When individuals require financial help, the procedure of selecting the right lender and completing the loan application process can be somewhat difficult. For example, a shop owner might need money to grow his business, a salaried professional may need a personal loan, or a family might need finances to buy a house. In such situations, a loan DSA (Direct Selling Agent) partner can act as a bridge between borrowers and banks/NBFCs.
A DSA is simply an intermediary between prospective borrowers and lending institutions. A DSA locates prospective clients, describes available loan options, assists them in preparing documentation, and monitors the application process until the loan is disbursed. The DSA also receives commissions based on lenders’ payout systems.
What Does a Loan DSA Partner Do?
A DSA is typically an independent business partner and not a bank employee. The main responsibility of a DSA is to facilitate the borrowing experience for the clients while bringing valuable leads to banks/NBFCs.
Typical responsibilities include:
Basic requirements usually include identity and address proof such as Aadhaar and PAN card, bank account number, mobile number, and any other document required during the registration process. A smartphone or a computer with an internet connection may also facilitate the application process.
Loan DSA Partner Registration Process
The process may vary depending on lenders and platforms but typically follows the given steps.
1. Select a lender
You could go to a private bank, non-banking finance company, or a platform like Choice Connect that allows getting loans from multiple lenders.
2. Complete your registration
You shall need to enter several personal details such as name, phone number, address, job, etc.
3. Complete KYC verification
This means providing different identification documents to prove identity, residence, and any other details.
4. Sign a DSA agreement
This agreement outlines responsibilities and duties, commission eligibility, compliance terms, etc.
5. Get your partner code
After the approval of your application, you will receive your DSA code that will be used for projects.
6. Start generating opportunities
After the registration is finished, registered members will be able to arrange contacts and get them loans. Depending on the lender’s requirements, applicants may include:
Freelancers
Businessmen
Real estate specialists
Financial consultants
Regular employees
Retired professionals
Students from 18 years old (if allowed by the lender)
Basic requirements usually cover identity and address proof documents like Aadhaar, bank number, phone number, etc. A smartphone or a computer with an internet connection may also facilitate the application process.
Loan DSA Partner Registration Process
The process may vary depending on lenders and platforms but typically follows the given steps.
1. Choose a Lending Partner
You may go to an individual banking institution, NBFC, or a multi-lender platform such as Choice Connect.
2. Complete Registration
You have to provide basic details such as name, contact number, location, profession, etc.
3. Finish KYC Verification
Provide required identity, address, banking, and other verification documents.
4. Sign the DSA Agreement
The agreement generally states roles and responsibilities, commission eligibility, compliance terms, and any other conditions.
5. Receive Your Partner Code
Once your application is approved, you are likely to get a DSA or partner code to be used for your applications.
6. Start Generating Leads
Once the registration is completed, you will be able to connect potential clients with available loan products and place the requests.
How Does a DSA Earn?
Earnings of a DSA are directly related to successful loan disbursements, with variations in commission structures depending on the lender, loan product, profile of the customer, and specific agreement with each party.
The process includes:
Lead → Application → Verification → Approval → Disbursement → Commission payment
It is important to mention that submitting the application does not guarantee the payment of commission since it is normally related to successful disbursement of the loan and payout conditions.
In some cases, customers will return for other products like a top-up loan or balance transfer, which means additional revenues where possible.
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