DSA partners are individuals who work as intermediaries between lending firms and customers. DSA full form is Direct Selling Agents. Most often, they are the only form of communication between a customer and their bank. DSA agents sell products or services on behalf of their lending firms and earn commissions in exchange for their services. They help loan applicants streamline their processes, verify documents, and answer customer queries. They may also help negotiate better loan terms for their clients.
Popular Financial Products that DSA Agents Sell
DSA loan agents can sell a variety of financial products, depending on the kind of lending institution they have partnered with and the license they hold. Some of the most common financial products sold by DSA agents are as follows,
A home loan, also known as a mortgage loan, is a type of loan that allows you to purchase a new property or renovate an existing one. Home loans typically have a long loan tenure, ranging from 10 to 30 years and more.
Personal loans are a type of loan that can be used for a variety of purposes like consolidating debts, financing a wedding, purchasing a house, planning a dream vacation, paying for college, or in case of a medical emergency. Since personal loans do not require collateral or an asset, it is best to consult a personal loan agent to ensure that a borrower has the repayment capacity to clear their debts.
Business loans are financial instruments to help businesses finance their day-to-day expenses. It can be secured or unsecured. Businesses can use their funds to hire new employees, rent a bigger space, upgrade their inventory, invest in new technology, purchase equipment, or meet short-term cash flow needs.
Loans Against Property:
A loan against property is a type of loan where borrowers pledge their property as collateral to avail of the loan amount. The amount depends on the type and market value of the property. Loan applicants can avail of around 50% to 80% of the property’s market value as a loan.
As their name suggests, car loans are a type of loan that borrowers avail of to purchase cars. Usually, they have a shorter tenure than home loans. Car loans are viewed as secured loans, for the borrower’s vehicle serves as collateral until they repay the loan amount in full.
Small Ticket Loans:
Small ticket loans, also known as microloans or payday loans, are offered by non-banking financial companies (NBFCs) to help borrowers meet urgent financial requirements. Individuals who do not have the time to avail of loans through the traditional way can opt for small ticket loans. The repayment period is generally short for microloans. It is not the best way to finance one’s purchases as the interest rates are too high.
You can use credit cards to make purchases online or in physical stores. Credit cards allow individuals to borrow funds from a lending institution with a pre-determined limit. At the end of every month, you have to pay your balance, or the debt is carried over to the next month. Credit cards typically charge higher interest rates than other types of loans.
One can borrow funds from lending firms to finance their education. If you avail of a loan to pay for your college fees or undergo a training program, it is known as an education loan. A loan applicant wanting to avail of education loans must have a strong academic record and must have received admission to a prestigious college.
Why are Specialized DSA Agents in Demand?
Choosing a specific product to sell or a specific niche to specialize in can prove to be very advantageous for DSA agents. Here are a few reasons why DSA partners can consider specializing.
Increased Knowledge and Expertise:
By offering a particular variety of products like home loans, personal loans, or car loans, DSA agents acquire the most extensive knowledge in that area. Clients are more likely to trust their voice and they can also offer better product recommendations to their customers.
DSA agents earn a percentage from the total amount of every loan product they sell. Some products like home loans, business loans, and working capital tend to offer better commissions than others. By choosing to sell these services, DSA agents can make more money.
DSA partners can build long-term relationships with their clients by offering specialized services. They can tailor their marketing approach to appeal to a specific target audience, thereby increasing sales and ensuring the highest customer satisfaction. By selling a specific kind of loan, DSA partners can earn more referrals.
More Efficient Marketing:
Specializing in offering a kind of loan product allows DSA agents to stand out in a crowded marketplace. This can help them tailor their marketing efforts to a specific demographic, thereby generating more leads. For example, small to mid-range business owners would be most likely to look for working capital, hence they would benefit the most from taking help from a business loan DSA. Specialized DSA agents can establish themselves as thought leaders in their domain and attract more clients.
When shopping around for lending firms, make sure to partner with a reputed lender. Well-established lending institutions offer generous stipends, flexible working hours, better networking opportunities, and a wide variety of products for your clients. Andromeda Loans is one such reliable lending firm. They are known for their quality products, quick loan disbursals, and cutting-edge technology.