NBFC Lead Gen: SDR Outsourcing vs DSA Network — What Actually Works in 2025
Your DSA just brought you another "hot lead."
Within 5 minutes on the call, you realize:
- They applied to 8 other NBFCs
- They want an ₹80L loan but revenue is ₹12L/year
- They have 2 active defaults
- The DSA gets 3% commission regardless
You reject the lead. The DSA shrugs and moves on. You've wasted 30 minutes.
This happens 40-60 times per month.
DSA networks have been the backbone of NBFC lead generation for decades. But the model is broken.
The problems:
- Incentivized by volume, not quality
- Same leads sent to 10+ NBFCs
- Zero vetting or pre-qualification
- 2-4% commission on EVERY funded loan
- No control over lead quality
- High fraud risk
There's a better way: SDR outsourcing.
At SalesUp, we've helped NBFCs replace DSA networks with dedicated SDR teams, reducing cost-per-loan by 60% while improving lead quality and conversion rates.
Here's the complete comparison and playbook.
The DSA Model: How It Works (And Why It's Broken)
What is a DSA?
Direct Selling Agent (DSA): An individual or entity that sources loan applications for NBFCs in exchange for commission.
How DSAs operate:
- Find potential borrowers (cold calling, referrals, aggregator platforms)
- Collect basic details (name, business, loan requirement)
- Send to 5-10 NBFCs simultaneously
- Wait to see who approves fastest/highest
- Push borrower toward NBFC offering best commission
- Collect 2-4% commission on funded loan
Payment structure:
- No upfront cost (seems attractive)
- Commission only on funded loans
- Commission: 1.5-4% of loan amount
- Example: ₹20L loan = ₹40k-80k commission
Why NBFCs Use DSAs
The perceived benefits:
- Zero upfront cost (pay only on success)
- Instant lead flow (DSAs have databases)
- No team management (outsourced completely)
- Scale quickly (activate 10-20 DSAs simultaneously)
- Market reach (DSAs have local networks)
On paper, it looks perfect: no risk, pay only for results.
But here's what actually happens...
The 7 Hidden Costs of the DSA Model
Cost #1: Low Lead Quality (60-70% Unqualified)
Reality check:
DSAs are paid per funded loan, so they send EVERY lead to EVERY NBFC hoping someone approves.
What lands in your inbox:
- "Borrower wants ₹50L" (but revenue is ₹8L/year - no way to repay)
- "Urgent need" (they've been rejected by 5 NBFCs already)
- "Good credit" (hasn't checked, just assuming)
- "Ready to close" (actually just comparing rates)
Your team wastes time on:
- Initial calls: 15 mins per lead
- Document requests: 10 mins per lead
- Credit evaluation: 30 mins per lead
- Rejections: 5 mins per lead
Average: 60 minutes wasted per unqualified lead
Math:
- 100 DSA leads/month
- 70% unqualified
- 70 leads × 60 mins = 4,200 minutes (70 hours) wasted
- That's 2 full-time employees just processing junk leads.
Cost #2: Lead Leakage (Leads Sent to 10+ NBFCs)
What DSAs do:
Send the same lead to:
- Your NBFC
- 5-10 competitor NBFCs
- 2-3 aggregator platforms (which send to another 10 NBFCs)
Result: The borrower gets 15-20 calls in 48 hours.
Problems:
- Borrower overwhelmed (stops answering)
- Becomes a "rate shopping" exercise (lowest rate wins)
- Your brand gets commoditized (just another NBFC)
- Conversion drops to 5-8% (only fastest/cheapest wins)
You're competing with 15 NBFCs for the SAME lead.
Cost #3: Commission Stacking (2-4% Per Loan)
Scenario: ₹20L working capital loan
Your economics:
- Interest rate: 18% per annum (₹3.6L first year)
- Processing fee: 2% (₹40k)
- Total Year 1 revenue: ₹4L
DSA commission: 3% = ₹60k
Net Year 1 revenue after DSA commission: ₹3.4L
DSA took 15% of your first-year revenue.
Math over 100 loans:
- 100 loans × ₹20L = ₹20 crore loan book
- DSA commission @ 3% = ₹60L
- That's a recurring annual cost for one-time lead sourcing.
Cost #4: No Control Over Messaging or Borrower Experience
What DSAs tell your prospects:
- "They'll approve ₹50L easily" (sets wrong expectations)
- "Processing in 48 hours" (you actually take 7 days)
- "Lowest rates in market" (not true, creates price sensitivity)
- "No documentation needed" (completely false)
Result when borrower talks to you:
- "But the DSA said..." (expectations mismatch)
- "Why do you need so many documents?" (frustrated)
- "Other NBFCs are offering lower rates" (DSA is playing you against competitors)
You have ZERO control over what the borrower was promised.
