Among all banking professions, the position of a credit specialist has a special place, since a bank is, first of all, a financial and credit institution. The bank's viability depends on the skillful work of these employees, i.e. the ability to increase your loan portfolio, while simultaneously improving its quality and thereby reducing the percentage of overdue debt.
In modern practice credit specialist may also be called or credit expert. Even from the very name of the profession we can conclude that a credit specialist is a bank employee who must:
Know and promote the bank's policy in the field of providing borrowed funds;
- skillfully navigate loan products, offering potential borrowers the most suitable one;
- possess logical thinking and the ability to assess the client’s reliability;
- make decisions and be responsible for them.
In other words, a credit specialist must be an expert in all matters related to lending (from the stage of accepting an application to the end of the contract).
Responsibilities of a loan officer
- Informing a potential borrower about existing options for obtaining a loan and choosing the best one (if the bank does not have a consultant position, but even if it exists, such skills are required);- calculation of the loan amount and the amount of monthly payments to repay the debt;
- accepting applications for a loan;
- checking the availability of necessary documents;
- non-repayment of the loan and assignment of the appropriate class or rating to the borrower;
- transfer of a package of documents to the security service and economic service of the bank;
- submitting an application for consideration by the credit committee;
- preparation of documentation (loan agreements, guarantees, pledges; payment schedules; various applications (for example, to withhold the amount of debt repayment from wages or write-offs from a plastic card);
- signing the contract;
- contract support, i.e. the need to control the timeliness of debt payment (in large banks a special department is created for these purposes).
The loan specialist must also have a certain intuition and psychological skills in order to sometimes determine during a conversation whether the intentions of a potential borrower are pure. In this regard, employees of credit departments are periodically sent to special psychological courses.
Loan specialist - personal qualities
Due to constant communication with clients, a credit specialist must have a number of personal qualities: communication skills, tact, responsibility, commitment to banking principles, desire to work with people, emotional stability.The task of a loan specialist is not just to issue a loan, but to formalize a transaction with a reliable borrower, thereby ensuring the bank both a return of funds and a certain level of income. For the greatest competence and quick satisfaction of the needs of borrowers, loan specialists are often divided by type of lending. Some, for example, deal exclusively with mortgage programs or even subprograms, such as, others deal with consumer loans, etc. This allows employees to learn all the intricacies and nuances of a loan product and skillfully apply this knowledge in practice.
The profession of a credit specialist is widely in demand today. It is not without reason that banks place high demands on the level and quality of work of these employees. For the borrower, they are the face of the lending institution. For the organization itself, it is one of the main links of the entire mechanism. This link should under no circumstances be weak, otherwise the stable operation of the bank as a whole may be at risk.
Along with other banking professions, the position of specialist is a separate link, since the bank is primarily a financial and credit enterprise. The skillful work of these people ensures the bank's viability, increasing its loan portfolio, while at the same time improving the quality of service and reducing the level of debt.
Modern practice allows loan officers to also be called loan officers and examiners. Based on the name of the profession itself, you can obtain certain data. A loan officer is a bank employee
Knowledgeable and skillfully promoting the bank's policy in the field of providing funds as a loan;
Fluently navigates loan offers, looking for the most suitable products for borrowers;
Possessing a logical mind and ability to assess the solvency of a potential client;
Makes firm decisions and bears full responsibility for them.
In other words, a loan specialist must have a masterful understanding of all lending issues, from receiving an application to repaying the loan.
The credit specialist is obliged to:
Inform potential clients about current options for obtaining a loan and choose the most profitable one (these skills must be required, even if the bank has an active consultant);
Calculate loan amounts and monthly payments towards debt repayment;
Accept loan applications;
Monitor the client’s availability of all necessary documents;
Assess the risks of non-repayment of loans and assign the appropriate class/rating to the client;
Provide documents to the Security Service and the banking economic service;
Submit an application for consideration by the credit committee;
Draw up documentation (various contracts), payment schedules, applications for various purposes (for example, to write off an amount from wages or a plastic card to pay off a debt);
Sign contracts;
Support the contract and monitor timely debt payments. In particularly large companies, this is entrusted to a special department.
