Question 1

Do all banks pay broker referrals?

Accepted Answer

Most lending banks have a channel partner program for brokers who refer qualified leads. Rates vary (0.1-0.5% of loan amount typically). You need a signed channel partner agreement, which is a one-page form at each bank's DST department.

Question 2

Is referral commission taxable?

Accepted Answer

Yes, it's commission income. GST applies (18% on commission, SAC 997162), and the bank will deduct TDS at 10% under Section 194J (not the 2% under 194H, because this is professional/consultancy commission from a bank).

Question 3

What if the buyer applies to the bank without my referral?

Accepted Answer

If you can prove you introduced them (email, WhatsApp screenshot, or Realzent-logged referral record), most banks honour the commission. BankConnect's referral timestamp is accepted by major banks as proof.

Question 4

Can one deal generate multiple bank referrals?

Accepted Answer

Yes, buyer often compares 2-3 banks before deciding. Log each one. Only the disbursing bank pays, but your BankConnect record shows the trail.