Difference between Getting a Loan Traditionally Vs. Personal Loan Agent

More consumers are now relying on personal loans for big purchases. They prefer paying this back in the form of Equated Monthly Installments known or EMIs. You can use the funds borrowed via a personal loan to meet any shortfall you experience, like education, purchasing a car, and medical emergencies. 

The traditional way to apply for a personal loan is to visit the lender’s office. Otherwise, you can contact a personal loan agent to help you out in the process. This article will be worth reading if you are looking for a lending option. The comparison between getting a loan traditionally and from a loan agent will help you decide the best. 

Understanding a personal loan

Personal loans are funds borrowed from a financial institute or a bank to meet personal needs. Lenders look at factors, like credit, income level, repayment capacity, and employment history to analyze someone as a borrower. 

A personal loan is unsecured. So unlike a car loan, it is not secured against any collateral like gold or property. You will not lose any asset in case of a default. Since the lender is at greater risk here, they will charge higher interest rates. Defaulting on a personal loan will be reflected in the borrowers’ credit report. It will make applying for a loan difficult in the future. 

The lending institute does not interfere in how you use the borrowed funds. You can use the funds for anything, like education, renovating your house, marriage expenses, buying home appliances, or meeting an unexpected medical emergency. You can also use the funds to invest in the business, pay the down payment for a new property, fix your car, and many more. You can use it for anything.

The eligibility criteria vary from lender to lender. However, the general requirements like age, income, occupation, repayment capacity, and more remain the same. Whether you are self-employed or a salaried individual, you must have a regular income source to avail a personal loan from any bank. Your credit history and the organization you work in also impact your eligibility as a borrower. The time duration of repayment can be anywhere between 1 to 5 years. 

Perks of taking a loan traditionally

Let us now check out the advantages of getting a loan traditionally below:

  1. Less paperwork

If you apply for a personal loan traditionally in the online mode, the process is 100% paperless. You have to upload the scanned copy of your documents on the applicant’s online portal and receive the funds in your bank account post-approval. The approval process is quick with limited documentation. 

  1. Time-saving

There is no need to visit a bank or lending institute physically. You can apply online from the comfort of your home. Go to their official website and apply after checking the eligibility. You will get the funds if you meet the eligibility criteria.

  1. Comparison of different lenders

You can visit the websites of several lenders and compare their interest rates before applying for anyone. Compare them for repayment time, eligibility criteria, additional charges, and EMI plans. You can get the best lender after proper research. 

  1. Receive funds immediately

You will receive funds instantly if you meet the lender eligibility criteria. If all your paperwork is complete, you can expect a quick distribution of funds. Submit your form online and get approved quickly. 

Perks of getting a loan from a personal loan agent

Loan agents generate leads that find borrowers for a lending institute. They help the applicant throughout the process conduct a background check to verify all the documents. Seeking help from a loan agent has the following advantages:

  1. Loan services at the doorstep

You get doorstep services through a loan agent. They come to meet you in person at your home or office to collect documents, clarify doubts, take signatures, and more.  

  1. Customer support

A loan agent guides the customer at every step of the loan application, approval, and fund disbursal. You get satisfactory services due to the customer-centric approach. They are trained to solve all the queries of the customers. 

  1. Help for loan approval

You will receive end-to-end assistance from a loan agent. They will also guide you to take remedial steps if you have a low credit score. Loan agents work with multiple financial institutes. So they will help you choose the best option, as per your situation and requirements. They will maximize the loan approval chances by lending with the hassle-free eligibility criteria. 

Conclusion

Now that you have read the benefits of applying for a loan traditionally and through a personal loan agent, choose the one best suitable for you. Different people will select different approaches in varied situations. To get more details regarding a personal loan agent kindly visit Andromeda and submit your details.

How To Become A Personal Loan Agent ?

Do you aspire to become a Loan agent but do not know how to accomplish that goal? Then it would be best if you weren’t discouraged since below are all the things you need to know about being a Loan agent and how you can complete the DSA Partner Registration and become a Loan Agent yourself with ease.

Who are Personal Loan Agents?

When a consumer needs a loan, a Personal Loan Agent can help them out. They’ll get you in touch with a lender, take care of the early steps, and keep an eye on all the parts of a loan. In addition, they collect and evaluate documentation to ensure its credibility.

Loan agents are sometimes known as DSAs or direct selling agents. Their principal objective is to connect those in need of financial assistance with lenders and offer them help during the loan application procedure. One of their responsibilities is to ensure that the people applying for the loan obey the requirements by doing the appropriate checks. This is a profitable situation for everyone involved in the process.

When you need a loan, a Loan Agent agent links you with a lender, does all the initial checks, and collects all the necessary paperwork. They also verify and ensure that the documents given are accurate and authentic.

How To Ensure That A Candidate Is Eligible To Be A Loan Agent?

If you are a working professional or a company owner, you may become a Loan Agent. There is no professional educational needed, and you’ll need to know the basics of a loan approval process. It’s illegal to join if you’re under the age of 18. You must be an Indian citizen. Your CIBIL score must be reasonable, and your credit history must be clean.

