A loan agent also known as a DSA (direct selling agent) is a person representing a particular bank or NBFC who helps people and small business owners with the loan application process. A loan agent has a detailed knowledge of lending products, banking industry bylaws and ground rules, and the necessitated attestation for bagging a loan. Although the entire loan application process can be handled over the internet, some potential clients prefer to apply for a loan through a loan agent because people need a trustworthy human to handle their complex and at times, costly transactions. One more reason people choose a loan agent is because of their transparency and no-pressure attitude and they make the complicated process easy for you with their excellent communication and interpersonal skills, as compared to you going to the bank and barely understanding the process that’s vaguely explained to you by the bank employees.
A loan agent is well-informed about all of the various types of loans that the bank or NBFC they are affiliated with has to offer and can counsel their potential clients on the suitable loan options as per their needs. A loan agent also advises their potential client about what sort of loan they might be eligible to get. Now let’s have an in-depth look at what exactly a loan agent does –
- Meeting with clients in person – They meet their potential clients in person and do a thorough background check and examine the client’s financial records like credit scores and then determine just how much money the client may be able to borrow.
- Help you decide the type and amount of loan suitable for you – Once the client’s financial records are clear, they will guide you to determine which loan is suitable for the person or the business. Some people may face financial problems that can make it difficult for them to opt for a loan using traditional options. In such situations, a loan agent will probe for alternatives. Once they’ve found an appropriate loan, they explain to the client what all financial regulations are involved.
- Help you resolve financial issues – They will also help their client resolve any financial issue, from creating a plan to pay off debt, to finding a financial aid program. Financial matters can be mind-numbing to handle, so a steady demeanour, one of the best qualities of a loan agent, is helpful.
- Preparing the right documents – Once the client’s loan has been approved, the loan agent is responsible for preparing the required attestation and the loan closing attestments. Some loans require more attestation than others, like, secured loans generally require more paperwork as compared to unsecured loans. Mortgage loans require a giant pile of documents due to the numerous federal, state, and local regulations that concern them.
For instance, a loan agent can earn a 1% commission for completing a personal or business loan of Rs 10 lakhs. If the client’s loan amount is larger, the loan agent’s pay-outs rate is higher. For loan amounts over 30 lakhs, the agent may earn 1.5% commission, and for amounts exceeding 50 lakhs, 2% can be offered.