Loan Officer Career Description
A loan officer is the main decision maker about loan decisions of a bank. Bank clerks can take loan proposals from the clients and approach the loan officer to approve or disapprove these loan proposals according to the credit history of the client. Every loan officer has a certain credit limit that he or she can approve. Any loans demanded more than the credit limit should be taken to the next higher level of bank management. The parameters that should be considered by the loan officer to approve loan documents from the client are kind of collaterals, financial statements of the client, integrity of the borrower, third party guarantees, etc. Depending on the credit history of the borrower, the pricing or interest rate of the loan amount should be decided by the loan officer.
Loan Officer Job Career Description
- A loan officer conducts credit appraisal procedure for the loan documents that are passed on by the bank clerks.
- Due diligence is performed by the bank officials to ensure that the credit history of the client is good.
- The loan interest on the amount is decided by the bank loan officer depending on the cost of funds for the bank, servicing charges, risk taken by the bank, and expected profit.
- After giving credit to the borrowers, continuous monitoring is required by the bank. This is also done by the loan officer.
- The decisions taken by the loan officer contributes to the profitability of the bank and the bank’s investment decisions.
Loan Officer Career Salary
Candidates who want to become loan officers can find opportunities in many fields including banking, mortgage lending, loans, credit products, financial services, credit union, etc. Most of the loan officers possess 1-4 years of experience while some possess even higher experience levels. The salary range also depends on the knowledge and expertise. According to Pay Scale, the annual salary of a loan officer is between $26,000 and $98,000.