How to Become a Gold Loan DSA?

Gold is often viewed as a valuable investment and seen as a safe asset in times of economic uncertainty. It is also a great option to diversify investment portfolios and can be liquidated in times of need. Gold loans are a category of secured loans, where borrowers pledge their gold jewelry or other items as collateral. Lending institutions offer a loan amount based on the value of the gold pledged as collateral, typically a certain percentage of the market value of the gold. The borrower returns the loan amount after a certain repayment tenure with interest and takes back the collateral. Gold loan DSAs connect borrowers to lending institutions and help them with their loan application processes. 

Why do banks hire gold loan DSAs?

Banks and NBFCs and direct selling agents often partner together to sell financial products. DSA agents help increase their sales while earning a percentage of the loan amount as a commission in exchange for their marketing services. DSA loan agents help loan applicants with their paperwork, offer financial advice, and help them to choose the best loan product. 

In the case of gold loans, DSA agents are also responsible for evaluating the market value of the gold pledged and negotiating better loan terms for their customers. Due to the limited manpower of financial firms and their inability to offer one-on-one advice to their customers, DSA agents fill in the gap and are immensely popular nowadays. 

Role of a gold loan DSA

• Promoting products: Gold loan DSAs use advertising campaigns, outreach techniques, and direct marketing tools to promote their lender’s products. The key motive is to raise awareness about their lending firm’s products and to make sure to highlight their products’ benefits in front of potential customers. 

• Acquiring customers: The primary responsibility of gold loan DSAs is to acquire new clients and sell loans to them. DSA agents often have one-on-one interaction with their customers, resolving their queries and guiding them through the loan sanction. Banks and NBFCs partner with them because their personalized approach attracts more clients. 

• Verifying information: Once a customer has expressed interest in buying a loan product, a loan agent would guide them through the application process. A gold loan DSA agent is also involved in checking their client’s gold jewelry, evaluating its market value, checking their credit scores, verifying their documents, and ensuring that everything is in order. 

• Disbursing loans: After the loan sanction is approved, a gold loan DSA is also responsible for disbursing the loan amount, advising their clients on how to pay it back and choose the best repayment tenure, and providing other necessary guidance.

• Managing customers: Like every other business, financial firms also have to offer excellent customer service to retain their customers in the long run. DSA agents are often the one-stop destination for all their client queries. They are available during office working hours, for clients to reach out to them and clarify their doubts. Gold loan DSAs also follow up with their existing clients, check in if they miss many of their monthly EMIs, and address any other grievances. 

Eligibility criteria to become a gold loan DSA

• Age: You must be a legal adult i.e. above 18 to work as a gold loan DSA. 

• Nationality: You must be an Indian citizen to work as a gold loan agent anywhere in the country. 

• Qualification: You do not need any college degrees in finance, banking, or accounting to work as a gold loan DSA. However, you do need strong persuasion skills to convince customers to invest in your lender’s loan scheme. Make sure to go through your partnered lender’s training modules to learn about their products. 

• CIBIL score: Although not mandated by a lending firm, you must have good CIBIL scores to work as a gold loan DSA. Unless you have your finances in order, lenders may not trust you to offer financial advice. 

• Additional requirements: It is not a compulsory requirement, but it will benefit you if you can speak the regional language of your customer base. You can connect more easily and the sense of familiarity may help you to make more sales. 

Documents required to work as a gold loan DSA

• Identification documents: Aadhar card, Voter ID, PAN card

• Address proof: Passport, driving license, electricity bills

• Income proof: Payment invoices if you worked as a freelancer, salary slips if you worked at an organization, business address proof, and bank statements if you run a business

• Tax details: Form 16 and other income tax documents

• Bank account statements: Your most recent three month’s bank transaction details

• Registration form: Your lender’s DSA application form filled in with all your basic details

How to apply for gold loan DSA registration online?

To apply for gold DSA registration online, head to the official website of the bank or NBFC you want to partner with. Fill out their ‘DSA Partner Program’ registration form with all your basic and income details. You also have to submit your necessary documents like Aadhar card, Voter ID, PAN card, passport, driving license, and salary slips for verification. If your profile is approved, you will be called in for an interview, where the authorities will assess your capabilities. If you are selected for the role of a gold loan DSA, you will have to sign their DSA agreement and begin selling gold loans. 

To conclude

If you want to work as a gold loan DSA, make sure to choose a reputed firm like Andromeda Loans. There are many perks of beginning your career in a well-established firm. Andromeda Loans offer a vast array of financial products for your clients to choose from. They also offer generous compensation, better networking opportunities, and flexible working hours. 

To succeed as a gold loan DSA agent, you must have the resilience and tenacity to keep promoting your lender’s products. It is a great career option for people looking for more flexible working conditions. It is also a bonus that you can choose your own salary, for your monthly amount depends on the number of products you sell every month.