DSAs receive a payment from the banks or NBFCs for the services they offer to both the borrower and the lender. It also includes a percentage of the loan amount availed by the customer, depending upon the type of loan sanctioned. In some areas, especially in rural ones, DSAs are also known as business correspondents.
The role of the DSA
Let us once again visit the role of the DSA in broader terms.
DSAs connect borrowers, looking for business loans to the lender, and are responsible for explaining all aspects of the business loan to the customers.
Their role is defined as followed-
1. Collecting all the important documents and loan applications with care from the borrower.
2. Conducting verification and due diligence to ensure both the loan application and other documents are correct.
3. Ensuring that the documents provided by the lender are genuine and are not forged ones.
Finally, they collect and submit all these documents to the bank, along with the loan application form and their DSA code so that the application can be traced back to them.
Advantages of Becoming a DSA
Since DSAs play a crucial role in the lending ecosystem, there are many advantages of becoming one. A Direct Selling Agent helps the banks and NBFCs find suitable borrowers and vice versa. Nowadays anyone can become a DSA, a working professional, a self-employed or a housewife and they can earn extra income from this work.
Major benefits of being a DSA are –
• DSAs work on flexible hours, so you can take it up as a part-time assignment.
• Work as per your schedule and time.
• The commissions can be hefty depending on the leads that you generate.
• Being a DSA, you become a part of the crucial financial and credit industry.
• You can operate at minimal cost, with no credit risk attached.
• There is no requirement of higher educational qualification or special degree to become a DSA.
• You get necessary industry training from the bank or NBFC.
• You have to pass on the generated leads to the bank or the NBFC and the rest of the technical and financial work will be done by them.
• In most cases, a DSA does not require any investment or deposit.
So, in a nutshell, we learnt about DSAs and their major roles. They assist people during their loan application journey with the bank or the NBFC they represent. DSAs have become an integral part of the financial industry, and one can become a DSA without any major qualifications and earn a good income.