300 INR to 1000 INR. And lending institutes might pay a certain percentage of the loan amount.
Earning Potential
The earning potential of referral agents widely depends on the volume of successful referrals.
You can earn between 10k and 50k INR as an active agent based on your network’s size and the referred financial products.
Support
Almost every financial institution offering referral programs trains its agents to network and convince clients. In addition, you can expect advisory and marketing support.
Top 3 Brands
You can refer and earn by working with Policy Bazaar, Angel One, and BankBazaar. These firms offer various financial products to refer to.
Credit Card Agent – Best Small Scale Finance Business
Do you have a sales background? Do you know what credit cards offer or how they work? If yes, becoming a credit card agent is your best venture option.
These agents sell credit cards from issuing banking and financial institutions to individuals and businesses.
Investment
Making an initial investment is vital to becoming a credit card agent. But don’t stress! The investment is relatively minimal.
You must register with the issuing bank for a sole or collaborated credit card agency. Also, you might need to incur marketing expenses. So, your total investment can fall between 5k and 10k INR.
Commission
Credit card agents typically receive a commission based on the number of credit cards they sell in a specific period.
They can earn around Rs. 200 to Rs. 2,000 by selling each credit card successfully. The commission range varies depending on the issuing bank and type of credit card.
Earning Potential
How much credit card agents’ earning potential will be is entirely tied to the number of credit cards they sell.
Regarding average figures, you can make anything between 20k to 1 lakh INR or more based on your sales volume.
Support
Top-ranking banking and financial institutes often train their potential credit card agents.
Training helps them understand what type of credit cards these institutes provide, their usage and benefits, and much more.
Aside from training, you can receive marketing and customer service tools support.
Top 3 Brands
Our top three banking institutions offering extensive credit card portfolios are SBI, HDFC, and ICICI Bank. Collaborating with them will help you add more money to your monthly earnings.
Best Fintech Business Ideas at Low Investment – Conclusion
Stepping into the finance industry can present several small-scale business opportunities with minimal investment.
Be it becoming a sub-broker, MF distributor, loan, insurance, or credit card agent, you can expect ample commission and earning potential.
Moreover, by partnering with top-ranking brands in the financial market, you can receive the necessary support and guidance for your business to thrive.