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written by | September 8, 2022

Who is DSA Loan Agent & DSA Loan Agent Registration Process

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Table of Content


When a customer needs a loan, a loan agent's role is to help them get one. They arrange for a lending institution to contact you, take care of the preliminary steps, and manage the important elements of a loan. To ensure the authenticity of the papers, they also collect and check them. 

Did you know? The minimum CIBIL score required for a personal loan is between 720 and 750.   

Who are Loan Agents?

Loan agents are often referred to as direct selling agents or DSAs. Their main objective is to connect borrowers with lenders and assist them throughout the process. They are also responsible for carrying out the required checks to make sure that the individuals requesting loans abide by the guidelines. As a consequence, everyone involved in the process gains something. Before becoming a DSA loan agent, you must go through the eligibility requirements, necessary documentation, qualification requirements, etc. 

Also Read: How to Apply for a Loan for a Travel Agency

Eligibility Criteria for DSA Loan Agent

  • To serve as a DSA loan representative, you don't need a college education in banking or finance. 
  • Anyone can apply to be hired as a DSA loan salesperson, salaried or not. 
  • You need to be knowledgeable about the subject. 
  • The only age restriction for being a DSA agent is that the individual must be an Indian adult (minimum age 18). 
  • You must be an Indian citizen. 
  • Both your credit history and CIBIL score should be good. 

Also Read: All About E-commerce Business Loan In India - How To Apply, Step-By-Step Guide

Role of a DSA loan agent: 

Loan DSAs are employed by a number of banks and financial institutions, permitting them to collaborate at their own pace and for varying hours. Bank DSAs are independent contractors who have total freedom over their schedules. They must nonetheless network and give the bank's loan leads. As a part of their overall portfolio, loan agents frequently market mutual funds, personal loans, business loans, and many other types of loans. 

Any DSA's key duties include compiling the necessary paperwork and doing initial assessments. They have a precise process they must follow when filing a loan application. After that, the request is sent to the bank or NBFC to which they are connected. 

Up until the loan application procedure is over, loan DSA representatives are also responsible for helping the client and the local bank branch or office. It expedites the entire process and gives the bank a strategic advantage and saves a lot of time. 

You will receive instructions or a training programme from the bank or financial institution to which you are submitting your Loan DSA application. You will be given an explanation of the procedure and paperwork needed for every type of debt provided by the bank you are partnering with. These techniques are simple to understand, and you'll soon start getting paid from the credit applications you send to the bank branch to you're connected to. 

The opportunity of DSA Loan Agent: 

If you don't have any prior experience, you can still work as a loan agent. You have the option of working independently. You will help these borrowers get loans by helping them with anything from application completion to additional paperwork. You may consider working for a financial institution or a mortgage firm if you're unsure about starting your own business. As a loan consultant, you will help potential clients get credit. You won't need to get a professional license if you decide to work as a DSA agent. Nonetheless, the majority of states require a licence, therefore you must fulfil these conditions in order to start this lucrative profession. Your job will be similar to a salesperson's.

Also Read: Comparing Business Loan Interest Rates - How to Identify and Apply for the Best Business Loan

Advantages of becoming a DSA agent: 

  • A college degree is not required to operate as a DSA agent.  Any educational background is acceptable for a DSA loan agent. 
  • This job offers flexible working hours. 
  • DSA loan agents could be individuals who are still pursuing their education as there is no requirement for higher education. 
  • You receive a commission for every loan received using your referral code. With a rise in the loan amount, your commission will increase. 

Benefits that customers get by choosing to apply for a loan from a DSA referal

  • The agent can quickly and efficiently address any problems you might be experiencing. 
  • When it comes to the loan program you're searching for, there are several options available. A DSA agent will inform you about various loan schemes and you can choose the one that best suits your needs. 
  • You can contact the DSA for any after-sales support you might need. 

