Business Idea: Post Office Franchise Scheme, eligibility, income

A new business idea got introduced by India Post Office at Rs 5,000 investment. Read this article to know how you can apply, earn and be eligible for India Post Office Franchise Scheme

India’s unemployment crisis is not concealed from anyone. With millions of people striving for better jobs, it’s much riskier to become an entrepreneur. Since government jobs are not easy to get, here is a business idea which can help you earn a living by cooperating with a government institution.

Being the largest post office network, Indian Post Office facilities are easily available everywhere. You can avail of facilities such as opening a small savings account, sending money orders, stationary and stamps. However, the government is planning to expand the facilities of the post office by introducing the Post Office Franchise scheme.

Currently, there are more than 1.5 lakh post offices across India yet many areas are deprived of post office facilities. Considering the thought, India Post has initiated this scheme of giving a Franchise Scheme to the Post Office. This scheme can help you create a sustainable business model and also generate some good earnings. Let’s check out some of the important concerns about this scheme.

Also read | Post office staff swindles Rs 96 cr of public money in saving schemes: CAG

What is the Post Office Franchise Scheme?

According to this scheme, a post office provides the facility of two types of franchises: a franchised outlet and a franchisee of postal agents. You can opt for any of these franchises. Under outlet franchisee, it can be generally opened in areas without post offices, whereas Postal Agents franchises have agents who deliver stationary door-to-door and postal stamps in rural and urban areas.

How to apply for the Indian Post Office Franchise Scheme?

You have to apply for a post office franchise via the official website of India Post. Then, you will have to download the form from the website. After downloading, you should fill out and submit it. Further, you should read the India Post notification carefully, and understand the terms and conditions before applying. Later, once you are selected, you will have to sign an MoU(Memorandum of Understanding). Thereafter, you’ll be eligible to serve the customers.

Are you eligible for the Post Office Franchise Scheme? 

Although the eligibility criteria for the Post Office Franchise Scheme are simple, given below are the conditions that need to be fulfilled.

• The applicant’s age should be minimum of 18 years.
• None of his or her family members should be working in the India Post Department.
• He or she must have studied till 8th from a recognized school.

How much would the franchise cost?

Outlet franchisee is relatively cheaper than postal agent, as it mostly involves servicing. Contrastingly, postal agents are expensive because more money is spent on purchasing stationery items. If you want to open a post office outlet, you must have a minimum area of 200 square feet. Also, five thousand rupees should be deposited as a security amount.

How much income can be earned through the Post Office Franchise scheme?

Though there would not be any fixed income, franchise owners will get a commission amount for their services. The prices will differ on service, and are as follows:

Services offered	Commission (Rupees per transaction)
Booking- Registered articles	Rs 3.00
Booking - Speed Post articles	Rs 5.00
Booking- Money Order (Rs 100-200) Condition : Applicable if franchise agents will not book any money order less than Rs 100.	Rs 3.50
Booking- Money Order (Rs 200 above)   Condition : Applicable if franchise agents will not book any money order less than Rs 100.	Rs 5.00
Booking - Registered articles and Speed particles above 1000 per month	20 percent of additional commission for both articles.
Sales - postage stamps, postal stationary and money order forms	5 percent of sale amount
Retail services - sales of revenue stamps, central recruitment fee stamps	40 percent of commission earned by Department of Posts (rounded off in rupees to be 40 percent or less)