Cost #5: Fraud Risk (Fabricated Documents and Identities)
DSA fraud tactics:
- Document fabrication: Fake GST returns, inflated bank statements, forged ITRs
- Identity fraud: Using stolen KYC to apply for loans
- Parallel applications: Same borrower, multiple identities, different NBFCs
- Commission fraud: Inflating loan amounts to get higher commission
- First EMI defaults: Borrower and DSA collude, DSA gets commission, borrower defaults
Industry data:
- 15-20% of DSA-sourced loans show irregularities
- 8-12% of DSA leads involve some form of fraud
- Average loss per fraud case: ₹5-8L
Your risk team spends 40% of time catching DSA fraud.
Cost #6: No Long-Term Relationship or Data Ownership
What DSAs own:
- The customer relationship (you're just a "loan provider")
- The customer database (they'll send to competitors next time)
- Repeat business (borrower doesn't remember your brand)
What you own:
- Nothing. Just a transaction.
Implications:
- No repeat business (DSA will shop them around again)
- No referrals (borrower's loyalty is to DSA, not you)
- No data insights (you don't learn what works)
You're renting leads, not building a pipeline.
Cost #7: Race to the Bottom (Competing on Price, Not Value)
DSA model incentivizes:
- Fastest approval (not best underwriting)
- Lowest rate (not sustainable margins)
- Highest loan amount (not appropriate credit)
Result: Margin compression + higher default risk
Average NBFC margin trends:
- 2019: 8-10% net margins
- 2022: 6-8% net margins
- 2025: 4-6% net margins (due to DSA-driven price competition)
You're competing with 20 NBFCs on the same lead. Only way to win: lower rates. Margins suffer.
The SDR Outsourcing Model: How It Works
What is SDR Outsourcing?
Sales Development Representatives (SDRs): Dedicated professionals who proactively identify, qualify, and book meetings with high-intent borrowers.
How SDR outsourcing works:
- Define ICP (Ideal Customer Profile) with GST data filters
- SDR team sources qualified prospects (not broadcasting to market)
- Personalized outreach (email, calls, LinkedIn)
- Pre-qualification (BANTF framework before passing lead)
- Exclusive leads (only sent to you, not 10 NBFCs)
- Meetings booked directly into your calendar
- Fixed monthly cost (not commission per loan)
Payment structure:
- Fixed monthly fee (₹2.5-3.5L/month)
- No commission on funded loans
- Predictable cost structure
- Scalable (increase/decrease SDR count)
Why SDR Outsourcing Works Better for NBFCs
The real benefits:
- Pre-qualified leads (60-80% meet your credit criteria)
- Exclusive pipeline (leads only sent to you)
- Cost predictability (fixed monthly, not 3% per loan)
- Brand control (messaging aligned with your positioning)
- Data ownership (you own the CRM, relationships, insights)
- Higher margins (not competing on price)
The Head-to-Head Comparison
Cost Comparison (100 Leads Processed)
| Metric | DSA Model | SDR Outsourcing |
|---|---|---|
| Lead Cost | ₹0 upfront | ₹3L/month |
| Qualified Leads | 30/100 (30%) | 70/100 (70%) |
| Conversion Rate | 10% (3 funded) | 40% (28 funded) |
| Avg Loan Size | ₹20L | ₹25L (better quality) |
| Commission per Loan | ₹60k (3%) | ₹0 |
| Total Commission | ₹1.8L (3 loans) | ₹0 |
| Monthly Cost | ₹1.8L | ₹3L |
| Cost Per Funded Loan | ₹60k | ₹10.7k |
| Funded Loans/Month | 3 | 28 |
| Loan Book Growth | ₹60L/month | ₹7 crore/month |
Winner: SDR Outsourcing
- 9X more funded loans
- 82% lower cost per loan
- 11X faster loan book growth
Quality Comparison
| Dimension | DSA Model | SDR Outsourcing |
|---|---|---|
| Lead Exclusivity | ❌ Sent to 10+ NBFCs | ✅ Exclusive to you |
| Pre-Qualification | ❌ None (just contact info) | ✅ BANTF + GST verified |
| Credit Quality | ❌ 50% have credit issues | ✅ 85% clean credit |
| Intent Level | ❌ Rate shopping | ✅ Serious borrowers |
| Documentation Ready | ❌ Have to chase | ✅ Pre-briefed |
| Fraud Risk | ⚠️ High (15-20%) | ✅ Low (<5%) |
| Lead Leakage | ❌ 80% go to competitors too | ✅ 0% (exclusive) |
Winner: SDR Outsourcing (across all dimensions)
Control & Branding
| Dimension | DSA Model | SDR Outsourcing |
|---|---|---|
| Messaging Control | ❌ DSA says whatever | ✅ You define scripts |
| Brand Positioning | ❌ Commoditized | ✅ Premium/value-driven |
| Customer Experience | ❌ Transactional | ✅ Consultative |
| Feedback Loop | ❌ None | ✅ Daily call reviews |
| Data Ownership | ❌ DSA owns database | ✅ You own CRM |
| Repeat Business | ❌ Goes to DSA | ✅ Direct to you |
Winner: SDR Outsourcing (complete control)
Scalability
| Dimension | DSA Model | SDR Outsourcing |
|---|---|---|
| Ramp Up Time | ⚡ Instant (activate DSAs) | 🕐 2-3 weeks setup |
| Volume Control | ❌ Unpredictable | ✅ Predictable (dial volume) |
| Quality Control | ❌ Can't enforce | ✅ Daily coaching |
| Geographic Expansion | ✅ DSAs have local networks | ⚠️ Need data for new regions |
| Cost Scaling | ❌ Linear (3% per loan forever) | ✅ Marginal (add SDRs cheaply) |
Winner: Mixed (DSA for instant volume, SDR for sustainable scale)
When to Use DSA vs SDR Outsourcing
Use DSA Model When:
- You're launching a new product and need instant market feedback
- You're entering a new geography and lack local networks
- You have excess underwriting capacity and need to fill pipeline quickly
- You're testing demand before committing to fixed costs
- Your loan ticket size is very high (₹1 crore+) where 2-3% commission is acceptable
Rule of thumb: DSA model works for volume experiments, not sustainable growth.
Use SDR Outsourcing When:
- You want predictable, high-quality pipeline month over month
- You want to build your brand (not be commoditized)
- You want to own customer relationships (repeat business, referrals)
- You want data insights (what works, what doesn't)
- You want lower cost per loan (60-80% cheaper than DSA)
Rule of thumb: SDR model is for sustainable, scalable growth.
The Hybrid Model (Best of Both)
Smart NBFCs use both strategically:
DSA Network (20% of leads):
- Use for: Geographic expansion, niche segments, high-ticket loans
- Commission cap: 2% max
- Quality filter: Reject unqualified leads, penalize repeat offenders
SDR Outsourcing (80% of leads):
- Use for: Core ICP segments, repeat business, brand building
- Fixed cost: ₹3-4L/month
- Exclusive leads: No lead leakage
Result: 80% of funded loans come from SDR channel (lower cost, higher quality)
How to Transition from DSA to SDR Outsourcing
Month 1: Baseline & Setup
Week 1-2: Analyze Current DSA Performance
- Review last 6 months of DSA leads
- Calculate actual cost per funded loan (include wasted time)
- Identify top 20% of DSAs (if any are worth keeping)
- Measure lead quality, conversion rate, default rate
Week 3-4: Define ICP for SDR Team
- Use GST data filters (revenue, compliance, growth)
- Define BANTF qualification criteria
- Set target: 30-40 qualified leads/month
- Choose SDR partner (SalesUp or build in-house)
Month 2: Pilot SDR Channel
Week 1: Launch
- Onboard SDR team (or SalesUp)
- Provide ICP, scripts, objection handling
- Integrate with CRM
- Start outreach (500-1000 contacts)
Week 2-4: Optimize
- Review first 20 leads from SDRs
- Compare quality to DSA leads
- Tighten ICP if needed
- A/B test messaging
Target: 15-20 qualified SDR leads by end of Month 2
Month 3: Scale SDR, Reduce DSA
Gradually shift allocation:
- 70% DSA / 30% SDR (Month 3)
- 50% DSA / 50% SDR (Month 4)
- 30% DSA / 70% SDR (Month 5)
- 20% DSA / 80% SDR (Month 6)
Cut underperforming DSAs:
- Bottom 50% of DSAs (low quality, high fraud risk)
- Keep top 20% for niche segments
Scale SDR channel:
- Increase outreach volume 2X
- Expand to adjacent ICPs
- Add more SDRs (or increase SalesUp retainer)
Month 4-6: Optimize Economics
Track these metrics:
| Metric | Month 3 | Month 4 | Month 5 | Month 6 |
|---|---|---|---|---|
| SDR Leads | 20 | 30 | 35 | 40 |
| DSA Leads | 80 | 70 | 50 | 30 |
| SDR Conversion | 40% | 45% | 50% | 50% |
| DSA Conversion | 10% | 10% | 10% | 10% |
| SDR Funded Loans | 8 | 13 | 17 | 20 |
| DSA Funded Loans | 8 | 7 | 5 | 3 |
| SDR Cost/Loan | ₹37k | ₹23k | ₹17k | ₹15k |
| DSA Cost/Loan | ₹60k | ₹60k | ₹60k | ₹60k |
By Month 6: SDR channel delivers 85% of funded loans at 75% lower cost.
