A loan officer, who goes a variety of names in different financial institutions, acts as a liaison or intermediary between a financial institution that provides personal and business loans to consumers and the loan applicants. Loan officers have a basic responsibility to find a loan arrangement that benefits both the applicant and the bank or financial institution that has extended the loan.
The loan officer, also known as a lending officer or a loan counselor, has a thorough understanding of the various types of loans offered a financial institution. Along with knowing the general terms associated with each loan type, the loan officer will have a thorough understanding of the requirements or conditions that applicants must meet in order to qualify for each type of loan. A competent loan officer will also have the most up-to-date information on any upcoming loan promotional specials, such as any special interest rates that are only available for a limited time.
The loan officer will also be an expert in assessing loan applicants’ financial situations. This is especially important when the applicants are trying to recover from a financial setback or are just starting to build a credit history. A knowledgeable loan officer will be aware of loan opportunities that may be of interest to people who are looking for a loan but are dealing with a variety of extenuating circumstances. Typically, the loan officer will be familiar with loans that will fit almost any financial situation, assuming that it is possible to determine that the borrower has the ability and willingness to repay the loan according to the terms.
Loan officers can work for a variety of different types of lending institutions. Typically, each local branch of a bank employs several loan officers, with different officers focusing on different types of loans, such as personal or small business loans. 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 all employ loan officers or associates.
With the advent of the Internet, loan officers can now accept and evaluate online loan applications, giving applicants the opportunity to interact with loan officers from a variety of loan institutions rather than relying solely on local banks and lending companies.