DSA Loan Agent Registration Process: 

If you diligently follow the procedures below, you may easily register for DSA online

  • Use the bank's or NBFC's official website to complete your application 
  • Your bank or NBFC will get in touch with you to confirm your documentation for DSA associate registration after you complete the payment and submit your application. 
  • The legal department of the bank or NBFC will start the proper procedure by examining your supporting documents, past credit record, and credit score. 
  • Once they have reviewed all of the supporting papers and pertinent information and are satisfied with your application, the bank or NBFC will send the DSA contract. 
  • The contract has to be signed and then conveyed to the bank. 
  • You will receive a DSA loan agent code from a bank or financial institution. 

You join the DSA partnership for the bank or NBFC after you receive the DSA loan agent code. You'll require that code in order to submit the loan paperwork. In return, you will be paid a commission on any loans that are acquired using your code's recommendations. You may apply for a DSA loan agent on many financing sites to make the application procedure simpler.

Also Read: Loans for Startups in India - Gudie on How to Apply for a Startup Business Loan, Eligibility & Benefits

Conclusion

An individual who acts as a referral consultant for a bank or NBFC is known as a direct selling agent or DSA. A DSA's responsibility is to locate new clients for the financial institution they serve. DSAs will search for individuals who are looking for a loan to do this. The loan application procedure is then moved ahead when these leads are forwarded to the relevant bank or NBFC. In exchange for the DSA's work, a commission is given. This payment is based on the kind and size of the loan. Furthermore, this dividend is a fantastic method to make a little additional money. DSAs are referred to as business associates in rural regions. 

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FAQs

Q: How could I improve my CIBIL score?

Ans:

You must repay all of the current or prior debts you have taken out in order to improve your CIBIL score. Additionally, you must continuously pay your loan's EMI.

Q: Can CA become DSA agents?

Ans:

A CA can pursue a similar process in order to become a DSA loan agent. Being a DSA agent is now proving to be a lucrative additional career option for CAs.

Q: What are the skill sets demanded to be a DSA loan agent?

Ans:

To become a DSA loan agent, no specific educational qualifications are required. However, when speaking with the customer, you must be convincing and skilful. You must be well conversant with Indian loan processes.

Q: Is there any age limit on being a DSA agent in India?

Ans:

The only age requirement to work as a DSA agent in India is that you must be an adult Indian citizen i.e., above the age of 18.

Q: Do DSA loan agents get paid on a salary basis?

Ans:

Agents for DSA loans do not get a salary. Instead, they receive a commission for every loan obtained via them. DSA agents have the option of receiving their commission in the form of monthly instalments or a lump sum amount. The institution will determine the payment method.

Q: Can I collaborate as a DSA loan agent with more than one bank or NBFC at the same time?

Ans:

You cannot simultaneously become a DSA loan broker for more than one bank or NBFC. Following completion of your online DSA application, the bank or NBFC will send you an agreement to comply with. After you sign the agreement, you start working for them on commission. Nonetheless, you are still free to work in any other industry or profession.

Q: Is a DSA loan agent a lucrative career option?

Ans:

Yes, provided you possess the qualifications to work as a DSA loan representative. It makes no difference what kind of debt it is. You gain from the loan if it is obtained using your reference ID. Depending on how many clients you attract; your income may rise or fall over time.

Q: How much do DSA agents earn per referral?

Ans:

The commissions on personal or business loans are the main source of income for the DSA loan agents. They typically get a commission of 1% of the overall loan amount. The commission percentage may increase in relation to the loan amount. Loans over ₹ 30 lacs may generate DSA agents a commission of up to 1.5 % to 3 % of the overall loan amount, but it depends entirely on the partner bank.

Q: Who is the DSA loan agent?

Ans:

Any individual who serves as a referral consultant for a bank is known as a direct selling agent or DSA. A DSA's responsibility is to locate new clients for the financial institution they serve. DSAs will search for individuals who are looking for a loan to do this.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.