Direct Selling Agents (DSA) are independent agents hired by financial institutions to sell loans and other financial products such as insurance and investments.
They earn commissions and bonuses when their clients avail financial services from their suggested bank or NBFC. Also, they can earn bonuses for referrals. So, if you are looking for start a DSA Business, check the eligibility first and proceed with the steps listed below.
Here is the criteria to check whether you are eligible to be a DSA:
The most crucial part of starting a DSA business is having a great network.
There are a few things that you need to know when you are looking for how to start a DSA business and be successful.
You will need to create a channel, find leads, and learn the ropes of marketing. Thus, follow the step-by-step process below to start a DSA business with ease.
Once you get the DSA Code, you can use it for uploading and submitting loan documents.
The DSA Code is only valid for the state you applied it for.
For example, if you applied in Rajasthan, you can only use your code in the loan applications for the banks in Rajasthan.
(If you expect your annual income to be below Rs. 20 lacs, you can skip it. But, if you expect it to be above Rs. 20 lacs annually, you must apply for GST Registration).
The next step is understanding the industry. For this purpose, you will need to find out:
Don't worry you will not have to search anywhere else for all this.
Here is all you need to know.
According to the Economic Times, the Indian Direct Selling Industry crossed US $3.25 Billion and ranks 12th globally.
Home Loans and Auto Loans have a huge demand in India. Moreover, the service sector credit also grew from 3.8% in 2021 to 16.5% in 2022. The data shows the strong demand for loans in India. Therefore, it is safe to say that the market has good potential and is not saturated.
Interestingly, starting a DSA business does not require any initial deposit, setup cost or investment.
The only investment you might need is for setting up your office if you want to.
The role of a DSA is not only to connect borrowers to lenders but also to do the following critical things:
Once you have figured out the basics of the industry, you must plan your business properly to be successful.
Therefore, when starting a Direct Selling Agent business, outline the goals, objectives and strategies for your business.
The next step is setting up your office.
If you are applying for a DSA in a Nationalized Bank, you must rent the office space as they have stricter norms.
But, if you are applying for DSA in a Privatized Bank, you can set up the office in your home unless stated otherwise.
The minimum area you will require for setting up a DSA office is 100 sq ft. - 150 sq. ft.
After that, make sure you have all the necessary things to keep in your office and set it up.
There are many ways to find clients when starting a Direct Selling Agent Business.
You can use your social media accounts, post flyers, or even go door-to-door.
Direct Selling Agents have the opportunity to network with people in their communities and meet new people as they go about their day.
You can network in many different ways. You can attend networking events, join groups on LinkedIn, and reach out to people through social media. The key is to be genuine and respectful when reaching out to someone for the first time.
DSA’s get monthly Payout from the bank they are associated with. The percentage of Payout differs from bank to bank but on average it is around 2-3% of the loan amount per application.
Thus, if your lead is applying for a loan of Rs. 2 Crores, you can get a payout of up to Rs. 2 lacs - Rs. 3 lacs on approval.