Top Small Village Business Ideas in India For The Ones Looking To Start Their Venture

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Planning to start a business in the village but confused about which one will be best? We got you! Here are the top village business ideas for you.

A village business is characterized by a strong identity, a sense of community, and a community focus. It is important that businesses that fit this model are carefully planned and thought out and should not just be “guesstimates” of what the community and the village will benefit from.

Village businesses are often based on local industries, services, and even local knowledge. In India, about 65% of the population lives in village areas and indulges themselves in agricultural activities but some want to start other businesses for a better source of income.  

Why Start A Village Business?

Starting a Village Business can be an excellent alternative to a traditional career or a traditional job. It is a viable way to generate income, provide for your family, work in an environment that you enjoy, be active, and make a difference.

Most of the people live in one of the two nearby cities and the rest of the village relies on farming to generate their incomes.

The lack of infrastructure makes it difficult to attract outsiders in the rural areas. The lack of industry and the presence of very poor transport infrastructure in the area leave a lot of people struggling to find jobs. 

To fight this struggle many people are drawn to the idea of creating a new business due to the passion and desire to have their own business and the freedom that it can bring in a particular area, in this case, a village. A village business gives benefits like:

  • A good source of income
  • Employment generation
  • Enhance the status of living 
  • Make villages self-reliant
  • Less capital investment

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Village Business Ideas in India

If you are interested in starting a business in a rural area you can choose from one of the ideas provided below.

Garment Supplier

As small village people mostly go to cities to buy clothes, opening a shop in village market can result in big gains. You can come in contact with some wholesale businessman to get your clothing items at a low cost and sell it at the retail rate.

Garment Supplier

Vendor

You can certainly go for this option if you have farming land that produces fruits and vegetables. Opening a shop will help you sell your leftovers that were not able to be sold in the mandi. 

vegetable vendors

Poultry Farming

It is a profitable business with low investment as the demand for poultry products is huge in rural areas, along with selling in the village the products can also be sold in big cities.

Poultry Farming

Tuition

The teaching profession is said to be one of the best because of the income it provides by sharing and gaining knowledge. You can open an online tuition center for village students and help them to educate and prepare them for the future.

Tuition

Small Manufacturing Units

By getting raw material, you can start small manufacturing units like Agarbatti making, Matchsticks making, Candle making, etc. The supply of these items gives a huge sale in urban areas.

Small Manufacturing Units

Shop for Fertilizer and Seeds

The village economy in a very rural area is primarily based on farming and they always need a good fertilizer or seed supply, so opening a fertilizer and seed shop can be helpful. It does not require much investment. 

Shop for Fertilizer and Seeds

Electronics Store

A shop with all the new electronics like mobile, computers and accessories related can be a huge success as everyone in this era owns a phone or wants one. You can also include sim recharge services.

Electronics Store

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Dairy Centres

You can open a dairy store because the milk supply is easy to get in rural areas. Also, if you own cattle such as cows, buffalo and goats, a dairy centre will be a feasible option.

Dairy Centres

Pharmacy

A chemist shop is a necessity whether it is a city or a village. If you have a nice knowledge about medicines you can open a medical shop. Pharmacy is a source of good income.

Pharmacy

Car/Bike Servicing

You can also opt for servicing vehicles if you have complete knowledge about their parts and accessories.

Car/Bike Servicing

Transport

Transportation of various products made or produced in villages has to be done in big cities, you can get a truck or tempo for it to start a business and get in contact with a needy business to supply the products.

Transport Business in India

Jewellery Making Workshop

People living in villages often know about jewellery making, so they can take orders from jewellery shops in cities to provide them with handmade jewellery.

Jewellery Making Workshop

Also Read: 12 Business Ideas in Assam you must see before starting

Loans For Village Business

Many people want to have small businesses in rural settings, but not all have access to capital. The loan fund provided by the government or financial institutions assists people in rural areas to establish or improve a small business in order to gain access to capital, increase income, and create employment opportunities in their community. By providing access to capital, this fund helps increase the standard of living in rural areas. 

How To Apply For Business Loan?

A business loan must be applied with proper knowledge. You can get help from various Government schemes or financial institutions, who will thoroughly explain about the same. The steps for applying for the loan are:

  1. Get all the information you can and check the eligibility for the nature of the business you want to start.
  2. If you are applying for a government scheme, you can check online the required documents and other related information.
  3. While applying for a loan in banks, the procedure will be explained to you.
  4. Submit all the documents.
  5. Wait for the loan approval, do not forget to get information about interest on the loan.

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Who can Apply for the Loan?

The eligibility criteria are defined for those who can apply to get approval for the loan for small businesses.

