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NBFC DSA Registration: A Guide on NBFC Direct Selling Agent

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nbfc dsa registration

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 the process 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 a financial activity related to loans and advances.

Who is a DSA?

The loan DSA partners with NBFC to promote and sell their 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.

Benefits of DSA

To the individual

To the customer

To the NBC or Bank

  1. self-employed and flexible working hours

  2. DSA loan agent commission will provide you with additional income 

  3. It is a low-cost and low-risk business venture.

  4. 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.

  1. DSA loan agent helps the customer to resolve their issues in a hassle-free manner

  2. Be it either personal loan DSA or business loan DSA, the customer will find them helpful in choosing from various loan options.

  3. Loan DSAs are also available for assistance after sale

  1. The pre-verification and registration are done by the DSA loan agent.

  2. They address and shortlist the potential customers.

  3. DSAs also help in spreading awareness about several financial products among the masses

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:

  1. Aadhaar card
  2. PAN card
  3. Driving license
  4. 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:

  1. You can submit your application, along with the payment online or offline, by visiting the bank or NBFC.
  2. The bank will then contact you for documentation where you will be required to produce documents as asked.
  3. The next step is verification of your documents, and when the authorities are content with your application, a duly stamped DSA agreement will be sent to your address.
  4. Fill up the details of the agreement and submit it with the bank/NBFC.
  5. You will receive a code to review and track your application status.
  6. 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. 

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.

NBFC DSA registration FAQs:

1. What is the DSA agreement?

It is a written document defining the terms and conditions subject to the post of DSA and the rights of the DSA and the financial institution.

2. Do all banks and NBFC charge some registration fee?

No, not all of them charge a DSA registration fee.

3. Is DSA business profitable?

Yes, it is. It is a low-risk low investment business, and you can take it to new heights based on your hard work and efforts. Working as a loan DSA in metros like Mumbai or Kolkata is fairly easy and highly profitable.

4. Will I be required to have an office if I want to be registered as a DSA?

No, there is no absolute necessity for any office to start your work as a DSA. You can choose to do it in your time, with flexible working hours in whichever mode you like, online or offline. For example, you can choose to go door to door, or you can choose to hold a meeting at your home where you talk and make people aware of all the financial products offered to them.

5. How does a DSA approach the customer?

A DSA can never directly approach the customer, But. if a potential buyer is referred to the DSA through someone, or if the buyer himself approaches the DSA.

6. What are the uses of the DSA code?

DSA code is a number attached to the loan application by the customer. It acts as the tracking number for the DSA agent if he wants to track the loan.

7. How does a DSA earn?

A DSA is paid interest on each product sold by or through his referral. Hence, anyone who seeks a loan is an earning opportunity for him.

8. What is the DSA channel?

These are small retail channels used to market products and services by top NFBCs and banks.

9. What are the advantages of a DSA business loan?

Doorstep service Pre- and post-sale assistance Approval and credit score guidance

10. What are points of caution a customer must be aware of while dealing with DSA?

A DSA represents the lender but is not an authorized representative. The customer must be aware that the DSA will be paid an incentive for each sale. Hence, in case of any doubt, don’t hesitate to directly contact the lender in case of any doubt.

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