The feasibility of a successful business depends largely on the demand for your product in the target market. In relation to the topic here, India is experiencing excellent macro and micro factors that push the loan market in the country.
Higher the demand for loans, better the market for DSA agents because they thrive on the need for loans.
Few Significant Stats supporting the argument above;
• NBFCs of India have disbursed twelve crore loans from April 2021 to March 2022. It was 64 per cent YoY growth from 2020-2021.
• According to a recently published report by the Reserve Bank of India, demand for loans has increased to 15.1 per cent in July 2022 from 5.1 per cent in July 2021
• The spike has been mainly on the back of high-volume loan demand from corporates.
• The retail sector also saw impressive growth with 18.8 per cent in July 2022 compare to 11.9 per cent in July 2021. Home loans and auto loans attracted most of the demand.
• Service sector credit also grew to 16.5 per cent in July 2022 from 3.8 per cent in July 2021.
This data showcases the strong demand for loans in India. Therefore, therey are great business opportunities for DSA business and agents in the country.
Additional Reading: Tips to Start a Profitable DSA Business
Benefits of DSA Business in 2022:
• As per trends, more and more people are applying for loans like home loans, personal loans and auto loans. It means more prospective leads and higher commission.
• Higher commission improves the status of living and disposable income. You can use the income for business expansion and hiring DSA agents under your business.
• Expand market coverage and penetration in new markets.
• Lifetime income, freedom from a 9 to 5 job, and control over life.
• You can leverage digital marketing tools and techniques to target specific customer segments.
• Create age-specific ads and run them on Google Ads & Facebook Ads using the Analytics feature of the platforms.
• You are in tech-enabled advanced times, use the most of it for the expansion of your DSA business and make unlimited profits.
Factors Making Loan DSA a Great Opportunity in 2022
We will explain the reasons behind strong market trends for loans in India. Demand for loans is directly related to the DSA business opportunities.
Strong Market Demand
The demand remains high despite high-interest rates from lenders and multiple changes in the Repo rate of RBI.
Therefore, it is a lucrative opportunity for DSA business owners to generate leads, pass them on to lenders and earn significant commission.
Mr. Deepak Parekh, Chairman of Housing Development Finance Corporation, said, “Current interest rates are still at the pre-pandemic level. Weak players have been eliminated, and strong players are launching new projects Pan-India. Reputed and developed realtors are building new projects, and it shows their trust in the market.”
On the other hand, customers are buying under-construction projects, contrary to the only completed projects earlier. It shows the higher risk-taking capacity of young home borrowers.
Women are Taking Over
The loan market was a traditionally male bastion, and female representation was limited. This has changed in the last couple of years. Women are not only catching up but are also surpassing male counterparts in terms of loan numbers and volume.
As of December 2021, women borrowers constitute 31 per cent of the home loan market, 23 per cent of business loans and 17 per cent of the personal loan segment. Females are actively taking auto loans too.
Rising number of women borrowers opened a wider segment of prospective clients for DSA business owners. You can pinpoint working women and present loan products personally or through online mediums.
First Timers and Freshers
Crores of Indians are still fresh to the credit world. Their credit score is either zero or no credit history. But they want to stay prepared for home loans in future.
To be future-ready, they take small personal loans and pay them back in easy instalments.
This makes their credit score better and eligible to apply for big amounts of loans.
Again, Direct Selling Agents can leverage this segment. They are young people and entry-level employees. You can target them and help them avail of loans through the easy process.
It will help you to get new clients. These people are prospective leads for home loans and auto loans after a few years.
Impact of Covid-19
Covid-19 affected socio-behavioral dynamics. Working from home and studying at home became the new normal. Social distancing, hyper-consciousness about hygiene and the need for spacious rooms caused a sharp increase in home loan demands. People are taking loans for new homes and home extensions like, room for kids, room for work-from-home set up, etc.
Loan DSA are people with great networking and communication skills. These relationships help in multiple ways like job, DSA business, and referral clients.