  • The person applying should be a citizen of India
  • The minimum age prescribed is 18 years while 65 years is the maximum age to get a loan
  • For applying for the loan, the bank statement of the last 6 or 12 months is also required

Documents Required for Applying for the Loan

  • Loan application form with all details and photographs
  • KYC Documents
  • A thorough business plan
  • Aadhaar card
  • Voter ID
  • PAN card
  • Ration card
  • Address proof
  • Last 6 months bank statement
  • Category proof
  • And other required documents

Government Schemes for a Small Business Loan

The Government of India provides various schemes under which you can easily apply to get a loan. Some of the benefitting schemes are:

  1. MUDRA loan- this loan is provided for those who want to start a small non-farm business. The loan can be applied in any financial institutions such as commercial banks, government banks or rural banks. The application for this loan can also be filled online. An applicant can get a loan of up to ₹10,00,000 without any collateral security. No processing fee is charged and a concessional interest rate is provided to women. The loan can be paid off in 12 months to 5 years depending on the amount.
  • The minimum age of the applicant should be 18 years and the maximum should be 65 years
  • There are a total of three types of Mudra loans; SHISHU (loan up to ₹50,000), KISHORE 

(up to ₹500,000), and TARUN (up to ₹10,00,000)

  1. MSME loan in 59 Minutes- this scheme was launched in 2018 for availing the loan from ₹1,00,000 up to ₹5 crores. It is a collateral-free loan for small, medium scale businesses. The government has made an online portal where you can follow their guide and apply for the loan, if the loan gets approved the money will be transferred to your account in one week. The rate of interest is 8.5% p.a.
  2. SMILE Scheme by SIDBI- Small Industries Development Bank Of India introduced the SMILE scheme in 2015 to assist small businesses with soft loans to start a business. The loan amount can reach up to ₹25 crores. The rate of interest is 8.25%.
  3. Credit Guarantee Fund Scheme- the scheme of the government of India provides collateral-free loans to new as well as existing businesses who are in retailing, tuition or educational or training institutions. 
  4. Stand-up India Scheme- this scheme is to make India self-reliant with self-employment. It is primarily for backward category castes (ST/SC) and businesswomen who establish manufacturing or trading firms.

Also Read: 15 Top Most Business Ideas in Kolkata

How Lio Can Help?

Lio is a mobile integrated app that helps in maintaining records related to businesses. You can make folders, templates, and customer lists. It is a very easy app and is most suitable for small businesses for managing their day-to-day business activities.

They can store all the information in one place in different categories. As a small businessman in the village, you would not like to spend much money in hiring a person for business management activities so Lio comes as a rescuer.

It provides features for inventory management, time management, customer and supplier management and many more valuable features make it the finest.

Not downloaded the Lio App yet? Here is how you can start with Lio App.

Step 1: Select the Language you want to work on. Lio for Android

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Step 2: Create your account using your Phone Number or Email Id.

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Verify the OTP and you are good to go.

Step 3: Select a template in which you want to add your data.

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Frequently Asked Questions(FAQs)

How to get a Loan under Government Schemes?

You can apply online by registering on the government’s site or visiting any bank that provides the loan under the schemes.

Which Small Business is Best in the Time of Pandemic?

It is not good to travel in the time of a pandemic but many villagers have to buy medicines from cities because there is no suitable chemist in the village, opening a pharmacy is a great option.

What is the Benefit of Starting a Business in a Village?

Most importantly it helps in increasing employment opportunities in the village. It also enhances the status of living. 

How to get Capital for Starting a Village Business?

You can apply for the loans provided by the government and banks and take full advantage of the schemes but to get sanctioned for the loan you will have to qualify for the eligibility criteria.

What are Some other Institutions to get a Loan from?

Institutions like Small Finance Banks (SFBs), Micro Finance Institutions (MFIs), and Non-banking Financial Companies (NBFCs) help the new business with a source of capital.

What Are Some Best Ideas for a Village or Rural Area Business?

Many businesses are there that can lead to huge success in the rural area like, pharmacies, clothes shops, general stores, seed and fertilizers suppliers. 

Is Getting a Loan for Business a Good Choice to Make?

There are a lot of benefits that you can get from taking a loan, but more than anything, it can provide you with a reliable source of capital to invest in the business to make it prosper.

You have a lot of different options when it comes to finding a loan. These types of loans can be very beneficial to both individuals and businesses.

What is the Importance of Village Business in a Developing Country like India?

Businesses in rural areas are especially important for providing employment to young people, improving the economic conditions of the village and for encouraging the creation of new businesses.

However, most of these businesses are small and often poorly resourced and so they often go under when economic conditions are bad.

Conclusion

The need of owning a business is increasing as unemployment is growing and without any proper skill and education getting a job is very difficult. Small businesses that you can start in India, especially in rural areas can help generate employment and have positive effects on the overall economy.

Multiple small businesses in rural areas can significantly change the local standard of living by increasing local income and buying power.

A village business can provide the rural community with a sense of local ownership, economic independence, community, and economic and environmental sustainability.

Also, a village business may give rural women a chance to run a business and work on their own. The above article provides some important pieces of information about business ideas in India and loans for them. 

I hope this article gives you ample business ideas that can be done in a village.

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About the author

Ashutosh Bhatt

Ashutosh joined Lio as the marketing manager and has played a significant role in our growth. A traveler at heart, you might just catch him on a flight to any exotic countries around the world when he isn't busy ranking websites.

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By Ashutosh Bhatt