Loan Officer Job Description: Top Duties and Requirements

A Loan Officer, or Credit Officer, is an individual who analyzes financial portfolios to find a loan that is appropriate for the clients’ needs and means. Their main duties include completing credit checks, submitting loan applications on behalf of their clients, and advising loan applicants on their financial future.

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Loan Officer duties and responsibilities

A Loan Officer may work as an independent consultant or for a bank, credit union, or trust company. Some of the common duties and responsibilities expected of a Loan Officer in any industry include:

  • Assess the client’s financial status
  • Complete a full credit check verification
  • Advise clients on investments
  • Review and update credit and loan files
  • Encourage clients to open loan accounts, credit cards, or other lines of credit
  • Follow up on delinquent accounts
  • Update credit files regularly and forward to collection’s agencies, as necessary
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Loan Officer Job Description Examples:

 

Example 1

"Great opportunity in Nanaimo! You will be helping our customers secure financing for their vehicle purchases through one of the many financial institutions that we partner with. You will also be responsible for making sure our customers have a great experience purchasing their vehicle and understanding the many beneficial products and services that we offer at the time of purchase. This opportunity is perfect for someone who has worked in finance, lending, or the insurance industry. *Automotive experience is not required*. Job Types: Full-time, Permanent Salary: per year Additional pay: * Bonus pay Benefits: * Dental care * Disability insurance * Extended health care * Life insurance * Store discount * Vision care Schedule: * 8 hour shift Work remotely: * No"

Example 2

"*Location: Cambridge, ON (Headquarters)* *About Us* *_*Highest Rated Consumer Financial Services Company*_* *With over 20,000 FIVE-star customer reviews*, Cash 4 You is one of Canada's largest digital and retail consumer finance organizations providing solutions for better credit options for hardworking Canadians. We've funded over over 1 Billion dollars of unsecured personal loans, and other credit-related products, in-branch and on-line. *Job Scope: * As a Loans Officer, you'll be responsible for assessing loan applications and making recommendations for responsible lending decisions on both new and existing customers. * Assess loan applications for data integrity and potential fraud * Conduct loan interviews with loan applicants over the phone * Gather documents for loan agreements, if anything is outstanding * Quality check all information prior to creating loan agreement * Assess bank statements, credit reports, and debt-to-income ratios * Handle all conditionally approved files * Communicate financing decisions to loan applicants and stores * Analyze clients’ payment history and banking transactions * Underwrite refinancing opportunities for existing loan customers * Assess loan files for interest rate reductions *Skills & Experience* * Credit Analysis * 3+ years of experience in the Financial Services industry and loan underwriting * Advanced literacy and numeracy and communication skills * Excellent analytical, critical thinking and customer service skills * Background in collections or call centers (desirable) * Strong attention to detail * Well-developed organizational and time management skills * Aptitude for multitasking * Ability to interpret, adapt to and apply guidelines and procedures * Proficiency in MS Office and typing speed above 40 wpm * High school education or equivalent Job Type: Permanent Schedule: * Monday to Friday * Weekends Work remotely: * No"

Example 3

"*Location: Cambridge, ON (Headquarters)* *About Us* *_*Highest Rated Consumer Financial Services Company*_* *With over 20,000 FIVE-star customer reviews*, Cash 4 You is one of Canada's largest digital and retail consumer finance organizations providing solutions for better credit options for hardworking Canadians. We've funded over over 1 Billion dollars of unsecured personal loans, and other credit-related products, in-branch and on-line. *Job Scope: * As a Loans Officer, you'll be responsible for assessing loan applications and making recommendations for responsible lending decisions on both new and existing customers. * Assess loan applications for data integrity and potential fraud * Conduct loan interviews with loan applicants over the phone * Gather documents for loan agreements, if anything is outstanding * Quality check all information prior to creating loan agreement * Assess bank statements, credit reports, and debt-to-income ratios * Handle all conditionally approved files * Communicate financing decisions to loan applicants and stores * Analyze clients’ payment history and banking transactions * Underwrite refinancing opportunities for existing loan customers * Assess loan files for interest rate reductions *Skills & Experience* * Credit Analysis * 3+ years of experience in the Financial Services industry and loan underwriting * Advanced literacy and numeracy and communication skills * Excellent analytical, critical thinking and customer service skills * Background in collections or call centers (desirable) * Strong attention to detail * Well-developed organizational and time management skills * Aptitude for multitasking * Ability to interpret, adapt to and apply guidelines and procedures * Proficiency in MS Office and typing speed above 40 wpm * High school education or equivalent Job Type: Permanent"

What does a Loan Officer do?

A Loan Officer assesses their client’s finances to help them choose the correct loan products for their situation. They also offer financial advice to help clients manage their debts and loans. They may also advise clients on investment strategies and help them develop a plan to attain their individual financial goals. They are responsible for guiding individuals in making decisions about their financials, filing applications for them, and providing them with solutions to their debt problems.

Loan Officer skills and qualifications

There are several skills and qualifications that make for a good Loan Officer in any industry. Some of the most important skills to look out for include:

  • Exceptional analytical skills
  • In-depth knowledge of financial products 
  • Excellent communication skills, both verbal and written
  • Strong interviewing skills
  • Excellent organizational skills
  • Strong report writing skills
  • Strong eye for detail
  • Understanding of wealth and debt management

Loan Officer experience requirements

Loan Officer candidates should be able to demonstrate experience in the finance sector, particularly in banking and loans. Ideal candidates will have three to five years experience in a related position such as a Loan Processor or other related role. Ideal candidates will also be able to demonstrate a practical understanding of the relevant regulations and laws in your province or territory. 

Loan Officer education and training requirements

A successful Loan Officer candidate should have a bachelor’s degree in finance, economics, or a related discipline. In addition, they often have a certificate of completion of a loan or credit training program. In some provinces, Loan Officers may also require a licence from the appropriate governing agency, such as the Manitoba Securities Commission. Candidates with a certificate of completion of one of the various finance programs available from the Institute of Canadian Bankers may be favourable.

Loan Officer salary expectations

According to Indeed Salaries, the average Loan Office in Canada earns a rate of $16.01 per hour. Pay may vary depending on the geographical location of the position, the type of industry the company is in, and the candidate’s level of education, experience, or training certificates.

Job description samples for similar positions

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Loan Officer job description FAQs

What is the difference between a Loan Officer and a Financial Advisor?

While some functions are performed by both of these employees, there are distinctions within each role. A Loan Officer offers some financial advice, but focuses on selling loan products and assessing a client’s financial portfolio to determine which loans are suitable for them. A Financial Advisor focuses more on developing retirement and wealth management planning.

What should you look for in a Loan Officer resume?

In addition to the educational requirements, look for candidates with as much experience in a bank as possible. The strongest candidates who perform best in the role often have in-depth knowledge of the institution’s financial products and processes. Look for candidates with experience interviewing clients and compiling client information for reporting purposes.

Are there different types of Loan Officers?

A Loan Officer can help clients choose any type of loan but, depending on the individual work environment, there may be a need for specific Loan Officers for different types of loans. For example, a Mortgage Loan Officer works with individuals buying a home, and Business Loan Officers work with corporations looking to acquire new assets or expand their business.

How can you make a Loan Officer job description stand out?

To make your Loan Officer job description stand out, detail the types of loans the candidate will be expected to issue in their position. If you require candidates to have specialist knowledge of certain laws or financial regulations when issuing loans, be sure to include this information in your job description. Additionally, include information about the salary and any competitive benefits you offer to attract great candidates. 

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