Ever been in a position wherein you apply for a loan from a bank, not directly with the bank but through an agent? Ever wondered why this person is trying to get you to apply for a loan when you can do it by visiting a bank or a non-banking finance corporation? Well, for starters, more often than not, this is not a scam. People who help you procure a loan from a bank or an NBFC are direct selling agents or DSA. The job of a DSA is to find potential customers for the bank they represent. To do this, DSAs will look for people who are in the market for a loan. These leads are then directed to the concerned bank or NBFC and the loan process is taken forward. For the effort put in by the DSA, a payout is provided. This payout is a percentage of the type of loan and the loan amount. And this payout is a great way to earn a little extra cash. In rural areas, DSAs are known as business correspondents.
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