A personal loan requires zero collateral and offers instant finance when you apply online. You can use it for any purpose, be it education fees, travel, wedding expenses, home improvement, or medical needs.
However, there are two ways you can get financing via a personal loan. Read on to know what the differences are between a regular personal loan and a DSA personal loan.
Who is a DSA loan agent?
A DSA is a Direct Selling Agent. Personal loan DSAs may work with one or more banks or financial institutions. Their job is to act as a bridge between lenders and borrowers. They help lending institutions get customers and help you get a loan. The loans that you get via such an agent are called a DSA loan.
Which is better: A regular personal loan or a DSA loan?
While you can get a personal loan through a loan agent or online or offline directly from the financial institution, both have their pros and cons. Here are the various factors to consider before choosing the ideal route.
o Convenience and customer support
A DSA loan is helpful if you prefer human contact and are new to credit. A personal loan DSA can help you with applying for a loan. These agents also offer doorstep services, which means you can get assistance right at home. They can also guide you in understanding the lender’s eligibility criteria and in checking your credit score.
These agents may also be able to give you tips on boosting your credit score if it needs improvement. These professionals will also help you after your application is submitted by letting you know if your application is approved or not. So, they can be a helpful guide in the entire borrowing process.
A DSA may not be able to help you compare personal loan options or get a quick loan in times of emergencies. you can apply for a personal loan online rather than visiting a lender yourself. Simply use a personal loan app like Fibe to apply for a loan in minutes. Lenders have made this process very simple, and you will be able to complete the process on your own with ease.
You can also rely on customer support directly from financial companies, via the app, chat or toll-free number. This way, you can get your queries answered in real time. Once you apply, you can also check your personal loan status online. The speed and convenience offered by digital lenders reduce the need to depend on agents.
o Comparison of personal loan options
A personal loan DSA works for one or more financial companies and earns commissions from them when your loan application is approved and the lender sanctions the loan amount. Thus, they have a vested interest in ensuring you go through with your application with the lender they work with. This means that you will not be able to compare the features of different personal loans in the market unless you work with multiple agents.
When you apply for a personal loan online, you can check the terms and interest rates offered by various lenders. This can help you choose the most affordable loan with a repayment tenure that suits your finances. You can also find loan aggregators online that make comparing your options even easier.
o Security of personal financial data
A DSA is not a representative of a lender but works as a referral agent. Without the security protocols that reputed online lenders have in place, working with such agents can increase the risk of your financial data falling in the wrong hands.
o Time taken to apply and receive approval
It takes longer for your DSA personal loan application to be ready as your agent will talk to you every step of the way and will require physical paperwork to be photocopied and submitted. This human touch at every step usually elongates the timeline.
In contrast, applying for a personal loan online is quicker. You can fill out basic details and submit documents, such as your ID and address proof as well as bank statements, online. This speeds up the process and with AI software, digital lenders can also approve your application on the same day.
As you can see, getting a loan online can be a faster way to access the funds you need, especially when time is of the essence. You can also enjoy more convenience and security by choosing a top digital lender such as Fibe. Within just 10 minutes, you can apply for up to ₹5 lacs on our Personal Loan App and use it to upgrade your life.