Loan Officer Job Duties

As a specialized position in banks, insurance firms, payday lending centers and mortgage lending institutions, the loan officer or loan disbursement officer is basically responsible for handling loan application and releasing approved loan checks to clients.  He may not be the one to processes loan repayments which is often performed as a tellering function.  Whether online or over the counter, the loan officer ensures that all requirements are met so as to lessen the bank’s risks before acting on loan applications.

Job Duties

  • Process and approve loan applications within certain limits, above which the application is referred to a higher approving authority.
  • Advice loan applicants of all documentary requirements in the loan application.
  • Check and ensure that all loan application submission are in order and proceeds to process the loan as per bank’s loan policies.
  • Receive inquiries via the counter, phone, emails or registered mail about the company’s loan products.
  • Explain to prospective borrowers the loan application requirements as well as the various loan products, interest charges, processing fees, penalty charges and payment term options available.
  • Analyze applicant’s financial situation, stability of income sources, credit standing and outstanding credit debts, payment records with previous loans if any and property ownership and other acceptance criteria before approving the loan.
  • Participate in management meeting to gauge market perception on the company’s responsiveness to market loan demands prior to designing its loan products.
  • Work with clients in settling loan delinquencies and accept negotiated settlement or send delinquent accounts to collection agencies.
  • Coordinate with bank lawyers to initiate court proceedings for garnishment of property collateralized in the delinquent loans.