Direct selling agents are the individuals who work on referral bases for any financial institutions or banks. They are appointed by banks or NBFCs to identify and find potential customers. The DSA directs such customers to the concerned financial institution, and the loan is then processed forward. If the loan is successfully passed, the DSA receives a commission from the institution. The amount received by the DSA is usually the percentage of the availed loan amount. DSAs are also popularly known as Business Correspondents or loan officers.
What are the benefits of becoming a Loan DSA?
The benefits of becoming a Loan DSA have been mentioned hereunder for your quick reference:
- There are no time constraints or job commitments
- You can work individually or create a team of your own.
- You can earn extra income by working as a DSA alongside your Job or employment.
- Helps develop an excellent social network
- No initial deposit is required to become a DSA: No set-up charge and no investment.
- You can achieve attractive payouts along with incentives.
- No higher education is required to become a Loan DSA.
- You can work on flexible terms or a part-time basis.
- It is a good avenue to become an entrepreneur with no additional costs and risks.
How can you become a Loan DSA/what is the process of becoming a Loan DSA?
Becoming a Loan DSA involves some small steps reproduced hereunder:
- Visit the financial lender of your choice and submit your registration application.
- Make a payment of the registration fees.
- The financial institution shall then contact you and ask for further documentation.
- Next, due diligence is carried out, and the credit history is verified.
- Followed by background verification.
- A DSA agreement along with stamp duty is prepared.
- Fill in the required details, sign and submit the agreement.
- After that, a DSA code is issued.
- Upload the loan documents once you obtain the DSA code.
What are the opportunities for Loan DSA in the years to come?
The demand for different kinds of loans has increased; people are increasingly availing of home loans, personal loans, auto loans, business loans, etc. At the same time, with a drift in technological advances, the entire process of lending has moved online.
The demand for credit cards is rising, especially among the age group of 25 to 30 years. In addition, demand for credit has also been seen from non-metro cities.
Hence, loan DSAs are required to ease the entire process. People can approach them to help with their queries, documentation, and loan application.
A loan DSA is a lucrative option. The payment received is in terms of the percentage of the loan availed. DSA is also known as business correspondents or loan officers. They find customers interested in the loan application, forward them to the financial institutions. They act as an intermediary and support the transaction from the commencement to the end of the chain.
With the increase in demand for credit, the need for loan DSA has significantly increased. Thereby the marketplace is open and rewarding.
To wrap it up, the services of a loan DSA are beneficial for the financial institutions and the consumers at large. No special qualifications are required to proceed; all you need is the basic knowledge of finance and the ability to convince with good interpersonal skills and efficiency.