In short
A DSA (Direct Selling Agent) sources files for lenders and is paid commission by the lender — ideal for standard loans up to a few crore, and free to you. A debt advisory is mandated by the borrower to structure the raise, run several lenders in parallel, and negotiate terms, for a success fee of roughly 0.5–2%. Rule of thumb: under ₹5 crore and standard, use a DSA or marketplace. At ₹20 crore or anything non-standard, get borrower-side representation.
What each one actually is
A DSA is an individual or firm empanelled with lenders to source loan applications. They are paid 0.5–2% by the lender on disbursement. Their incentive is to place your file where it disburses fastest, which is not always where it prices best. Marketplaces are DSAs at web scale, built for retail and small-business tickets.
A debt advisory is mandated by you. It sizes the ask, chooses the instrument (term loan, LAP, LRD, structured), approaches three to five matched lenders at once, negotiates the term sheets against each other, and manages diligence through to disbursement. It is paid a success fee by you — which is precisely why the advice points at your outcome rather than a lender's product shelf.
The honest comparison
| DSA / marketplace | Debt advisory | |
|---|---|---|
| Cost to you | Free — the lender pays commission | 0.5–2% success fee |
| Best ticket size | ₹10 lakh – ₹5 crore, standard products | ₹20–150 crore, or anything structured |
| Whose side | The lender's channel | Your mandate |
| Instrument choice | The products they're empanelled for | The full menu, including LRD, AIF and private credit |
| Negotiation | Rate card as offered | Term sheets competed and negotiated |
| Speed, small standard file | Very fast — this is their machine | Overkill |
| Speed, large or complex file | Slows or stalls | Parallel process, managed diligence |
| Declined file | Re-submits elsewhere | Diagnoses the reason, re-routes the pool |
| After disbursement | Relationship ends at commission | Covenants, refinance windows, next raise |
The economics, plainly
Both DSAs and advisories can be paid by lenders, and many advisories take lender-side fees as well. The useful filter isn't the label — it's transparency. Ask anyone touching your file: how are you paid, by whom, and how much? A straight answer means the incentives are at least visible to you. Evasion is also an answer.
When a DSA is the better choice
- Your requirement is a standard product — a ₹2 crore business loan, an equipment loan, a small LAP
- You already know the instrument and just need it placed quickly
- You're renewing or slightly enhancing an existing facility
- Speed on a simple file matters more than negotiating structure
When a debt advisory earns its fee
- The ticket is ₹20 crore or more, where 25 basis points over ten years dwarfs the fee
- Your bank has declined, or hit its exposure limit on your group
- The right instrument isn't obvious — project finance, LRD, mezzanine, bridge
- Timing matters: an acquisition, an auction, a one-time settlement
- You want the covenants, guarantees, and prepayment terms negotiated, not accepted
Common questions
What is the difference between a DSA and a debt advisory firm?
A DSA is empanelled with lenders to source loan files and is paid commission by the lender on disbursement. A debt advisory is mandated by the borrower: it sizes the requirement, selects the instrument, runs several lenders in parallel, negotiates term sheets, and manages diligence to disbursement. The DSA is a distribution channel; the advisory is representation.
My CA or a DSA can get my loan done free. Why pay a debt advisory?
The lender's commission is priced into your deal either way, so "free" is rarely free. At ₹30 crore the real question is whether one empanelled lender's offer beats a competed process on rate, covenants, guarantees, and prepayment terms. Sometimes it does. Get both, compare the actual term sheets, and let the market answer.
Is a marketplace like Paisabazaar good for a ₹50 crore loan?
Marketplaces excel at retail and small-business tickets, where products are standardised and comparable on a rate card. A ₹50 crore corporate or developer facility is relationship-underwritten and structured deal by deal, so it doesn't sit in a comparison widget. That band is bank, NBFC, and AIF territory — reached through direct relationships or an arranger.
How much does a debt advisory firm charge in India?
Typically 0.5% to 2% of the sanctioned amount, usually success-based and payable on disbursement. Complex structured mandates sometimes carry a small retainer. Anything demanded fully upfront, before any lender engagement has happened, deserves scepticism.
Not sure which you need?
Send us the basics on WhatsApp — ticket size, what it's for, what security you have. We'll tell you in one message whether this is a DSA job or worth an advisory mandate.
Talk to usPacewell Capital is a debt advisory and arranger, not a lender. All loans and facilities described here are provided by RBI-regulated banks, NBFCs, and funds, subject to their own credit approval, diligence, and documentation. Fee ranges and timelines stated on this page are indicative market observations as of July 2026.