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.
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.
The DSA doesn’t just get potential leads. Here are other things that DSA agents do:
Benefits that consumers get by opting to apply for a loan via a DSA
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:
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