NBFC DSA denotes Non-Banking Financial Companies Direct Selling Agents. NBFC DSA Registration refers to the registration of a person working as a referral agent for NBFCs and banks. In rural areas, they are called Business Correspondents. The Direct Selling Agent helps find potential customers for banks or NBFCs they represent. Leads generated forwards to the concerned bank or NBFCs. In this article, we shall completely understand NBFC DSA Registration.

Eligibility criteria to obtain NBFC DSA Registration

One should follow the following eligibility criteria to obtain NBFC DSA Registration in India:

  • The person should be an Indian Citizen
  • He should be above 18 years of age
  • Should be willing to work in public dealing
  • Knowledge about financial products
  • Must have good communication and coordination skills
What are the benefits of becoming an NBFC Direct Selling Agent?

The following are the benefits of becoming NBFC DSA:

  • It ensures scope for additional income, but the amount may vary from lead to lead
  • Allows establishing new business with minimum risk and cost
  • They provide flexible working hours
  • There is no demand for higher qualifications
  • Respective banks/NBFCs provide skill training
Benefits of NBFC DSA to customers

It offers various benefits to customers. The benefits include:

  • The direct selling agents assist with the issues and queries of customers
  • They allow customers to choose the appropriate loan as per their budget
  • Excellent post-sales assistance is provided by Natural Selling Agents to customers.
Benefits of DSA to financial institutions

DSAs are beneficial to financial institutions in the following ways:

  • Ensure ease in the local approach
  • Identify and shortlist potential customers
  • Improve awareness regarding the financial products provided by institutions to the local people
  • Assist people who need loans efficiently
  • Perform initial verification and register the needs of clients
Duties of NBFC DSA

Their duties are as follows:

  • Collect the fill the loan application from the clients along with the documents required
  • Perform a preliminary check for both the application and documents collected
  • Ensure that the documents collected are genuine and valid
  • Upload or submit the application as well as the documents
  • Provide their DSA Code that allows tracking the application
Documents required for NBFC DSA Registration

To obtain NBFC DSA Registration, the following documents are required:

  • The Aadhaar Card of the applicant
  • The PAN card of the applicant
  • Driving License
  • Details of bank account like IFSC and account number
Procedure for NBFC DSA Registration in India

Usually, financial institutions such as Banks and Non-Banking Financial Companies use their method to register as Direct Selling Agents in India.

Steps Explained
Submission of application

Firstly you will be required to visit the respective bank, NBFC, or another financial platform to submit the application filled by you. Once the application has been submitted, proceed with payment as prescribed. On the price submission, the concerned bank, the NBFC, or the lending institution will contact you further.

Provide documents for verification

Provide the documents requested by the respective institution. The institution shall then examine and verify the documents submitted against the requirements set by the institution.

Assessment of credit score and approval

After that, the financial institution will conduct due diligence. A team of professionals from such an institution will perform the process of due diligence and will determine the CIBIL score and the applicant’s credit history. If the institution approves the form and submitted documents, the bank shall dispatch a legally attested agreement of NBFC DSA Registration to the applicant.

The final process of the loan

The applicants should fill out the details requested in the manner the agreement prescribes. After agreeing to the terms and conditions, the applicant should sign the deal. Then, submit the signed contract to respective institutions. On obtaining the agreement, the institution shall give the DSA code, which would be used as a reference number to monitor the status of the loan application. Once the DSA code is secured, the task of uploading loan documents can be performed by the agent.

A direct selling agent is pivotal in representing lending institutions for potential clients or credit seekers. Their fundamental objective is to promote and sell the financial products of the lending institution. Therefore, every lead they generate allows them to gain some income (some % of the actual loan amount). The services extended by the Direct Selling Agents are taxable under the Reverse Charge Mechanism.

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