In addition, the credit expert in his work must be guided by some intuition and the skills of a social psychologist in order to determine the purity of the borrower’s intentions during just one preliminary conversation. To obtain the appropriate skills, employees of credit departments periodically undergo special psychological courses.
This is interesting: read our other articles -, and.
Personal qualities of a loan specialist
Due to the nature of his job, a loan officer is forced to constantly communicate with clients. This obliges him to possess a number of important personal qualities such as communication skills, desire to work with people, stress resistance, tact, responsibility and commitment to the principles of the bank.
The task of each loan specialist is not just to apply for a loan, but to enter into a strong relationship with a reliable client, satisfying his needs, while simultaneously providing the bank with a return of funds and generating income. In order to more competently understand their environment and quickly provide assistance to borrowers, specialists are often divided by type of lending. Thus, some specialize in mortgage programs and similar products, others in consumer loans, etc. A narrow profile allows a specialist to delve deeper into the intricacies of the selected product and apply knowledge in practice.
Currently, the services of credit specialists are in great demand and it is no accident that banks place high demands on the quality of work and diligence of their employees. For the borrower, the specialist is a kind of face of the entire bank. For the bank itself, it is one of the main connecting links of the entire mechanism. And the main thing is that this link is strong. Otherwise, the stability of the bank will be disrupted, which will not lead to anything good.
We also want to draw your attention to completely new professions in the banking sector - and.
Job advertisements are now simply full of vacancies for “loan specialist”. What will the job consist of, and what knowledge and skills should the applicant have? The answer to this question is of interest not only to job seekers.
Loan specialist job
As soon as these workers are not called: credit consultants, inspectors, managers, experts. But the essence is still the same - an employee of a financial and credit institution promoting the bank’s line of credit products to the masses.
Since any bank earns its main income through lending, specialists at this level are always in demand. So to speak, these are the main breadwinners of the bank. After all, it is they who ensure the receipt of that very profit, which subsequently goes to pay the wages of all staff.
But any loan should not just be given to the first person who wants it. It is important to do this as efficiently as possible so that in the future this potential income does not “fall out” into overdue debts and does not disrupt the stable operation of the bank. That is why high demands are placed on credit specialists in any serious bank.
The exception is MFOs, where such employees can be hired without work experience and more or less decent education. Such organizations hire consultants who represent their credit institution in stores, shopping centers, etc., and teach them the basics of the profession independently.
Responsibilities of a loan officer
Initially, a bank loan officer is assigned the role of a consultant. He must be able to inform the potential borrower as thoroughly as possible about the loan programs available at the bank and advise on the option that will satisfy all the client’s requirements. In large banking institutions, all credit specialists are divided into groups, and each deals with a separate area. One, for example, works exclusively with car loans, the second with consumer loans, the third with mortgages, etc. This gradation allows managers to study all the intricacies of “their” area and become as competent as possible in it.
During the consultation process, the expert must:
- calculate the loan amount that the client can receive (the calculation is made based on the latter’s solvency);
- calculate the amount of monthly payments based on the proposed loan terms;
- draw up a preliminary repayment schedule and familiarize the potential borrower with it;
- calculate the amount of the insurance premium if the client participates in the insurance program.
When all the main points have been announced, and the potential borrower decides on the issue of lending in a positive way, the loan officer fills out an application and accepts a package of documents. At this stage, the specialist’s responsibilities include:
- acceptance of the application itself, and, if necessary, assistance in filling it out;
- checking the passport photo with the applicant’s identity;
- checking all submitted documents for correctness.
In addition, the credit manager evaluates the appearance and accessories of the client and his accompanying persons (if any). This approach in most cases reduces the bank’s risks regarding loan repayment. The financial structure does not need unnecessary problems, so they assign rating marks to clients based on visual assessment. Well, you must agree that it is dangerous to give a loan if the borrower has a certain friend “over his soul” and tells him how to write and how much to take.
