The primary source of earnings for banks and NBFCs is the interest they receive on loans. Thus, for every bank and NBFC, it is crucial to acquire as many clients as they can who avail of loans from them. The network of the banks and NBFCs grows with their agents, and one of the primary agents that every bank and NBFC has is loan DSA.
What Is The Meaning Of DSA?
The full form of DSA is Direct Selling Agent. Individuals who become a loan DSA are allowed to and have the responsibility of acquiring clients and selling the bank's loan products to them. DSAs are paid a commission by the bank. The remuneration paid depends on the amount of the loan and the type of loan. The DSA acquires clients who want a loan for a different purpose. Then help them choose the loan that fits their requirements. After the client avails of the loan, the bank or the NBFC earn the interest, and the DSA earns the commission.
Roles & Responsibilities Of Loan DSA
The roles and the responsibilities of a loan DSA include the following:
The first and foremost role and responsibility of a DSA is to build his network. He must meet people who need a loan or cold pitch to people who can avail of a loan or have provision for the same. Building the network is the primary responsibility of a DSA. They need to market the bank or the NBFC they are working for and the loan products the bank or the NBFC sells.
The second task is to properly pitch to the people who require a loan or can avail of a loan for a different purpose. Suppose your friend is about to purchase a home and he is looking for a home loan. You can pitch to him on the behalf of the bank you work for and explain the home loan the bank offers. Another scenario can be, you know a friend who lives in a rented house and is willing to buy a home, but due to a shortage of capital, he cannot. Thus, you can pitch to him about availing a home loan. Pitching and convincing are two main weapons of every DSA.
The next step is acquiring the client as a result of the pitch you made. Once you know that the prospective client is willing to avail of the loan, you must explain to him the next procedure. Also, acquiring clients requires the exceptional convincing power of the DSA. Apart from having the convincing power, you also need to have the ability to explain the product, which is also a part of pitching.
Once you have acquired the client, you need to help him with the documentation. First thing first, you need to apply for the loan on behalf of your client to the bank you work for. After the application, you need to check all the documents of the client and upload the same.
As a DSA, you need to check and verify the documents of the client as well. You need to verify the details of the client, the documents they have submitted, and also the background check is necessary. However, in some banks, DSA only conducts the preliminary verification, while an in-depth verification is conducted by the bank’s associate.
Availing of the loan
Once the verification is over, and the loan is approved, you can also help the client to understand the process of EMI payments.
Finally, as a DSA, you not only need to acquire clients but also retain clients. A person can take personal loans, multiple times, educational loans multiple times, and there are many such loans that a person can take multiple times. Thus, retaining a client is crucial as a DSA to make your earnings grow.
How To Start A DSA Business?
If you are wondering how you can become a loan agent, the process is simple. You can become a loan agent yourself or start a business out of it as well. For both, you need to first complete the DSA registration online. For registration, you need to visit the bank or the NBFC you want to be associated with. Then you need to make the necessary payment and submit your documents. Then your documents and details will be verified, and upon successful verification, you will get the loan DSA registration agreement. You need to fill out the same and submit it. Once you become a DSA, you can appoint other people under you to start a business out of it.
Becoming a DSA can be beneficial for people looking to start their own business and have great convincing power. If you want to be in the finance industry but as an independent agent, becoming a DSA can be helpful and at the same time lucrative as well.