• DSA Loan Agent

    Ever been in a position wherein you apply for a loan from a bank, not directly with the bank but through an agent?

    Ever wondered why this person is trying to get you to apply for a loan when you can do it by visiting a bank or a non-banking finance corporation (NBFC)?

    Well, for starters, more often than not, this is not a scam. In fact, people who help you procure a loan from a bank or an NBFC are direct selling agents or DSA.

    Who is a Direct Selling Agent?

    A direct selling agent or DSA is a person who works as a referral agent for a bank or NBFC.

    The job of a DSA is to find potential customers for the bank they represent. To do this, DSAs will look for people who are in the market for a loan. These leads are then directed to the concerned bank or NBFC and the loan process is taken forward.

    For the effort put in by the DSA, a payout is provided. This payout is a percentage of the type of loan and the loan amount. And this payout is a great way to earn a little extra cash. In rural areas, DSA’s are known as business correspondents.

    What Does a DSA Do?

    The DSA doesn’t just get potential leads. Here are other things that DSA agents do:

    Advantages of Being a DSA or a Business Correspondent

    • You can earn additional income. The amount you earn will vary from lead to lead.
    • You can run your business with minimum cost with very little risk.
    • Flexible working hours.
    • Higher education is not a requirement.
    • Your training is generally provided by the bank or the NBFC.

    Benefits that consumers get by opting to apply for a loan via a DSA

    • Any concerns you have can be easily and quickly addresses by the agent.
    • You have a wide variety of options to choose from when it comes to the loan product you are looking for.
    • The DSA is available if you require any after-sales service.

    DSA Registration Process

    It goes without saying that there is a process that needs to be followed when it comes to becoming a direct sales agent. A person just cannot wake up and start selling loans from a bank. You will have to register first.

    Various banks, NBFCs, and lending platforms have their own registration process. The steps that are common are:

    1. Visit and Submit your application to the bank, NBFC, or lending platform.
    2. Make the necessary payment.
    3. Once the payment has been made, you will be contacted by the bank, NBFC, or lending platform and will be asked to furnish certain documents.
    4. Post this, your documents will be verified, a legal team will start a due diligence process, and your CIBIL score and credit history will be checked.
    5. If there are no problems with the background check, a DSA registration agreement with the right stamp duty will be sent to you.
    6. Fill in the required details, sign the agreement, and submit it.
    7. The DSA code will be issued to you.
    8. Once you receive the code you can start uploading loan documents.

    Documents required for DSA Registration

    Given below is the list of documents you will have to submit for DSA Registration:

    • Proof of identity such as PAN, Aadhaar, passport, voter id, etc.
    • Proof of address such as utility bill, Aadhaar, passport, etc.
    • Details of your bank transactions for the last three months.
    • Form 16 or Income Tax Returns details.
    • Education qualification certificates from both school and college.
    • Firm’s registration details if you are applying to an institution.
    • GSTIN details only if applicable.
    • Two passport size photographs of yours.

    Eligibility criteria

    • You can be a salaried or a non-salaried individual.
    • You must be a citizen of India.
    • You do not need any degree in finance or banking.
    • You must be aged 18 years and above.
    • You must have a thorough knowledge of the products you will be selling.
    • Your credit score or CIBIL score must be high.

    FAQs on DSA Loans

    1. Can I represent multiple banks or NBFCs as a DSA agent?
    2. No, you will only represent one bank or NBFC as a DSA agent and work to sell their products to the customers.

    3. Who will pay me? The customer or the bank?
    4. You will be paid by the bank in the form of commission. Based on the number of products sold by you, your commission will be decided. More the selling, higher will be your commission.

    5. What skill sets do I need to become a DSA agent?
    6. Though you do not need any particular skill set, you need to be convincing coupled with a thorough knowledge of the loan scheme and good communication skills to become a DSA agent.

    7. Can a woman become a DSA agent?
    8. Yes, if a woman meets the required eligibility criteria and has good knowledge of the loan product and communication skills, then she can also become a DSA agent.

    9. I am a chartered accountant. Can I become a DSA loan agent?
    10. Yes, you can certainly become a DSA loan agent if you are a chartered accountant.

    11. Will I be issued a license if I become a DSA loan agent?
    12. Yes, you will be issued a license if you become a DSA loan agent.

    13. I am fresh out of college. Can I become a DSA loan agent?
    14. Yes, you can submit applications to become a DSA loan agent if you are a fresher.

    15. My credit score is low. Will I be able to become a DSA loan agent?
    16. It will be difficult for you to become a DSA loan agent if your credit score is low. You must ensure your credit score is high if you wish to be eligible to become a DSA loan agent.

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