: What Does a
Loan Officer Do?
Known by several different titles in
various financial institutions, a loan
officer functions as the liaison or
intermediary between an institution that
provides personal and business loans to
consumers and the applicants for a loan.
A basic responsibility of loan officers is to
seek to find a loan arrangement that is in
the best interests of both the applicant
and the bank or financial institution that
has extended the loan.
Sometimes referred to as a lending officer
or a loan counselor, the loan officer
possesses a comprehensive knowledge of
the types of loans that are provided by a
financial institution. Along with
understanding the general terms related
to each loan type, the loan officer will
also have a complete working knowledge
of the requirements or conditions that are
necessary for applicants to successfully
qualify for each type of loan. In addition,
a competent loan officer will have the
latest information on any upcoming
promotional specials on loans, including
any special interest rates that are
extended for only a short period of time.
The loan officer will also be an expert in
evaluating the financial condition of loan
applicants. This can be especially
important when the applicants may be in
the process of overcoming adverse
financial conditions, or just beginning to
establish a credit history. A competent
loan officer will be aware of loan
opportunities that may be of interest to
persons who are seeking a loan, but have
a range of extenuating circumstances that
are necessary to address. Typically, the
loan officer will be aware of loans that
will fit just about every economic
situation, assuming that it is possible to
determine that there is both an ability
and a willingness to repay the loan
according to terms.
Persons who are trained as loan officers
may work in a variety of different types of
lending institutions. Banks usually employ
several loan officers in each local branch,
often with various officers focusing on
particular types of loans, such as personal
or small business loans. Loan officers or
associates are also common in
commercial lending institutions that cater
to national and international business
expansion funding, credit banking
companies that specialize in
consolidation loans, and organizations
that specialize in underwriting
educational loans.