Instant Personal Loans are unsecured forms of credit that financial institutions sanction based on a borrower’s repayment capacity, income level, employment history, financial commitments, etc. These loans can efficiently serve a host of needs as they have competitive interest rates, flexible repayment terms, and with no end-use restrictions. 100% digital application procedures like ours make these loans easily accessible to those who need them. However, while looking for a
Personal Loan, aspiring borrowers have two application options – online application through an app or website or physical application through a DSA loan agent.
Let's understand the differences between these options.
What is DSA in Banking?
Since the turn of the century, technology has been infused in every facet of our professional and personal lives, and the lending sector is no exception. From instant money transfers and online
KYC verification to online loan applications, a lot of customers prefer doing things on their smartphone or laptop screen.
However, some people still believe in the value of face-to-face interactions. Those who prefer interacting with a customer representative physically can go for a Personal Loan DSA instead of making an
online loan application.
DSA full form in loan terminology is a Direct Sales Agent, and is a physical means of taking a Personal Loan from a financial institution. The loan seeker meets a representative or agent of the NBFC and seeks help to get a loan they require. While looking for a Personal Loan DSA, applicants must schedule an appointment with the loan agent, discuss the loan details, and wait for the DSA to submit the application. Processing through this method can take some time but understandably, a lot of people prefer establishing a relationship with their creditors.
Also Read: Busting the Myths about Online Personal Loans On the other hand, applying for a loan online is something a loan seeker can do by themselves. They just need to visit the NBFC’s website or download their app to complete the online application process. Online applications are hassle-free and faster ways of obtaining the required funding.
Differences Between Loan DSA vs Online Application
Here are a few points of comparison between Personal Loan DSA vs online Personal Loans:
Convenience of Online Tools vs Loan Agents
All reputable NBFCs and financial institutions have their mobile apps and websites to make the loan application procedure easier for customers. These online application forms ensure that loan seekers apply for a Personal Loan online without leaving the comfort of their homes. Meanwhile, those looking for DSA loans depend on agents to fill out their forms, submit the documents, and get their applications processed.
Paperwork or Paperless
Applying for a Personal Loan online entails filling out a digital application form at the NBFC's website or app and submitting it with a few clicks on a button. The entire process is completely paperless. Since the online application process involves digital copies of the required documents, there is no chance of damage or loss of the papers.
On the other hand, a Personal Loan application through a DSA loan agent takes a fair amount of time and involves physical paperwork. However, one advantage is that applicants can interact with a knowledgeable representative about the loan terms and conditions they are getting.
Turnaround Time
Online loan processing removes all human intervention from the initial application stages to disbursal. Even while looking for a loan, prospective applicants can use a
Personal Loan eligibility calculator to decide on an adequate loan amount and apply according to their repayment capacity. Hence the turnaround time for an online application is much faster than a DSA loan due to a fully automated system. Moreover, since an AI-backed software system processes all the documents and details, it drastically reduces the approval time. Therefore, online application is especially beneficial for those who immediately need funds for a medical emergency, spontaneous plan, or last-minute expense.
However, a Personal Loan DSA requires human interaction at every stage, which can lengthen the process and delay the approval.
Availability of Options
Lending institutions post sufficient information on their websites to help customers clear their doubts and proceed with the application procedure. Aspiring borrowers can quickly browse the internet and compare the available loan schemes to make the most suitable decision. For instance, they can use a Personal Loan eligibility calculator from different NBFCs to see how much they can borrow and know their interest rates. The power of the internet makes a whole lot of options available to the loan seeker, helping them choose the best loan plan according to their loan requirement and repayment capacity.
A DSA's job is to find potential clients for the finance company they represent. This can limit the loan seeker's choice of loan plans, or they must meet several agents from multiple loan providers to get the best loan offer. In case you have the DSA agent visit you for document collection, please ask them what their DSA code is to ensure they’re kosher. Each agent gets this code from a lending institution. That means their registration is fixed, and they can offer loan plans from a single NBFC only.
Also Read: Working Women in India - Get instant Personal Loan
CONCLUSION
Now that you understand the meaning of DSA in banking, it’s important to remember that many people apply for a Personal Loan when they need immediate funds to cover the required expenses while managing other obligations. In such a situation, an easy online application process facilitates quick funds without physically visiting the NBFC's office or meeting their agents.
Online application is a big relief for customers who don’t have the luxury of time. While working with a Personal Loan DSA can make the application process a tad longer: it establishes a personal relationship between the applicant and the financial institution.
