Technology has pervaded all facets of our personal and professional lives, and banking is no exception. From instant digital money transfers to online personal loans, customers these days want everything served on their laptop or smartphone screen. Who wants to suffer the hassle of visiting a bank branch, right? However, some of us still put a value on human interactions. These people prefer traditional ways of interacting with their financial institutions. This means that they would rather go for a DSA personal loan than an online personal loan.
DSA personal loan vs online personal loan
A DSA personal loan or direct sales agent personal loan refers to a physical form of buying a financial product such as an insurance policy or a personal loan. This old school process means you must meet an agent or representative of your bank and seek their help to avail yourself of a DSA personal loan. If you want a DSA personal loan, you have to schedule an appointment with the agent, talk over the loan details, and wait for the agent to submit the application. Application processing for a personal loan DSA registration takes around 30 days.
Meanwhile, getting approval for an online personal loan is something you can do by yourself. Just visit the website/ app of your lending institution and complete the application form — your loan will be credited within 24 hours*.
Additional Read: All you need to know about online loans
Here are a few other things to consider when comparing a DSA personal loan vs an online personal loan:
1. Convenient online tools or bank agents?
Every non-banking financial company (NBFC) and banking institution have their websites and mobile apps to make the personal loan application process easy for their customers. These apps and websites ensure that you do not have to leave the comfort of your home to apply for an online personal loan.
Meanwhile, for a DSA personal loan, you are entirely dependent on your agent for filing your documents and getting your application processed.
2. Paperless or painful?
Getting an online personal loan entails filling out the application on the lending institution’s website/ app and submitting it at the click of a button. This is a completely paperless process with little room for human error. Since you will be using electronic copies for all the documentation you need to file, there is no scope for loss or damage to your documents.
On the other hand, a DSA personal loan application can take a fair bit of time. The one advantage of a DSA personal loan offer is that you can talk to a knowledgeable agent about all the terms and conditions in detail.
3. Quick turnaround time
Online personal loan applications remove all human intervention from the initial stages of the process; hence the turnaround time is much faster than a DSA personal loan application. In addition, since all your details and documents will be processed by AI-backed software, the time for approval is drastically reduced. This is especially beneficial in cases where applicants need funds immediately for a medical condition or the consolidation of another loan.
However, a DSA personal loan application requires human intervention at every stage. Not only does this make your application prone to errors, but it also lengthens the time for approval.
4. Multiple options
Since all lending institutions have a lot of information available on the internet, you can quickly check out and compare their personal loan schemes. You can check out various personal loan interest rates, tenors, the minimum and maximum loan amounts, and personal loan eligibility criteria. This will allow you to get a personal loan that best suits your repayment capability.
In contrast, a personal loan DSA registration is fixed and does not offer too much wiggle room if you change your mind later. The job of a direct sales agent is to find potential customers for the bank they represent. Thus, you will have to meet multiple agents from different banks if you want to apprise yourself of all the options available in the market.
Summary: Opting for an online personal loan is a solemn obligation because the borrower must repay the amount as EMIs while also managing their other expenses. In such a case, having an easy application process and quick loan disbursal comes as a relief for the customer who might already be going through many financial troubles. You can also choose to get a DSA personal loan, provided you don’t mind waiting a tad longer for your application to be approved and the loan amount to be credited into your account.
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*Terms and conditions apply