NBFC is a non-banking financial company. Any person who acts as a referral agent for such a company or bank is called DSA (direct selling agent). As an agent, the primary responsibility is to generate leads and bring in new clients for the banks and NBFCs. When the customer takes a loan on the agent’s reference, the agent generates an income for themselves. You can earn a considerably handsome and consistent amount by working as a business loan DSA in Delhi, Bangalore, or Hyderabad. Reading further, you will find the details of becoming an NBFC DSA loan agent. But before that, let’s first know who is a DSA agent or what is NBFC?
What is NBFC?
Non-Banking financial companies or Institutions do not have a financial license issued by regulatory bodies such as RBI, yet they provide various banking services. They are not allowed to accept public demand deposits such as savings accounts, fixed deposits, etc. NBFCs are predominantly engaged in financial activity related to loans and advances.
Who is a DSA?
The loan DSA partners with NBFC to promote and sell its products. The DSA loan agent does not work out of the office but may host events to promote their products. They are independent people who build a network of sales. They individually locate customers and work directly with them.
Previously, in the initial days of this business, DSA was known as door-to-door agents who went from door to door, selling cleaning supplies, home equipment, etc. These days loan DSAs offer several financial products like personal loans, car loans, home loans, etc., at your doorstep. Whether you are looking for a loan DSA in Delhi or a business loan DSA in Jaipur, these agents are easily accessible in all the cities.
Also Read- Registration Process for DSA Agent
Benefits of DSA
| To the individual | To the customer | To the NBC or Bank |
self-employed and flexible working hours DSA loan agent commission will provide you with additional income It is a low-cost and low-risk business venture. No need for specific degrees other than a few skills set required. These skills are further enhanced by training by the respective bank and NBFC. | DSA loan agent helps the customer to resolve their issues in a hassle-free manner Be it either personal loan DSA or business loan DSA, the customer will find them helpful in choosing from various loan options. Loan DSAs are also available for assistance after sale | The pre-verification and registration are done by the DSA loan agent. They address and shortlist the potential customers. DSAs also help in spreading awareness about several financial products among the masses |
Also Read- How to start DSA Business
Eligibility criteria for DSA
To be able to register yourself as a DSA agent, you should meet a few requirements;
- You must be an Indian citizen and must have attained 18 years of age
- Should be able to work in public dealing
- Have sound knowledge of financial products and services
- Excellent communication skills and the ability to persuade and convince others
Documents required for NBFC DSA registration
To obtain the NBFC DSA franchise, you must produce the following documents:
- Aadhaar card
- PAN card
- Driving license
- Bank details
Procedure for NBFC DSA Registration
The loan DSA franchise can be obtained individually by directly contacting the NBFC or bank or loan DSA partner sites. The applicant will have the opportunity to become a bank loan DSA. Even though there are differences in how an NBFC or a bank registers Direct Selling Agents, below mentioned are the few common steps followed by all of them:
- You can submit your application, along with the payment online or offline, by visiting the bank or NBFC.
- The bank will then contact you for documentation and you will be required to produce documents as asked.
- The next step is the verification of your documents, and when the authorities are content with your application, a duly stamped DSA agreement will be sent to your address.
- Fill up the details of the agreement and submit it to the bank/NBFC.
- You will receive a code to review and track your application status.
- Once you receive your DSA, you can start with customer engagement.
The steps mentioned above are followed if you apply for a home loan DSA, a loan against property DSA or even a car loan DSA.
Also Read – NBFC vs Banks
Conclusion
DSA’s main job is to represent the customer to the bank/NBFC and the financial product (bank/NBFC) to the customer. In short, a loan DSA is a bridge between the two. And their primary goal is to promote the lending institution to generate extra income. A DSA loan agent’s commission depends on his effort and how much lending he has generated for the financial institution.
Frequently Asked Questions
1. What is an NBFC DSA?
An NBFC DSA (Direct Selling Agent) is an individual or business that works as a referral partner for a Non-Banking Financial Company. The DSA generates loan leads, connects customers with the NBFC, and earns commission when a loan is successfully disbursed.
2. How does a DSA loan agent earn commission?
A DSA loan agent earns commission based on the loan amount disbursed through their reference. The commission percentage varies depending on the type of loan, such as personal loan, business loan, home loan, or loan against property. Higher loan amounts usually result in higher earnings.
3. Is registration required to become a DSA for NBFC or bank?
Yes, registration is mandatory. To become a DSA, you must sign an agreement with the bank or NBFC. After document verification and approval, you receive a DSA code that allows you to officially start sourcing loan applications.
4. What are the eligibility criteria to become a loan DSA?
To become a DSA agent, you must be at least 18 years old, be an Indian citizen, and have good communication skills. Basic knowledge of financial products is helpful. In most cases, no specific educational qualification is required.
5. What documents are required for NBFC DSA registration?
Commonly required documents include Aadhaar card, PAN card, bank account details, identity proof, and address proof. Some lenders may request additional documents for verification.
6. Can a DSA work with multiple banks or NBFCs?
Yes, many DSAs work with multiple banks and NBFCs unless restricted by agreement terms. This allows them to offer customers more loan options and increase their income potential.
7. Is becoming a loan DSA profitable?
Yes, becoming a loan DSA can be profitable because it requires low investment and offers flexible working hours. Earnings depend on performance and the number of loans successfully disbursed.
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