Credits and loans are a primary source of funds for any banking institution. The money deposited by people into the bank is then loaned to borrowers and investors to fund a business project or other forms of ventures. A bank earns by setting an interest rate on these credits and loans, and collecting them on a monthly, bi-monthly, semi-annual or annual basis.
Lending officers, also called credit/loans officers, are responsible for the approval or denial of loan applications. They study the applications and consider if these are viable or too risky for the bank to undertake. A lending officer's job include:
- Providing assistance for loan applicants
- Researching a loan applicant's background and credit history
- Examining the feasibility of the loan to the bank and to the customer
- Explaining the terms and conditions of the loan
- Selling other bank services
Communication and Analytical SkillsGood conversational skills are a necessity for lending officers, since there may be loan applicants who vaguely understand the terms and conditions of the loan. A lending officer must also be able to handle tense situations, because they may be required to explain to a loan applicant why their application was denied. Loan officers may be tasked to sell other bank services on occasion, so they must also be well-informed about bank procedures aside from loans.
A loan officer must have highly developed analytical skills. Loan officers represent the bank as a whole. Approving and denying loan applications is a great responsibility, and making the right decisions can impact the financial market.
Job Qualifications
Applicants for lending officer jobs should have at least a bachelor's degree of any business related course, or 5 years of applicable experience. Lending officers usually earn five-figure salaries annually. Loan officer jobs are based on reputation. The more you earn the bank and customer's trust, the more your salary will increase.
