A Loan Officer is responsible for evaluating, authorizing or recommending approval of various loan applications for businesses and individuals. Loan officers actually use underwriting for assessing whether applicants are qualified for the loans. After the collection and verification of all the necessary financial documents, they are responsible for evaluating that information for determining the applicant’s loan requirements and his capacity to pay back.


There are consumer loan officers specializing in giving loans to individuals. Commercial loan officers focus primarily on approving business loans. Businesses often require loans for buying supplies and upgrading or even expanding operations. Mortgage loan officers are specialists in loans for buying real estate, called mortgage loans.

Some companies believe in underwriting loans manually, they calculate the applicant’s financial position by using specific guidelines or formula. Other companies prefer using underwriting software that is effective in analyzing applications instantaneously. Quite frequently firms employ underwriting software for producing a recommendation, but at the same time rely on loan officers to evaluate any additional information to come to a final decision.

The job requires excellent interpersonal skills. This is because the job has a considerable customer care service as well as sales components. Loan officers are responsible for responding to customer queries and guiding them throughout the application process. Additionally, loan officers require soliciting new business actively. Moreover, they may have to market the lending institution’s products and services.

Duties in a Nutshell

Loan officers are responsible for discharging many important duties. They are typically responsible for the following responsibilities.

  • Contacting individuals and companies to find out if loan is required
  • Meeting with countless loan applicants for accumulating personal information and for responding to their queries if any.
  • Explaining a plethora of loans to the potential customers and discussing with them the terms for the relevant loan.
  • Obtaining and verifying financial information including the applicant’s income level and credit rating
  • Analyzing and evaluating the applicant’s finances for deciding if he is qualified for getting the loan.
  • Approving loan applications or referring them to the concerned people in the management for a perfect decision.

Educational Prerequisites

Loan Officers would be required to possess a bachelor’s degree in Business /Finance. They should have adequate business accounting knowledge. This is because commercial loan officers often need to assess and analyze the financial well-being of various businesses applying for some credit. They should possess exceptional grasp over general business accounting.


Loan officers generally are given some on-the-job training. This could be a unique combination of informal training, formal training and company sponsored training during the initial few months after joining a job. Those companies using underwriting software often offer classes for learning the firm’s software programs.

Certifications, Licenses, and Registrations

Mortgage loan officers are supposed to possess a Mortgage Loan Originator License. For becoming licensed, mortgage loan officers are required to complete a minimum of 20 hours of related coursework, even pass an exam and also, submit credit as well as background checks. All licenses should be renewed once every year and there could be some more requirements depending on individual states.

Numerous schools and banking associations provide certificates or courses for loan officers. The Mortgage Bankers Association and the American Bankers Association usually offer training programs and certifications for loan officers. Certifications help to demonstrate the expertise and dedication and would help in enhancing a candidate’s job opportunities.

Some More Prerequisites

Loan officers should possess exceptional decision-making skills. They must possess drive & initiative while seeking out potential clients. They often need to do what salespeople do, for promoting the firm, they represent and getting in touch with companies for determining their loan requirements. They must possess strong interpersonal skills as they need to interact with people. They should be good at communication and should guide clients effectively during the entire application process. They should be well-equipped to answer all queries.

Author Bio: Mark Taylor is a career counselor currently attached to a Human Resources Consultancy Firm. He is an avid blogger and enjoys browsing through reputed sites. He recommends www.leasequit.com for all your leasing solutions.