A Loan DSA, also known as Direct Selling Agent, is an individual who works as a referral agent for any financial institution or a bank. The objective of a Direct Selling Agent is to identify and find potential customers for the NBFCs or banks that they represent. In order to carry out this task, the DSA will in turn find customers who are looking for a loan in the market. Such potential leads are then redirected to the concerned financial institution and the loan processing work is then carried forward.
A lucrative payout is surely offered for the services of a Loan DSA. The payout is usually in terms of percentage of the availed loan amount and also the type of the loan. This payout can work really well for individuals who are looking forward to some extra earnings. DSAs are also popularly known as Business Correspondents or Loan Officers. However, one question that may arise is – Why is the need for Loan DSAs high right now in the finance market?
Unlimited Why Consider Loan DSA as a Great Business Opportunity in 2020?
Over the last decade, there has been a tremendous demand for different kinds of loans from individuals across our country. It has also been found that the number of people availing various loans like home loans, auto loans, personal loans, business loans, etc., as of today is much higher when compared to the last two decades.
Within this growing trend, one can find four noticeable shifts. The very first one is that the entire process of lending is shifting online. Also, an individual looking forward to a loan today is much more likely to fill up an online application on any financial website rather than walking into the respective branch of the institution.
Secondly, there has also been a rapid growth in the development of Fintech companies that offer tremendous convenience to borrowers for accessing credit. The third shift is that with decreasing demand for secured loans such as loans against property and housing loans, unsecured credit like personal loans and credit cards at high-interest rates are facing huge demand. Lastly, the fourth shift is seen in the demand for credit coming from towns in Non-Metro cities.
It has also been found that at the macro level, our economy is shifting to low savings-high leverage from high savings-lower leverage at the household level. The shift can also be observed at the geographic level. The biggest growth can be observed amongst Non-Metro consumers as well as from millennials. As per TransUnion CIBIL, it has been found that from 2016 to 2018, the number of millennials availing credit cards and loans has grown by 58% when compared to 14% for non-millennial. It has also been found that in 2019, the penetration of credit cards in Non-Metro cities has grown at a faster rate of 12% when compared to 4% in the Metro cities. The report also states that though the demand for home loans and auto loans have fallen in Q3 2019 when compared to Q3 2018, personal loans have risen by 133% and credit cards by 21%.
As per Insights Division, India is still an unexploited market with around 230 million credit-eligible customers and only 50 million credit card customers. This demand is also highly seen amongst individuals of 25 to 30 years of age.
Several online loan marketplaces have enabled millions of customers to apply and get loans online easily. Such loan marketplaces have helped in easy comparison of loans online and hassle-free documentation. By using technology, these companies offer financial services and products to their customers such as unsecured loans, credit cards, personal loans, and instalment loans.
They successfully connect potential customers with reputed lenders while helping them to get the best possible deal. These companies are also known for offering value-added services to their customers like big data analytics, automated workflows for loan management, assessment and verification of documents, and also calculating the credit risks of borrowers.
A majority of individuals do not prefer to work under someone and want to be their own boss. It is not uncommon for many of us right now to dream of opening up our own business such as a restaurant, retail store, and so on. By being a Loan DSA, you have the opportunity to fulfil this wish. There are several benefits associated with being a loan DSA.
By being a DSA of any reputed financial lender, you become a business associate, and by putting your effort and time in the same will fetch you more wealth. You can manage your work hours as per your flexibility and generate as many leads as you wish and earn commissions for every successful referral.
This also serves as a potential opportunity for you to expand your social network. When you are a DSA, you get a monthly payout. With more converted leads, you get a higher payout. This opportunity also allows you to improve your communication skills while enhancing your knowledge in the loan sector.
Following are a few benefits that you can exploit while being a DSA:
Don’t we all wish to become the CEO of our own company? A CEO is one who is responsible for the entire organization and its smooth functioning. When you become a DSA of any reputed financial lender, you can build your team in a few years to function as a full-fledged company.
You can always couple the experiences which you have gained as a DSA by working out problems that you encounter as the CEO of your organization. If you have a certain team under you, you must always lead and inspire them with your right attitude as well as actions. By employing proven sales techniques and winning strategies, you can spearhead your company to succeed in the financial market.
There is an established process that you need to follow in order to become a direct sales agent. The very first step in this process is Registration. Several banks, financial lending platforms as well as non-banking finance companies have their very own established registration processes. A few common steps are as follows: