Last updated 12 Nov 2026
You can get a loan in three ways: apply straight to a bank or NBFC, go through a DSA (direct selling agent) or connector who sources files for lenders, or use an online loan aggregator that compares lenders for you. In every case the lender decides, prices, sanctions and pays out the loan. What changes is who helps you choose, how many lenders you can see, and how much of the paperwork someone else follows up for you.
This guide explains each route in plain terms, who pays whom, how digital lending is regulated, the advantages and drawbacks of each, and a checklist to tell a genuine service from a risky one.
The three routes in one table
Aggregator, DSA and direct application compared
| Point | Applying directly | DSA or connector | Loan aggregator (online platform) |
|---|---|---|---|
| What it is | You deal with one bank or NBFC, at a branch or on its app | An individual or firm that sources loan files for one or more lenders | An online platform that compares lenders and routes your application |
| Choice of lenders | One | Usually a few, depending on the agent's tie-ups | Several partner lenders in one place |
| Who decides the loan | The lender | The lender | The lender |
| Who follows up the file | You | The agent, to a varying degree | Depends on the platform; at LOANZ 360, one advisor follows the file end to end |
| Where the money goes | Into your bank account | Into your bank account | Into your bank account |
| Main risk | You may not know what other lenders would offer | Advice may lean toward the lenders the agent works with | Same: ask which partners it works with and how it is paid |
What each one is
Applying directly
You approach the lender yourself. You see only that lender's products, and nobody else is involved. This works well if you already know the lender, have a salary account there, or want to compare nothing. The cost is your own time: you gather documents, answer questions and chase status.
A DSA or connector
A DSA (direct selling agent), connector or channel partner introduces borrowers to a lender and often helps with documents. They act under an arrangement with the lender, and the lender stays responsible for the loan and for how the borrower is treated. A good agent saves you running around. A weak one may push the product that suits the agent rather than you.
A loan aggregator
An aggregator is an online platform that lets you compare what several lenders offer and applies on your behalf with the lender you choose. It is not a lender and does not sanction loans. Under the RBI Digital Lending Directions, such platforms fall under the idea of a lending service provider (LSP): an agent of a regulated lender that carries out part of the lending process, such as sourcing, collecting documents or servicing.
Who pays whom
In general, lenders pay sourcing partners such as DSAs and aggregators for loans that are disbursed. The borrower does not normally pay the lender for being introduced. This is how most of the market works, and it is the reason to ask any intermediary one clear question: how are you paid, and does it change which loan you recommend?
- The lender sets its own charges, such as processing fee, foreclosure charges, penal charges and valuation or legal fees. They are on the Key Fact Statement (KFS) you should receive before you sign.
- Never pay a stranger money to "release" or "approve" a loan. Approval is the lender's decision, and genuine lenders do not ask for advance payments to a personal account.
- Whatever route you use, compare offers on the APR (annual percentage rate) in the KFS, not only on the headline rate.
How this is regulated
Banks and NBFCs are regulated by the Reserve Bank of India. For digital lending, the RBI has issued Digital Lending Directions that apply to regulated lenders and to the lending service providers they use. In general terms, they require that:
- the borrower is told, before the loan, which regulated lender is lending and which LSP is involved;
- a Key Fact Statement with the all-in cost (APR) is given before the contract;
- loan amounts are paid directly into the borrower's own bank account, and repayments go to the lender, not through a third party;
- data is collected only with the borrower's informed consent, for a stated purpose, and the borrower can withdraw it;
- limits are not raised automatically without the borrower's explicit request;
- a grievance route exists with the lender and, if unresolved, with the RBI.
Read the current text yourself on rbi.org.in, because the directions are updated. You can also read the platform's own digital lending disclosures and the rules that protect borrowers.
Pros and cons
Advantages and drawbacks of each route
| Route | Advantages | Drawbacks |
|---|---|---|
| Applying directly | No middle layer; you control the application; useful if you already bank with the lender | One offer only; you do the follow-up; easy to miss a better fit elsewhere |
| DSA or connector | Personal help with papers; local knowledge; may reach several lenders | Quality varies widely; advice may be tied to the agent's lenders; you must verify the agent is authorised by the lender |
| Loan aggregator | Many lenders compared in one place; eligibility matched before you apply; status tracked online | You should still check which lenders are partners, how consent is handled and what the final offer costs; a comparison is only as good as the data behind it |
Is it safe? A checklist
- The loan will be decided and paid out by a named regulated bank or NBFC, not by the intermediary.
