Introduction:

Have you ever needed a loan and thought about applying through a bank agent instead of directly with the bank? If yes, you might wonder why you should rely on an agent over direct dealings with a bank or a non-banking finance company (NBFC).

Surprisingly, working with a loan agent is a feasible option. These agents, known as Direct Selling Agents (DSAs), facilitate the process of acquiring loans from banks and NBFCs.

A Direct Selling Agent acts as a referral source for a bank or NBFC. Their primary duty involves identifying customers who require loans and linking them with the appropriate financial institution. DSAs earn a commission based on the loan’s type and amount. In rural regions, they are termed business correspondents.

Besides generating leads, DSAs undertake essential tasks such as collecting completed loan applications and requisite documents from their prospects, ensuring the authenticity of documents through initial checks, and submitting the application alongside documents to the bank or NBFC using their exclusive DSA code.

Being a DSA or Business Correspondent offers numerous benefits. Firstly, it provides a chance to earn extra income, with variations depending on each lead. Additionally, managing a DSA business involves minimal expenses and bears low risk. Enjoy flexible working hours without needing a higher educational qualification. Typically, banks or NBFCs offer training to DSAs.

Opting for a loan via a DSA offers consumer advantages, including accessible agents to resolve queries during the loan process, a broad spectrum of loan products, and after-sales support if required.

To become a DSA, a registration process must be followed. While each bank or NBFC has its unique procedures, general steps include visiting the institution, submitting an application, paying the required fee, furnishing requested documents, undergoing a background check including CIBIL score and credit history verification, and signing the DSA registration agreement post due diligence.

Document preparation for DSA registration involves gathering proof of identity (like PAN, Aadhaar, passport, or voter ID), proof of address (such as utility bill, Aadhaar, or passport), recent three months’ bank transaction details, Form 16 or Income Tax Returns, educational certificates, firm registration details (if needed), GSTIN details (if applicable), and two passport-sized photos.

Both salaried and non-salaried individuals can qualify as DSAs if they are Indian citizens, at least 18 years old, possess a solid understanding of the products on sale, and maintain a high credit score or CIBIL score.

Working with a DSA provides a convenient means of securing loans, offering personalized assistance and diverse options to address your financial requirements.