Feature Image

WHAT ROLE DOES DSA PLAY IN LOAN PROCESSING?

Posted on Monday November 23rd, 2020

The role of DSA is almost same in every financial institution but when you apply for a loan selling agent for a particular lending institution, you have to go through a specific agreement that contains all the terms and conditions applicable. The loan agents are the one who connects a potential loan seeker to the lender, take care of the needed documentation for loan application forms, do fundamental evaluation and ensure that the submitted documents are in accordance with the guidelines of the particular lending institution. Here, we will discuss about what role does DSA play in loan processing and in its disbursal.

1. Applicability
The code of conduct for LOAN AGENT will be applicable to all the individuals employed by DSA who would be involved in marketing and distributions of the financial services of banks and NBFCs. If anyone fails to adhere with this requirement may result in permanent termination of the channel partner tie-up of the DSA with associated lending institution.

2. Tele-calling a potential borrower
A potential loan seeker has expressed his/her desire to take a product via lending website/branch or has been referred by another client or through the an existing customer of the associated bank who has given acceptance for receiving calls for the other services of the bank or NBFC.

3. Keep the secrecy of borrower’s interest
The customer’s privacy should be the first and foremost priority of the DSA. If the borrower would authorize then any other individual/spouse/accountant/family member can be contacted.

4. Messages and contacting the borrower
DSA should make a call to the borrower only. However the customer is not available, a message may be delivered to him/her with the objective of getting the customer to call back or to check for a convenient time to call him/her again.

5. Misrepresentations are prohibited
The DSA cannot give misrepresentation of any offered service/product or about the bank and NBFC to the customer and can’t make the false promises on behalf of the bank or any lending institution.

6. Contacting Etiquettes

Pre-call
1. Always make a call between office hours.
2. No calls if you figure out the do not disturb numbers.

During call
1. Give a brief introduction of yourself.
2. Seek a permission to proceed with your product and don’t force if denied.
3. Try to talk in the language that is most comfortable to the customer.

If a loan seeker plans to buy the financial product:
1. Confirm the next call with customer.
2. Provide your contact number if anyone ask for it.
3. Gratify the customer for giving his/her valuable time.

7. Do not accept any bribe
DSA must not accept any kind of bribe offered by the customer. She/he must inform about this act to the management.

8. Few precautions to be taken

DSA should:
• Respect the privacy of customer.
• Do not intrude the client’s office/residence without his/her permission.
• Take care of borrower’s requirements.
• Maintain a healthy and professional relationship.

9. Handling the letters
DSA should follow the prescribed format assigned by the particular lending institution.


Feature Image

FREQUENTLY ASKED QUESTIONS ABOUT DIRECT SELLING AGENT (DSA)

Posted on Thursday July 30th, 2020

Who can apply as a Direct Selling Agent?
A person who is interested and have knowledge of financial products and desirable to work in public dealing with a good communication and convincing skills can Apply as a DSA with bank or NBFC.

What are the benefits for a financial institution to keep DSA?
There are number of benefits in appointing a loan agent.
• It makes the local approach easier.
• DSAs shortlist the potential customers.
• Common people become more aware about the financial products offered by lending institution.
• Loan seekers through DSA are easy to be addressed as DSA has performed preliminary verification and registered the needs of the client.

How does a DSA approach the customer?
DSA cannot directly approach someone who’s a potential customer but if individual is referred to DSA through someone or he/she himself presents a desire to avail the financial product to the loan agent.

How a DSA earns?
The lending institution offers a fixed percentage of incentive to the direct selling agent on each product sold by him/her to a client. Therefore, every potential loan seeker is an earning opportunity for the DSA.

How can an individual attach with a lending institute as a DSA?

To Become a DSA a person needs to follow given steps:

• Search for a genuine financial institution to work as a DSA depending upon factors such as payouts, working hours, targets etc.
Register as a DSA by submitting your application to the institution.
• Provide all the needed documents required by bank/NBFC and wait for the verification.
• Past credit report shall also be considered.
• Once you met the eligibility criteria and all your records are up to the mark, the institution will send you an agreement for DSA with a stamp duty.
• The applicant needs to return the duly fill form to the bank/NBFC if he/she agrees to all the terms and conditions as per the agreement.
• Then after DSA code is generated by lending institution which is used by candidate as an ID for all future settlements.

What are the uses of DSA code?
This code is used by DSA in all the documents submitted on behalf of a customer as well as it is tracking number for the loan agent to track the progress of loan application.

Why the DSA and financial institution relationship is symbiotic?
This relationship is considered to be symbiotic in nature because of the benefits provided to each other while coexisting in a system.

Benefits offered by the DSA to lending institution:
• DSA makes the people more aware about the financial products of the bank/NBFC; he/she is attached to.
• DSA saves a lot of time of the lenders as the preliminary verification of documents is performed by him/her.
• DSA keeps constant eye on competitor products giving a better idea to the lending institution about new market trends and requirements.

Benefits offered by bank/NBFC to a DSA:
• Regular trainings and workshops for DSAs to increase their product knowledge.
• It gives the DSA a good source of income without working for full time.