Case Study: NBFC Shifted from DSA to SDR Outsourcing
Company: NBFC offering ₹10L-50L working capital loans to MSMEs, 50+ branches across India.
Before (DSA-Heavy Model):
- 30 active DSAs
- 200 leads/month from DSAs
- 60 qualified (30% quality rate)
- 8 funded loans/month (13% conversion)
- ₹48k cost per funded loan (3% commission on ₹16L avg loan)
- Loan book growth: ₹1.3 crore/month
Challenges:
- High lead leakage (80% of leads sent to competitors too)
- Fraud cases (12% of DSA leads had document issues)
- Margin pressure (competing on price)
- No repeat business (DSA owned relationships)
What they did:
Month 1-2:
- Audited DSA performance (bottom 50% cut immediately)
- Hired SalesUp for SDR outsourcing
- Defined ICP: ₹15L+ monthly GST revenue, 18+ months vintage, 85%+ compliance
Month 3-4:
- Launched SDR campaigns targeting 1,000 qualified prospects
- Delivered 25 exclusive, pre-qualified leads/month
- Conversion rate: 48% (12 funded loans from SDR channel)
- Maintained 10 best-performing DSAs (5 funded loans/month)
Month 5-6:
- Scaled SDR volume to 40 leads/month
- Conversion rate: 50% (20 funded loans from SDR channel)
- Reduced DSA dependency to 20% (3-4 funded loans/month)
- Total: 23-24 funded loans/month
Results (Month 6):
| Metric | Before (DSA Only) | After (SDR + DSA Hybrid) | Change |
|---|---|---|---|
| Monthly Leads | 200 (DSA) | 40 SDR + 50 DSA | -55% volume, +quality |
| Qualified Leads | 60 (30%) | 35 SDR (87%) + 15 DSA | +67% qualified |
| Funded Loans/Month | 8 | 20 SDR + 3 DSA = 23 | +187% |
| Conversion Rate | 13% | 50% (SDR) / 10% (DSA) | +285% (SDR) |
| Cost/Funded Loan | ₹48k (DSA) | ₹15k (SDR) / ₹48k (DSA) | -69% (SDR) |
| Avg Loan Size | ₹16L | ₹22L (better quality) | +37% |
| Loan Book Growth | ₹1.3 crore/month | ₹5 crore/month | +285% |
| Monthly Lead Gen Cost | ₹3.8L (commissions) | ₹3L (SDR) + ₹1.4L (DSA) = ₹4.4L | +16% cost |
| ROI | - | 285% more loans for 16% more cost | 16X ROI |
Additional benefits:
- Zero fraud cases from SDR channel (vs 12% from DSA)
- 30% of SDR-sourced borrowers took repeat loans (vs 0% from DSA)
- Brand positioning improved (consultative vs transactional)
- Data ownership (insights into what works, continuous improvement)
Cost savings over 12 months:
- DSA commissions avoided: ₹72L (20 SDR loans/month × ₹22L avg × 3% × 12 months)
- SDR cost: ₹36L (₹3L/month × 12)
- Net savings: ₹36L
Plus: 285% more loan volume = ₹3.8 crore additional loan book
What SalesUp Does for NBFCs
We specialize in SDR outsourcing for NBFCs, replacing expensive DSA networks with predictable, high-quality pipeline.
What you get:
- 30-40 exclusive, pre-qualified leads/month
- GST + credit bureau pre-screening (70-80% approval rate)
- BANTF qualification (intent-verified)
- Fixed monthly cost (₹2.5-3L/month)
- Full CRM integration (you own all data)
- No commissions on funded loans
Industries we serve:
- Working capital loans (₹5L-50L)
- MSME term loans (₹10L-2 crore)
- Invoice financing (₹10L-1 crore)
- Machinery loans (₹20L-1 crore)
Average results:
- 40-50% lead-to-loan conversion (vs 10-13% from DSA)
- ₹15-20k cost per funded loan (vs ₹45-60k from DSA)
- 3-4X increase in funded loans
- 60-70% lower acquisition cost
Cost: ₹2.5-3L/month (no commissions)
Book a demo to see how we can replace your DSA network and 3X your loan book in 90 days.
Your loan products are solid. Your underwriting is tight. You just need better leads.
Stop paying 3% to DSAs. Start building your own pipeline.