Advantages Available To A Loan Agent:

As a bonus, you’ll get to cash in on some big business deals and that too with a freedom of being your own Boss. Become a part of a financially promising field. When employed as a company partner, you’re free to work on your ventures. Gain the flexibility to make new professional connections that may lead to a stable source of income for the rest of your life. All of the banks and NBFCs we work with are connected to us.

The Potential of a Loan Agent

You don’t need a lot of prior work experience to get a job as a loan agent. If you so want, you have the option to work alone. Banks and mortgage firms are good places to work if you’re not confident about going it alone. Your job as a loan agent is to find the money for customers. You will not be required to get a real estate license if you opt to work for someone else. However, to begin this rewarding job, you will be required to obtain a commission from your state of residence. You’ll have a lot of the same responsibilities as a salesperson.

Registration of Bank Loan Agents

Registering as a loan agent for prominent banks, NBFCs, and other digital lenders is simple and completely free. As a direct sales representative, each bank has a specific protocol. To apply for a position, you must complete the DSA Partner Registration. The registration procedure for each financial institution is unique, although the process is relatively standard.

  • To apply for a loan, fill out and submit the Loan DSA form ordinarily accessible on the bank’s website. If you can’t find the DSA form online, stop by the local branch

  • After receiving a phone call or email, you’ll need to provide a series of papers

  • A legal staff would verify your credit history when the documents have been validated

  • You may be contacted for an interview if everything goes well

  • After that, you may formalize everything by signing a contract with the bank or NBFC

  • A lending agent receives either a DSA code or a license

  • Applications should be submitted according to your particular bank’s specific format

Compensation for a Loan Agent

Loan agents’ working hours vary from those of other workers in the company. Most loan agents work at least 40 hours a week, while some work even more. When interest rates are low, more people apply for loans, which mean that loan agents have more work to accomplish in a lesser time. Depending on the size of the loan, you might earn anywhere from Rs. 500 to Rs. 10,000 for each case you manage. Even as a part-timer, you may make a lot of money if you’re ready to work harder than others and have the necessary abilities.

Your financial independence will be at your fingertips if you work as a bank loan representative. You may also work as a Personal Loan Agent while continuing to do your current job. Helping others in need is a rewarding aspect of the profession, and it increases your network in the process. To know more about loan agent program, kindly visit Andromeda and get in touch with our team.

How can I become a housing Loan Agent in India?

If you want to be a personal loan agent, you have chosen one of the outstanding careers. A loan agent is responsible for assisting people in securing a fund whenever in demand. It means a loan agent helps people connect with lenders or lending institutions, takes care of all the fundamental processes, and thus, manages several necessary aspects of money lending. In addition, loan agents also gather all the required documents and verify them before submitting them to the lender to ensure authenticity.

You might not know that these loan agents are also called DSA or Direct Selling Agents. Their primary objective is to link people with urgent capital requirements with lenders and guide them through the entire process. They are also responsible for performing the basic verification of the borrower to ensure that the loan application follows all the rules. So, like a personal loan agent, you should first connect your customer to a reputable lender, check the needed documents, and help your client through the entire loan application process. In this way, they can secure funding for their needs with ease.

So, you have learned about the primary role of a loan agent. But do you know how you can become such an agent? If not, in that case, you are in the exact place as we have penned down below a detailed discussion that will help you to become a loan agent.

The eligibility criterion to become a loan agent or DSA

Many people think that to become a loan agent, they have to be good at academics. But the fact is, there is no academic qualification required to become a DSA or loan agent. Whether you are a business person or a working professional, you can become a loan agent to convert your spare time into a productive one without difficulty. But proper licensing is required to become a DSA.

Before you become a loan agent, you must meet federal guidelines. For this, you will need Mortgage Loan Originator or MLO licenses and register yourself with the National Mortgage Licensing Service or NMLS. Not only this, but to get the license, you will also need to pass an exam. After that, you will get your license.

Apart from this, you have to meet the below criterion –

You must be 18 years old and a citizen of India

You have to be well-versed in the subject

You should have a good credit history and a high CIBIL score

The procedure for registering as a DSA

Now, with the assistance of technology, you can easily apply for DSA partner registration online by following the below steps –

Open the website of a bank or lender’s website

Pay the registration fee

After paying, apply, and you will see that the bank or the lender you choose will contact you to verify the documents for the DSA partner registration

After that, their official will start the upcoming process and review your credit history and credit score

Then, they will give you the DSA agreement, and other essential information

After that, you need to sign and submit the agreement

After submitting, you will become a licensed loan agent

Documents required for becoming a loan agent

Before you apply for a loan agent or DSA registration, you should gather the below documents:

2-3 passport size recent photographs

Aadhar card, Passport, PAN Card, or Voters ID

Any utility bill for the past six months for address proof

Bank statement for the previous three months

GSTIN details, if you have

Form 16 of the income tax returns from a certified CA

Company registration information, if applied as an institution

To wrap up, these are all the details related to becoming a DSA partner or loan agent. So, if you want to become such an agent, consider the above procedures and criteria in mind and apply for the post.