- You are shown the lender's name before you commit, and you receive the Key Fact Statement.
- The money goes into your own bank account, never to an individual.
- Nobody asks you for money before the loan is sanctioned to "process" or "release" it.
- You are asked for consent item by item, and you can say no to extras.
- The platform does not ask for access to your phone contacts, gallery or files beyond what the loan needs.
- There is a clear grievance route and a named officer, and you can find the privacy policy and terms.
- Nobody pressures you with "offer ends today" or promises approval before looking at your papers.
- Personal data is masked on screen and stored in India, and you can ask for it to be corrected or deleted.
How LOANZ 360 works
LOANZ 360 is a loan aggregator, not a lender. It is an online loan comparison and application platform that works for partner banks and NBFCs as a lending service provider. Every loan is decided, priced, sanctioned and paid out by the lender, into your own bank account.
- You share details and agree to a clear consent notice, item by item. Nothing is checked or shared without consent, and you can withdraw consent as easily as you gave it.
- Before any application goes to a lender, LOANZ 360 compares your details with each partner lender's published eligibility criteria, so you apply only where you are likely to qualify. This helps avoid unnecessary credit enquiries; too many lender checks in a short time can lower your score.
- Our team prepares a credit assessment summary before the file reaches a lender.
- You choose where to apply. One advisor follows the file end to end: documents, lender questions, sanction and disbursal. You track status in your account.
- After disbursal, active EMIs can be tracked in your account with due dates and reminders.
LOANZ 360 finds customers through its partners (DSAs, connectors and channel partners) and its own sales team, and loan officers process the files. Read more on how it works and how we rank offers.
Which route suits you
Situations and a sensible starting point
| Your situation | A sensible starting point |
|---|---|
| You bank with a lender and want a small top-up | Ask your own lender first, then compare once elsewhere |
| You want to compare several lenders without many branch visits | An aggregator that shows eligibility before you apply |
| Your papers are complex (self-employed, irregular income, property issues) | A DSA or an advisor who follows the file, with a lender you have verified |
| You are unsure whether you will qualify | Check eligibility first; avoid many separate applications |
Try the eligibility check, or learn how to read a loan offer in key fact statement and APR.
Frequently asked questions
Is a loan aggregator the same as a lender?
No. An aggregator does not lend its own money and does not sanction loans. It compares lenders and passes your application to the one you choose. The bank or NBFC decides, prices and pays out the loan into your account.
Do I pay the aggregator or the DSA to get the loan?
In general, lenders pay sourcing partners for loans that are disbursed. Do not pay anyone an advance to release or approve a loan. Ask any intermediary in writing how it is paid and what charges the lender will apply, and read the Key Fact Statement.
Is applying directly cheaper than going through an intermediary?
Not by default. The lender sets its charges and rate by product and profile, not by how you reached it. Compare the APR in the Key Fact Statement across offers, whichever route you use.
How do I know a DSA is genuine?
Ask which lender they act for, ask for the lender's authorisation in writing, and confirm with the lender directly. Pay no money to the agent personally, and be wary of anyone who promises approval before seeing your documents.
What does the RBI require of digital lending platforms?
In general, disclosure of the lender and the platform, a Key Fact Statement before the contract, disbursal straight to your bank account, consent-based data use and a grievance route. Read the current Digital Lending Directions on rbi.org.in.
Will using an aggregator lower my credit score?
Checking your own score does not lower it. Each lender enquiry may be recorded, and too many lender checks in a short time can lower your score. Matching your details to lender criteria first helps avoid unnecessary enquiries.
Whom do I complain to if something goes wrong?
First the lender and the platform, using their grievance routes. If you do not get a satisfactory reply, you can approach the RBI complaint mechanism.
Related reading: how LOANZ 360 works, lending partners, digital lending safety, borrower rights and grievance, key fact statement and APR, loan marketplace in the glossary, why loans get rejected, loan eligibility and FOIR, editorial policy.