The Indian loan industry is rapidly evolving. Not only does it have an increasing base of satisfied clients, but it is also reaching out to those who have not been included in its ambit. DSAs are revolutionary. They act as the link between financial institutions and individuals. Whether you’re in the market for a specific home loan, or are grappling with the many loans available to you, you will be served by a Direct Selling Agent. They provide borrowers with full and personalized support, fostering brand trust. With their unique approach, it’s a win-win situation for small lenders and industry titans alike as they can both grow their businesses significantly with the loans availed of.
Who is a DSA?
Fundamentally, a Direct Selling Agent (DSA) is an expert intermediary who works for financial institutions, such as banks and non-banking financial corporations (NBFCs). A Direct Selling Agent identifies potential customers for the financial institution he represents. He guides borrowers through the entire loan application process. He ensures that all necessary documentation is accurate and available. His role is to connect borrowers with lenders and close deals with them. Some of the products a DSA sells include credit cards, house loans, and personal loans. For his services, the Direct Selling Agent receives a commission determined by the volume of business he generates or the number of products he sells.
What is a DSA Loan?
A DSA Loan refers to a loan that a DSA sources and processes for new and existing clients. He does this on behalf of a bank or financial institution. There are various types of Direct Selling Agent loans a professional can help clients with. These are home loans, personal loans, car loans, business loans, education loans, gold loans, and loans against property. The terms, conditions, and eligibility criteria that apply to loans at bank branches or other online platforms also apply to DSA loans. In the case of DSA loans, the lending institution determines the interest rates, loan approval process, repayment terms, and necessary documentation.
Let’s consider the various types of DSA loans:
- Personal Loan: Anyone who requires money for immediate financial needs can take out a personal loan. They may use the money to pay for their children’s education, consolidate debt, pay for weddings and vacations, buy a dream house, pay for medical emergencies, or renovate their home. Personal loan DSAs help prospective clients with the application process and advise them on how best to use the loan amount.
- Home Loan: In India, buying a house is a considerable expense, so home loan DSAs are always in demand. DSA Loan Agents dealing with home loans help prospective clients get the best interest rates and repayment terms. They scrutinize customers’ fixed obligations to income ratio (FOIR) and calculate the monthly EMI they are expected to pay.
- Business Loan: Business loan DSAs evaluate a business’s financial statement, net profit, and other bank details before agreeing to provide them with a business loan. These professionals also communicate with several stakeholders and investors in the client’s company.
- Loans Against Property (LAP): A loan against property is a secured loan that financial institutions offer against commercial or residential properties that the borrower owns. Based on the valuation of the property and if the title deeds are accurate, a Loans Against Property Direct Selling Agent will approve a loan to the borrower.
- Insurance Loan: Another category of direct sales associates, Insurance DSAs, offer insurance policies and other products to potential customers. They sell a range of securities such as health, home, travel, and auto insurance policies.
- Gold Loan: Banks and NBFCs offer gold loans against gold jewelry or gold coins that customers pledge as collateral. These are secured loans. DSAs help borrowers with the documentation process. They also advise them on the loan-to-value ratio and repayment terms.
- Credit Card Loan: A credit card Direct Selling Agent sells credit cards to customers. He also helps prospective customers get the lowest interest rate, based on their credit scores. He assists clients with low credit scores to get credit cards.
- Bank Loan: A Bank DSA Loan Agent handles several products such as credit cards, loan products, savings accounts, and insurance.
- Education Loan: These loans are given to students pursuing higher education either in India or abroad.
How to Register as a DSA Loan Agent?
- The applicant can choose a bank or NBFC and visit its website.
- Here, he will submit his application.
- He will be asked to pay a fee at this stage.
- The bank will then scrutinize the application form and ask to verify the applicant’s documents.
- The bank’s legal team will then examine all the documents, as well as the applicant’s credit history and credit score.
- If satisfied, the lender will send the applicant a DSA agreement.
- The applicant should sign and submit the agreement to the lender.
- He will then receive a unique Direct Selling Agent Loan Agent ID.
What Kind Of Training Is Required To Become A Loan Agent?
Once selected, a DSA Loan Agent is trained in the following:
- A thorough understanding of the different loan types lenders offer, interest rates, loan terms, eligibility criteria, and repayment structures.
- An in-depth knowledge of credit cards or insurance products that are part of the lender’s product range.
- Good communication skills, paving the way eventually for excellent sales skills.
- Rapport-building with potential borrowers to foster trust and dependability.
- Enhancing customer service skills, to be a good problem-solver and build relationships with potential customers.
- Gathering knowledge on the regulations set by the Reserve Bank of India and other financial institutions related to DSA practices and loan products. This helps sharpen the technical skill set of a DSA.
Documents Required for DSA Registration
The following documents are required to register as a Direct Selling Agent:
- Identity Proof: Copy of either PAN card, Aadhar Card, Passport, Voter ID card, or driving license
- Address Proof: Copy of either Aadhar card, Passport, Voter ID card, Utility bill (electricity bill, water bill, etc.), Bank statement or passbook
- Educational Qualifications: School leaving certificate, Graduation certificate, Post-graduation certificate, Professional degree or diploma certificates (if applicable)
- Professional Certifications: Copies of professional certifications related to the banking or financial industry
- Proof of Business: If the candidate registers as a DSA Loan Agent on behalf of an existing business entity, he will be required to provide the necessary documents, such as a Shop establishment certificate, GST (Goods and Services Tax) registration certificate, or Partnership Deed
- Passport-Sized Photographs: A few recent passport-sized photographs for identity verification and record-keeping
Eligibility Criteria for DSA Registration Process
Given below are the eligibility criteria for the registration process of a Direct Selling Agent:
- The applicant must be a citizen of India.
- The applicant should be a minimum of 18 years.
- He or she can be salaried or non-salaried, self-employed or business owners.
- Good CIBIL scores and credit history are requisites.
- The applicant should provide the required documentation when asked for.
- The applicant should have a thorough knowledge of the lender’s products that he will sell. A degree in finance or banking is not mandatory.
- Besides the above, specific loan products may call for particular eligibility criteria.
Conclusion
The vibrant banking and NBFC industries need proactive and energetic individuals who make sales happen. Typically, a DSA Loan Agent acts as a middleman between borrowers and lenders. They offer help, support, advice, and knowledge to potential customers. A DSA’s power of persuasion, technical expertise, market knowledge, and strong client contacts make him a high-value provider. In their own way, DSAs significantly impact their client’s financial security and bring about the growth of financial institutions and banks.