After accepting the application, the loan specialist submits all documentation for review to the bank’s security service, and in exceptional cases (for a mortgage, for example) to lawyers. At the same time, he is preparing his opinion on the planned transaction. If the decision of all services is positive, the manager submits the project for consideration (or to the credit commission) of the bank.
- preparation of all necessary documentation to complete the transaction;
- ensuring the process of signing a loan agreement;
- support of the transaction until the repayment of all loan obligations of the borrower to the bank.
Support here means control over the timely payment of the loan and related payments (commissions, fees, insurance premiums, etc.). When the first case of late payment occurs, the credit specialist is obliged to inform the borrower about the existence of a delay and take the necessary measures to repay it as quickly as possible.
Qualities and skills of experts
Any serious institution wants to see a specialist with experience in the field of finance, but in some cases it is possible to fill a vacancy without experience, but with a higher education in the financial field. In addition, applicants are subject to the following set of requirements:
- literacy;
- tact;
- the ability to think logically and evaluate a potential client;
- fast learner;
- emotional stability in unusual situations;
- communication skills;
- neat appearance.
A candidate for the position of a credit specialist should also be a bit of a psychologist. After all, almost any client needs to be able to persuade them to take out a loan, and in case of delay, convince them to repay it and no longer miss scheduled payments.
Already working in a bank in the desired position, you need to thoroughly study the bank’s lending policy and have a good understanding of the loan products promoted by this financial institution. Otherwise, you may not complete the probationary period and say goodbye to your position.
Cons of the profession
One of the disadvantages is the bonus system of remuneration, which is now practiced in the banking sector. Credit inspectors are paid a small salary, and the bulk of their earnings are incentives for good performance. So you have to work hard to earn a decent amount.
Specialists working in large banks consider the main disadvantage of their position to be the responsibility for supporting credit projects. It's good when everything goes smoothly. What if customers suddenly stop paying? In addition to the main responsibilities of attracting and lending, one has to spend titanic efforts to repay overdue debts. These are constant calls, negotiations, persuasion...
But you will waste the very time that could be spent usefully for your wallet, attracting new clients. Moreover, in most cases, delays have a negative impact on operating results and affect the amount of the accrued bonus.
The loan officer does not always work with the incoming flow of citizens. In most cases, he can sit on the phone all day or go through presentations in order to attract at least one client for lending. Those who dream of working in an office are unlikely to like this. And if you get a job as a manager in an MFO, then you can work not within the walls of a credit institution, but at a remote location. Large shopping centers are simply crammed with such specialists from different structures. Can you imagine what kind of competition this is? It is almost impossible to earn bonuses here, so you will have to be content with a meager salary, which will be the only component of your earnings.
But the main disadvantage is sales plans. The amount of bonuses and bonuses depends on their implementation. Moreover, the plan can be set not only by the number of loans issued, but also by the amount of funds issued and the percentage of borrowers attracted to insurance programs. It’s good if you work in a big city and have a constant flow of clients. In small towns, there always comes that very moment when most of the population finds themselves in debt and there is simply no one to offer their products.
This is what it is, the profession of a credit specialist. Let's be honest, it's not sugar. But with some effort, you can make good money from all kinds of bonuses and incentive payments. But it’s not always possible to achieve decent results. And for successful work and good earnings, we have to drive our already not rich population into even greater debts and push them to. What to do, you have to accept it as it is.
The banking system in our country is rapidly growing and gaining momentum, so any specialties related to working in a financial institution are considered prestigious and in demand. After all, its profit and the level of customer confidence depend on the coordinated work of all bank employees. One of the important employees is credit specialists or experts, who are entrusted with the main task of a banking organization - issuing loans. However, let’s take a closer look at what a lending specialist should know, what qualities he should have, his job responsibilities and much more.
