Being a loan agent entails constantly seeking out new customers and prospects and explaining the same product to them, but it is lucrative. Yes, working as a DSA loan agent can be a great career choice if you are motivated, have excellent communication skills, and want to expand your network. Due to the abundance of options, DSAs in India can make up to lakhs of rupees in commission. Over various types of loans, the standard range of commission for DSAs is between 0.2% and 2%. It all depends on how much credit you are selling to your customers.
A DSA Loan Agent makes it easier for borrowers to find lenders and assist those who are interested in or looking for a loan to apply for one with the bank or NBFC (Non-Banking Financial Company) they represent. Although it is a financial entity that provides a range of banking services, because demand deposits are not permitted, it is not officially a bank. The DSA Loan Agent registration procedures varied for various banks and NBFCs. However, this is the standard procedure for applying –
- Go to the specific bank or NBFC and submit your application there.
- You need to fill out the application form and then upload documents.
- Your documents will be verified when you submit them, and a legal team will conduct a due diligence procedure in addition to checking your CIBIL score and credit history.
- If they don’t discover any issues during the verification and due diligence, they will provide you a DSA registration agreement with the appropriate stamp duty.
- You must now complete the necessary information, sign the contract, and submit it.
- Banks and NBFCs will each issue a DSA code.
- You can start uploading and submitting loan applications and loan documentation as soon as you have the DSA code.
Know about the responsibilities of DSA
A DSA Loan Agent’s responsibility is to locate potential clients for the bank they serve. DSAs will search for persons who are looking for a loan to do this. The loan application procedure is then moved ahead when these leads are forwarded to the relevant bank or NBFC.
In exchange for the DSA Loan Agent work, a reward is given. This payment is based on the type and size of the loan. Furthermore, this dividend is a fantastic method to make a little additional money. DSAs are referred to as business correspondents in rural areas. A DSA aids in the banks and NBFCs’ search for qualified borrowers. A DSA Loan Agent assists borrowers in locating a bank that will lend to them and is suitable. Finally, it assists them in generating income for them.
A DSA is employed by banks and NBFCs to increase their business. They also assist the borrower with the loan process and some post-sale support. You don’t need a specific degree or certification to work as a DSA.
The leads that DSAs produce for the bank or NBFC are rewarded in the form of a commission. For instance, a lender of house loans might look for someone with real estate experience, while a lender of loans for vehicles might have other needs.