Commission disputes are the primary reason DSAs switch institutions. A DSA who receives a commission payment that is lower than what they calculated, with no explanation of the computation, will assume the institution is under-paying — and over time, the erosion of trust will redirect their best leads elsewhere. The DSA / Channel Partner AI computes every commission from verified disbursement data, applies the correct rate for the product and disbursement amount, accounts for TDS, and sends the DSA a detailed payout statement that shows exactly how each rupee of commission was calculated — before the payment hits their account.
Why commission calculation is disputed — and the sources of every discrepancy
Commission discrepancies between what the DSA expects and what they receive originate from four sources. The first is the base amount: the commission is calculated on the disbursed amount, not the sanctioned amount — and the DSA may not know about any reduction between sanction and disbursement (a borrower who took a smaller loan at disbursement reduces the commission proportionally). The second is the rate tier: many commission structures are tiered — a higher rate applies above a certain monthly volume threshold, and the DSA may believe they crossed the threshold when they did not, or may not know that the institution's volume calculation excludes certain loan types. The third is hold conditions: some institutions hold a portion of the commission until the first 3 EMIs are paid — and the DSA may not have been clearly informed of this condition at onboarding. The fourth is TDS: a 5% TDS is deducted at source on commission payments above ₹15,000 — DSAs who did not submit Form 15G or whose PAN is not linked may have additional TDS applied.
The commission structure: product, tier, and volume
(HL)
1.00% of disbursed amount · Paid on disbursement · No hold condition
Home loan commissions are paid on the disbursed loan amount, not the sanctioned amount. Commission is payable within 7 working days of disbursement. No EMI hold condition for home loans since the collateral provides security. TDS at 5% for total monthly payout >₹15,000.
(HL) — volume
1.50% on all home loan disbursements when monthly total exceeds ₹50L
The higher rate applies to the entire month's HL disbursements (not just the incremental above ₹50L) when the DSA crosses the threshold. The upgrade is automatic — the DSA does not need to request it. Volume is calculated on all HLs disbursed in the calendar month regardless of sanction date.
loan
1.25% of disbursed amount · 50% on disbursement · 50% after 3rd EMI paid
MSME loans carry a hold condition: 50% of the commission is paid on disbursement, the remaining 50% is released when the borrower pays their 3rd EMI without default. This protects the institution against early-default cases where the DSA may have sourced a borrower who defaults immediately. The hold condition is disclosed at DSA onboarding (Module 3).
loan — volume
1.75% on all MSME disbursements when monthly total exceeds ₹30L
Same mechanics as the HL volume tier. The higher rate applies to the entire month's MSME disbursements once the ₹30L threshold is crossed. The hold condition (50% after 3rd EMI) still applies to the full rate.
Mortgage
0.75% of disbursed amount · Paid on disbursement · No hold condition
LAP commissions are flat rate with no volume tier. The lower rate reflects the larger average ticket size (LAP average disbursement: ₹65L vs HL: ₹38L). In absolute rupee terms, LAP commissions are comparable to HL commissions per case despite the lower percentage.
loan (PL)
2.00% of disbursed amount · 100% held until 3rd EMI paid · Highest rate, highest risk
Personal loan commissions carry a 100% hold condition — the full commission is only released after the 3rd EMI is paid, because unsecured personal loans have the highest early-default rate in the portfolio. The 2% rate reflects the higher yield on PL but is only realised if the loan performs in its early months.
Arjun Sharma's November commission statement
Ananya K. Home loan ₹42,00,000 1.50%* ₹63,000 − TDS ₹3,150 = ₹59,850 Paid
Ramesh Iyer Home loan ₹38,20,000 1.50%* ₹57,300 − TDS ₹2,865 = ₹54,435 Paid
Priya N. Home loan ₹40,00,000 1.50%* ₹60,000 − TDS ₹3,000 = ₹57,000 Paid
Mehta MSME MSME term ₹18,40,000 1.25% ₹23,000 × 50% = ₹11,500 (50% held) ₹11,500 paid
Ravi SE Loans MSME term ₹10,00,000 1.25% ₹12,500 × 50% = ₹6,250 (50% held) ₹6,250 held
Kaveri LAP LAP ₹36,00,000 0.75% ₹27,000 − TDS ₹1,350 = ₹25,650 Paid
A DSA who can verify their commission to the rupee is a DSA who trusts the institution
The DSA / Channel Partner AI's commission statement is not just an accounting record — it is a trust document. When Arjun opens his December 7 statement and sees that his three home loans crossed the ₹50L threshold and upgraded his entire month's HL commission to 1.50% — a fact he may not have tracked himself — his first reaction is not suspicion but appreciation. When he sees the MSME hold amounts explained with the specific release condition, he understands the mechanic rather than resenting the deduction. An institution that explains its commission computation completely, accurately, and proactively builds a DSA network that stays — because the DSAs feel they are treated as partners, not as managed vendors.