DSA Full Form

DSA full form in banking is the same as other businesses. Suppose, you wish to apply for a loan and come across an agent somehow. That agent will try to get you to apply for a loan even when you can do so by visiting a bank or other creditor. For beginners or new-to-credit individuals, this is not a scam. In fact, the agents who help you get a loan from a lender are direct selling agents or DSA.

Now that you are aware of bank full form of DSA, let’s understand who a DSA is. In banking, a DSA is a person who works as a referral agent for a bank or non-banking financial company (NBFC).

A DSA’s job is to find potential borrowers or investors for the lender they represent. DSAs will look for people who want a loan. These people are then directed to the concerned lenders as leads and the loan process is initiated.

For this effort, DSAs receive a payout from lenders, which is a percentage of the type and amount of loan. This payout is a great way to earn some extra money. DSAs are known as business correspondents in rural areas.

Now that the DSA meaning clear to you, here are other things that DSAs do apart from onboarding potential customers:

• Gather the filled-in loan application along with the required documents from their leads.
• Run a preliminary check of the application and the documents to ensure they are genuine.
• Upload/ submit the gathered application form and documents. 
• Provide their DSA code so that the application can be traced back to them.

Benefits of Being a DSA

• Being a DSA or a business correspondent helps you earn extra income. The commission varies from lead to lead and lender to lender.
• It gives you a chance to run your own business with the minimum cost and very little risk involved.
• Higher education is not a mandatory requirement. The bank/NBFC generally provides the training.
• Flexible working hours.

Benefits for Customers Opting to Apply for a Loan through a DSA

• Any issues are instantly addressed by the agent.
• Wide variety of loan options to choose from according to your need and capacity.
• The DSA also helps in after-sales service.

Each lender has its own registration process. The common steps involved are:

• Visit the concerned bank, NBFC, or lending platform and submit your application.
• Make the payment as fixed by the lender.
• On successful payment, the bank, NBFC, or lending platform will contact you and ask you to furnish certain documents.
• Your documents will be verified by the lender. 
• A legal team will begin the due diligence process and will also check your CIBIL score and credit history.
• On successful background check, a DSA registration agreement will be sent to you with the right stamp duty.
• You will have to fill in the required details and sign the agreement before submitting it.
• The lender will issue a DSA code to you.
• You can start uploading loan documents.

You will be required to submit the following documents for DSA Registration:

• Identity proof such as Aadhaar Card, PAN, Passport, Voter ID, etc.
• Address proof such as Utility Bills, Aadhaar Card, Passport, etc.
• Details of your banking transactions for the last 3 months.
• Form 16/ Income Tax Returns (ITR) details.
• Education qualification certificates from school and college.
• Registration details of the Firm if you are applying to an institution.
• GSTIN details (if applicable).
• 2 passport-size photographs.

The eligibility criteria to become a DSA are mentioned below:

• The applicant should be a salaried or a non-salaried individual.
• The applicant must be an Indian citizen.
• The applicant must be aged at leats 18 years old or above.
• The applicant does not need any degree in finance/ banking.
• The applicant must have a detailed knowledge of the products they will be selling.
• The credit score of the applicant must be high.