Job responsibilities of a credit department employee
The main responsibilities of a loan specialist are advising clients and selecting the best lending options for the borrower. That is, in fact, he performs several functions at once: he must attract the client, advise him on the lending services available to the bank, and choose the most suitable option that will best satisfy the client’s needs.
If the client is interested in the services of the bank, then the loan officer must calculate the maximum loan amount for him depending on his financial capabilities, calculate the loan term, the amount of the monthly payment and the annual interest rate.
Next, the loan specialist’s task is to fill out an application form and analyze the data, assess the borrower’s creditworthiness and the bank’s risks when collaborating with him. Yes, indeed, today the task of assessing solvency is performed by a scoring system, but a lot also depends on the credit specialist. After all, among other things, he must collect the borrower’s documents, visually assess their authenticity, then transfer them to the bank’s security service, credit committee and other departments of the financial institution that are responsible for issuing borrowed funds, while he must be attentive to the individual every client.
Working as a credit specialist requires the employee to have certain knowledge in order to perform the following functions:
- know the bank’s policies and principles for providing cash loans to private and corporate clients;
- have a good knowledge of the bank’s lending conditions in order to provide potential clients with the maximum amount of information and select the optimal terms of cooperation for each of them;
- be able to visually assess the authenticity of documents and the reliability of the interlocutor, in particular, his financial situation;
- how to make decisions correctly and bear financial responsibility for it.
Please note that one of the key tasks of a lending department employee is the ability to assess the client’s solvency, that is, in simple words, he must have some knowledge in the field of psychology in order to identify the borrower’s intentions to repay the borrowed funds during a conversation.
Personal qualities of a bank employee
Despite the fact that the bank takes a responsible approach to lending and primarily evaluates the professional skills of its employees, the personal qualities of employees play a big role. For a credit specialist, the main and personal qualities are communication skills, resistance to stress, responsibility and the ability to perform professional duties in strict accordance with the internal regulations of the bank.
In simple terms, a credit specialist must first of all be a reliable partner of a financial institution, and in any situation protect the interests of the bank. That is, he must not only bring a client and conclude a loan agreement with him, but at the same time do the same with reliable clients who will bring profit to the bank and repay the issued loan. By the way, it is worth saying that many banks pay their employees for special courses in psychology; this is primarily necessary so that the bank specialist can recognize at the stage of conversation with the client whether he will treat the circumstances responsibly or not.
Professional skills of a bank employee
You should not think that a loan officer should look for clients and bring them to the bank. No, this task is not his responsibility, but he must be able to properly advise the client and interest him in the bank’s services so that he draws up a loan agreement. Accordingly, the loan specialist must have a good knowledge of all the bank’s products and services; for this, of course, he must have at least a higher education.
Also, the loan specialist must be able to work with documentation, because he will be required to advise his clients on collecting the documents necessary for obtaining a loan. He must be able to visually assess their authenticity and in the future submit them for review to the bank's security service. By the way, the application for the issuance of credit funds is also filled out by a credit specialist, so he must know all the features of filling out these documents.
And finally, the final stage of the transaction is the signing of a loan agreement and the issuance of borrowed funds. Yes, by the way, the money is issued directly by the cashier, and this is not the responsibility of the loan specialist, but, nevertheless, he gives the loan agreement for signature and must, if necessary, answer all the borrower’s questions if they arise while reading the documents .
Important! All bank credit specialists undergo specialized training and education, because work in different financial institutions varies greatly, so management must provide its new employees with complete detailed and reliable information about working with bank documents.
How to get a job as a loan officer
In fact, finding a job as a loan officer is possible and it won’t be that difficult. After all, all bank employees have excellent career prospects, which means that the bank periodically recruits new employees for this position. The main requirement for an applicant is a resume; without it, it is almost impossible to get a job today. This means that the main task of job seekers is to correctly compose a resume for the employer.
