This article will discuss how to become a DSA in India. A Direct Selling Agent (DSA) is one of the most prominent personnel in the DSA Franchise business.
For the uninitiated, the loan agent business is about disbursing loans to the eligible borrowers.
Here, the DSAs find potential loan borrowers, educate them about the loans, help them contact financial institutions, and process loans.
Direct Selling Agents sell loans, credit cards, and other financial products. For every successful referral, the DSA earns a commission from the financial institution.
The commission amount varies depending on the size of the loan product. You are on the right page if you are new to the DSA Business and want to learn how to become a DSA and its steps.
We will discuss the step-by-step process of becoming a DSA. So, without further delay, start reading!
How to Become a DSA? – Step-by-Step Guide
Here is the step-by-step guide to starting a DSA franchise in India.
Step 1 – Understand the Role of a DSA
Before proceeding, you must first understand the roles of a DSA. For the uninitiated, the primary role of a DSA is to connect customers with financial institutions.
For that, you must identify the potential loan borrowers and understand their requirements. After that, you must explain to the borrowers why it is beneficial for them to buy loans from you.
Also, you must help them with the loan application and processing.
Step 2 – Check the Eligibility Criteria
The next step is to check the eligibility criteria for starting a DSA franchise and participating in the DSA Program. You must be at least 18 years old to become a DSA.
The minimum education qualification is 10th or 12th. Moreover, the person must have good communication skills and a basic understanding of financial products.
Step 3 – Choose a Bank or Financial Institution
To become a DSA, the next step is to choose a bank or financial institution to work with. Research and select a bank that offers ample opportunities to grow as a DSA.
Also, check their support for the DSA in selling the loan products. Moreover, checking the commission the banks offer before tying up with them is essential.
Step 4 – Apply to Become a DSA
To own a loan franchise, you do not need to visit the bank or branch directly. Most banks and NBFCs also have online facilities.
You can open the bank’s official website or NBFC and click on the “Become a DSA” or “Partner with Us” section.
You must complete and submit the DSA registration form online. Then, upload the required documents as mentioned by the bank or NBFC.
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Step 5 – Submit Required Documents
Mostly, all the financial institutions ask for similar documents. The standard documents include:
- KYC documents like Aadhaar and PAN card.
- Address proof, such as utility bills and rental agreements.
- Bank account details to receive commission.
- GST registration.
Step 6 – Sign the Agreement
After applying along with the documents, the next step to start a Loan Agent Program is to sign the agreement with the financial institution.
Before signing the contract, check the terms, conditions, regulations to follow, responsibilities, and commission structure.
Step 7 – Learn About the Products
After signing the contract, learn about the bank’s product range. You must be well-versed in all the loan products the financial institution offers.
Only then will you be able to suggest the right products to the borrowers. Furthermore, get training on the skills required to sell the loans from the experts.
Understand the eligibility criteria to apply for the loans, interest rates, and the application and documentation process.
Step 8 – Start Generating Leads
Once everything is set, start generating leads. The best way to do this in the Loan Agent Business is to check your close circle.
Identify the people in your close circle who are considering taking out a loan and target them. Also, you can rely on social media and digital marketing to find new customers.
If they are optimistic about the loan, guide them through the loan application process.
Step 9 – Submit Applications and Track Progress
Collect the required documents from the customers and verify them thoroughly. Then, please submit them to the financial institution and wait for the loan approval.
Follow up with the clients and answer their queries before and after the loan processing. This way, you can take your Direct Selling Agent Business forward.
Step 10 – Earn Commission on Successful Deals
Once the loan is approved, the DSA receives a commission from the financial institution. Customers who are satisfied with your work will suggest you to other leads.
How to Start a DSA Franchise? – Conclusion
This is how easy it is to become a DSA. We are sure you found this step-by-step guide on the Direct Selling Agent Program helpful.
Though there is massive competition in the field of DSA, it is still a solid job opportunity for enthusiastic individuals with sound financial knowledge.
Moreover, the earnings are very decent if the business clicks. With good networking and product knowledge, one can easily pull off the business and make a successful career.
