Loan Officer job description
A Loan Officer is a professional who processes loan applications and evaluates them for eligibility and suitability to ensure that nothing stands between business or personal goals.
This Loan Officer job description template is optimized for posting on online job boards or careers pages and is easy to customize for your company.
Loan Officer responsibilities include:
- Evaluating credit worthiness by processing loan applications and documentation within specified limits
- Interviewing applicants to determine financial eligibility and feasibility of granting loans
- Determining all applicable ratios and metrics and set up debt payment plans
Job brief
We are looking for a Loan Officer to evaluate, authorize approval or deny loan applications for people or for business. You will act as liaison between customers and our financial institution and you will help qualified applicants acquire loans in a timely manner.
Responsibilities
- Evaluate credit worthiness by processing loan applications and documentation within specified limits
- Interview applicants to determine financial eligibility and feasibility of granting loans
- Determine all applicable ratios and metrics and set up debt payment plans
- Communicate with clients either to request or to provide information
- Justify decisions (approvals/rejections) and report on them
- Complete loan contracts and counsel clients on policies and restrictions
- Update job knowledge on types of loans and other financial services
- Maintain and update account records
- Assess customer needs, explore all options and introduce different types of loans
- Develop referral networks, suggest alternate channels and cross-sell products and services to accomplish quotas
- Go the “extra mile” to build trust relationships, customer loyalty and satisfaction throughout the underwriting process
- Οperate in compliance with laws and regulations and adhere to lending compliance guidelines
Requirements and skills
- Proven working experience as a Loan Officer
- Familiarity with computers and banking applications/software
- Solid understanding of direct/indirect lending products and practices
- Excellent communication and interpersonal skills
- Customer satisfaction orientation and sales competencies
- Ability to work in a goal oriented environment
- BS degree in finance, economics or a related field
Frequently asked questions
- What does a Loan Officer do?
- A Loan Officer works for banks, credit unions, independent lenders and mortgage companies to help applicants apply for loans. They ensure the eligibility to proceed with loans and evaluate how creditworthy or not a person might be based on their history and current finances before recommending them for approval.
- What are the duties and responsibilities of a Loan Officer?
- A Loan Officer’s responsibilities include reviewing, authorizing and recommending loans for approval. They meet with applicants to determine their creditworthiness before deciding whether or not they will offer them a personal or commercial loan. They go through each application individually, looking at what type/amounts an individual or business can afford based on specific principles. Another critical duty of a Loan Officer is to stay current with lending regulations, the economy and market rates.
- What makes a good Loan Officer?
- A good Loan Officer is transparent with customers, has a no-pressure attitude, and has excellent communication skills. Loan Officers have access to private, personal and confidential information; thus, it’s vital to practice actively listening, empathy and impartiality.
- Who does a Loan Officer work with?
- Who Loan Officers work with depends on the institution they are employed by. For example, in a bank setting, Loan Officers work alongside Bank Tellers, Auditors, Branch Managers and Data Processing Officers.