Ever been in a position wherein you apply for a loan from a bank, not directly with the bank but through an agent?
Ever wondered why this person is trying to get you to apply for a loan when you can do it by visiting a bank or a non-banking finance corporation (NBFC)?
Well, for starters, more often than not, this is not a scam. In fact, people who help you procure a loan from a bank or an NBFC are direct selling agents or DSA.

A direct selling agent or DSA is a person who works as a referral agent for a bank or NBFC. The job of a DSA is to find potential customers for the bank they represent. To do this, DSAs will look for people who are in the market for a loan. These leads are then directed to the concerned bank or NBFC and the loan process is taken forward. For the effort put in by the DSA, a payout is provided. This payout is a percentage of the type of loan and the loan amount. And this payout is a great way to earn a little extra cash. In rural areas, DSA's are known as business correspondents.

1. The DSA doesn't just get potential leads. Here are other things that DSA agents do:
2. Procure the completed loan application from their leads along with required documents.
3. Conduct a preliminary check of both the application and the documents.
4. Ensure that the documents provided are genuine.
5. Upload or submit these documents and the application form and provide their DSA code so the application can be traced back to them.

1. You can earn additional income. The amount you earn will vary from lead to lead.
2. You can run your business with minimum cost with very little risk.
3. Flexible working hours.
4. Higher education is not a requirement.

1. Any concerns you have can be easily and quickly addresses by the agent.
2. You have a wide variety of options to choose from when it comes to the loan product you are looking for.
3. The DSA is available if you require any after-sales service.

It goes without saying that there is a process that needs to be followed when it comes to becoming a direct sales agent. A person just cannot wake up and start selling loans from a bank or NBFC. You will have to register first.
Various banks, NBFCs, and lending platforms have their own registration process. The steps that are common are:
Submit your application to the bank or NBFC company,
Once the documents you have provided.
Your documents will be verified, a legal team will start a due diligence process, and CIBIL score and credit history will be checked.
If there are no problems with the background check, a DSA registration agreement with the right stamp duty will be sent to you. Fill in the required details, sign the agreement, and submit it.
The DSA code will be issued to you after the after the 10 loan files.
Documents required for DSA Registration
Given below is the list of documents you will have to submit for DSA Registration:
1. Proof of identity such as PAN, Aadhaar, passport, voter id, etc.
2. Proof of address such as utility bill, Aadhaar, passport, etc.
3. Details of your bank transactions for the last three months.
4. Form 16 or Income Tax Returns details.
5. Education qualification certificates from both school and college.
5. Firm's registration details if you are applying to an institution.
6. GSTIN details only if applicable.
7. Two passport size photographs of yours