What loan officer responsibilities should every potential applicant have on their resume? First of all, the applicant must know the specifics of the job, know the job responsibilities, that is, all the functions that he will need to perform at the new place of work. It is imperative to write in your resume whether you have experience in this position or not. In any case, the applicant’s task is to prove to the employer that he is familiar with the specifics of the job and knows the job responsibilities and cope with them accordingly.
You will also need to provide some information about yourself in the form:
- last name, first name, patronymic, date of birth, residential address;
- education: name of higher educational institution, faculty, specialty;
- work experience: here you must indicate previous places of work, length of work and reason for dismissal;
- describe what professional skills you have, exactly those that will be useful to the employer as a credit specialist;
- personal qualities of the applicant that will be useful directly for the position of a credit specialist.
Please note that a sample loan officer resume can be found and downloaded online. You can also see a sample of filling out the questionnaire, but it is worth considering that in this question you need to write only reliable information about yourself, because the bank takes a responsible approach to the selection of employees.
So, the responsibilities of a credit consultant boil down to increasing the bank’s profits and attracting as many potential loan clients as possible. The profession is truly promising, because banking employees have excellent career prospects and high wages. And, by the way, credit specialists occupy not the last place in the banking structure. Therefore, when selecting employees, great attention is paid to the professional and personal skills of the applicant.
Today you will learn about what he does credit specialist(aka credit manager, credit inspector, credit expert), what his work is, how interesting and promising it is in terms of earnings, development, and career growth. I think that this will be useful to know not only for those who are looking for the financial sector, but also for everyone else for general development.
A credit specialist is today one of the most popular and sought-after vacancies among those offered by banks and. You can often get a job as a loan officer even without work experience or financial education. What is the reason for such a large number of vacancies for credit specialists, and why financial institutions are ready to hire literally everyone for them - more on this later.
First, let's look at what this work actually is. A loan officer is a person involved in the promotion, processing and issuance of loans. As you know, banks and other financial institutions have a huge number of various lending programs: some of them are quite complex, requiring a detailed and in-depth analysis of the borrower, while others are overly simple, allowing you to complete the entire procedure in a matter of minutes or hours. Accordingly, the level of training of a credit manager, depending on what kind of credit products he sells, may be different.
All vacancies for credit specialists that do not contain special requirements for candidates require working as a credit expert in issuing the simplest loans and loans that do not require any special knowledge. This work is done literally “automatically”; the responsibilities of a credit specialist boil down to the following:
1. Find as many potential borrowers as possible for the loan program for which he is responsible;
2. Take from them a minimum package of documents and an application for a loan;
1. Most often, loan issuance specialists are required to work at remote retail outlets, rather than at a bank.
2. The work of a credit inspector of this type is routine and monotonous.
3. The salary of a loan specialist is at the level of lower salaries in financial institutions.
4. To receive even such a salary, you will have to sell people on frankly unprofitable loan products.
5. If you do this especially successfully, you will be able to earn more.
I repeat that such rules apply to most available vacancies for credit managers, but certain options, of course, may be more interesting.
For example, it’s worth considering working as a loan officer at a car dealership. There, by processing documents that are issued in larger amounts, you can earn better money. At the same time, you can become an agent of an insurance company and earn commissions from the sale of MTPL and CASCO policies.
Working as a credit manager in a bank, directly in a branch, already opens up more prospects. Here you can grow up the career ladder, move to other positions or to work with more serious credit applications that require deep analysis, which is already better paid.
If you're looking to build a career in banking, a remote point-of-sale loan officer is the job to start with and is fairly easy to fill. The main thing is to try not to stay at it for too long, but to prove yourself well and move to work in a bank branch with a wider range of responsibilities in order to grow professionally.
Now you know what the job of a loan officer entails, and you can decide whether it is right for you. Do not forget that each vacancy should be considered individually: it may differ from the general principles of work of a loan officer, both for the better and for the worse.
That's all. The site will help you find good options for earning money and investing, teach you how to competently manage your personal finances and manage your family budget. Stay with us and stay tuned for updates. See you again!
