Things to Consider Before Applying For Bank Loan Agent or DSA Registration

A Direct Selling Agent is a person who works for a Non-Banking Financial Company (NBFC) or a bank. They bring potential borrowers to lenders. DSA takes care of the entire loan procedure and all the administrative facilities of the applicant. They are not hired as employees and work for a lending institute. They take their commission from each loan application they successfully bring to a bank. In rural areas, people know them by the term business associate. There are certain things that you must know about before applying for a bank loan agent. Today we are going to talk about the same. 

What are the requirements for receiving a DSA registration in India?

NBFC DSA registration is a process by which candidates register to work as an agent. To receive a DSA registration in India, you must meet specific requirements, which are below:

  1. Must be an Indian citizen

  2. Must be 18 years or above in age

  3. The person must familiarize themselves with the financial products and services of the bank or NBFC

  4. Interested in working in the public sector

  5. The applicant must have efficient communication skills

Do registering as a direct selling agent for an NBFC have any advantages?

Yes, you get several advantages if you register as a DSA for an NBFC. The following are some of them:

  • Being a DSA is a good source of passive income. The generated income will depend on the number of leads you create for a bank or NBFC

  • It is the start of a new business without any investments and risks. If you can do this work nicely, you can also start a firm, hire employees, and work full-pledge to generate leads for various banks

  • The working hours are flexible. There is no fixed deadline that you have to meet every day. You can work at your own pace

  • There is no specific degree or education you need to become a DSA. A person from any educational background can become a DSA and use this as a source of passive income

  • No need to worry if you do not know the work. After registration, you will receive training sessions from the respective bank or NBFC. You can learn the skills and then apply those skills to generate leads

The benefits are not limited to the DSA agent alone. The customers who approach them also get several advantages. The primary benefit is you do not have to worry about the documents or the application process. The DSA agent will complete all the paperwork from the beginning to the end. During any procedure stage, the customer can resolve all questions and queries from their direct selling representative. The agent will provide you with multiple products, and you can choose one according to your budget. Customers also get exceptional after-sales services. Financial institutes also benefit from DSA agents. They connect borrowers to lenders and guarantee local leads access to a specific bank branch. They raise awareness about financial products among the general public. They are trained to engage effectively with borrowers and complete the entire initial verification and client demands. 

What are the responsibilities of a direct selling agent?

A DSA has to fulfill the following responsibilities:

  • Approaching the clients to collect loan applications as well as all other documents

  • Conducting a background check on the client. They also carry out a preliminary check on the application and the paperwork

  • Confirming the papers are valid and not fake

  • Upload the scanned copies of all the papers, fill out the application form, and submit it

  • Provide their DSA code so the bank, and the customer, can track the application form

What is the registration process of a DSA agent?

The DSA registration is super easy. Read the following steps to register you as a DSA:

  1. After you have decided on the bank or NBFC you want to work with, visit their official website

  2. Fill your details in the application form and submit it

  3. You have to make payment of the form in the next step

  4. After the successful submission of your application form, the bank or NBFC will contact you for the verification of documents

  5. The legal team of the bank or NBFC will start the verification process. They will also check your credit score and your past payment history 

  6. After all the information verification, they will send you the DSA agreement when satisfied with your application form

  7. You have to sign and submit the agreement

  8. You will get registered as a DSA of the bank

  9. You will receive a referral code after which you can start the process

Final Takeaway

A DSA agent represents a lending institute in front of the borrowers. They promote the financial products of a bank and generate leads for them. So consider the above factors before applying to begin your work as a DSA. If you wish to work with India’s largest loan distributor, visit Andromeda and provide your details.

Also Read: How do I become a DSA Partner?