Free Loan Approval Officer Course (6Months)

Loan Approval Officer:

Brief Job Description:

Loan officers evaluate, authorize, or recommend approval of loan applications for people and businesses. Their tasks include compiling the loan application file, performing preliminary checks, approving loans and submitting recommendations for loans beyond their limits for further processing.
Personal Attributes:

The individual is required to have numerical and analytical skills. He must be able to perform multiple tasks accurately within fixed timelines.

Prepare loan file:

Operations
To be competent, the user/individual on the job must be able to:
PC1. Receive list of applicants and the respective loans applied for
PC2. Obtain all information/documents necessary for applying for each type of loan from sales agent/client liaison
PC3. Verify whether all documents listed in the document checklist are received
PC4. Check for type of loan applied for and required steps in the approval process for the same
PC5. Obtain/prepare list of officers/departments that are required to sign-off on the various steps along the loan approval process
PC6. Combine all collected documents into the loan file
PC7. Scrutinize the file for any missing information/documents
PC8. Contact client liaison or sales agent if any further documentation or clarifications are required to complete loan file
PC9. Raise queries to manager/supervisor as appropriate in case any clarifications regarding the file are required
PC10. Analyze applicant’s financial status through documents received such as property related documents, income statements etc.
PC11. Compile basic financial indicators such as accumulated repayment capacity indicator, free net cash flow indicator, indebtedness ratio etc. as required by organizational procedure
PC12. Compute loan repayment schedule to determine most appropriate loan terms and conditions
PC13. Ensure loan file is developed in accordance with pre-defined structure
PC14. Prepare summary sheet for loan file containing the key characteristics of the loan application and applicant profile including financial indicators compiled in a concise manner
PC15. Label loan file with required instructions for various departments/officers and approvals necessary for processing the loan

General/ Administrative
To be competent, the user/individual on the job must be able to:
PC16. Prepare reports on status of loan files prepared
PC17. Adhere to scheduled timelines for compiling documents
PC18. Inform Supervisor of any technical errors/delays encountered

Organizational Context

The user/individual on the job needs to know and understand:

KA1. Types of Loan products and services offered by organization

KA2. Types of documents and information required for a loan application from the client such as KYC (know your customer) documents and forms, photographs, attested certificates etc.

KA3. Organizational procedure for loan approval process

KA4. Credit risk and regulatory guidelines outlined by the organization relevant to loans such as sectors to avoid, customer profiles to scrutinize

KA5. Impact and Implications of not following risk compliance requirements

KA6. Credit risk, financial and regulatory guidelines regarding loans outlined by the Central bank and relevant authorities

KA7. Relevant legal knowledge– Value of stamp paper on which agreement is to be signed according to loan value, guarantor details mandated, verification of title etc.

KA8. Roles and responsibilities of all individuals/teams involved in the loan application process

KA9. Quality standards set by organization for loan approval process

KA10. IT processes and operational procedure for information systems used in the organization

KA11. Customer profiling concepts such as income stability, age, dependent status etc.

KA12. Escalation matrix for unresolved problems

KA13. Administrative and clerical procedures and systems such as word processing, managing files, records, and other office procedures

Technical Knowledge

The user/individual on the job needs to know and understand:

KB1. Nature and types of various loans and their terms of services and conditions

KB2. Basic economic principles , understanding of financial industry and markets, reporting of financial data

KB3. Credit concepts and methods to assess credit worthiness

KB4. Financial/Accounting concepts such as minimum interest rates, IRR, payment schedule norms, processing fee norms etc.

KB5. Techniques to identify red flags in application forms/documents

KB6. Laws, legal codes, court procedures, precedents, government regulations, executive orders, agency rules relevant to background and credit checks

B7. Codes and labels used by organization for processing loans

KB8. Limits specified by organization for approving loans within officer’s discretion

Generic Skills

Writing Skills
The user/ individual on the job needs to know and understand how to:
SA1. Fill forms, label documents in clear manner
SA2. Prepare concise reports and summary of loan documents for review

Reading Skills
The user/individual on the job needs to know and understand how to:
SA.3 Write sentences, paragraphs in work related documents
SA.4 Understand organizational and industry related regulations and guideline

Oral Communication (Listening and Speaking skills)
The user/individual on the job needs to know and understand how to:
SA.5 Listen to instructions and feedback from superiors and other departments, taking time to understand the points made and asking relevant questions to complete the loan appraisal process effectively
SA.6 Communicating in a clear and precise manner with others when receiving inputs or presenting the loan appraisal

Loan Officers : Occupational Outlook Handbook : U.S. Bureau of Labor  Statistics

Professional Skills

Decision Making
The user/individual on the job needs to know and understand how to:
SB1. Decide what documents are necessary for loan applications and obtain/compile them accordingly
SB2. Make clear, logical decisions when compiling loan file.

Organizational Skills
The user/individual on the job needs to know and understand how to:
SB3. Plan schedule for preparing loan files according to volume of applications and assigned timelines
SB4. Work with other colleagues to ensure speedy processing of all loan applications

Problem Solving
The user/individual on the job needs to know and understand how to:
SB5. Address problems arising due to technical issues or administration related issues and escalate those issues beyond one’s role Analytical Thinking
The user/individual on the job needs to know and understand how to:
SB6. Analyze trends from industry reports, financial projections for policies, etc.
SB7. To assess financial status based on the relationship & work with client to establish long term goals

Motivation
The user/individual on the job needs to know and understand how to:
SB8. Be self motivated to deliver results set by the organization and respective superiors.
SB9. Motivate peers and subordinates to complete tasks ahead of schedule
SB10. Take charge and maintain accountability for tasks completed

Critical Thinking
The user/individual on the job needs to know and understand how to:
SB11. Consistently obtain feedback and improve their performance
SB12. Exercise judgment in unforeseen situations which preserve company values and are in line with organizational guidelines

Process and Review Loans:

Operations
To be competent, the user/individual on the job must be able to:
PC1. Submit applicant details for background and profile checks
PC2. Initiate field credit investigations by notifying external/field agent, if applicable
PC3. Conduct a tele-verification for validating preliminary details of customer if necessary
PC4. Submit applications to appropriate credit and risk team/personnel for customer verification and credit ratings/recommendations reports
PC5. Compile details such as Fleet list, Repayment Track Record, etc. into the loan file, to assist in appraising the credit worthiness of the customer
PC6. Confer with bank experts and underwriters to resolve application problems such as mortgage evaluation etc.
PC7. Update inputs received from experts, background and credit checks into the loan file
PC8. Update all details in the loan file into information system if necessary/applicable
PC9. Verify all personnel/teams involved have signed off the loan application
PC10. Evaluate application and reports from credit/risk analysts, underwriters/underwriting software etc.
PC11. List out recommendations (pros and cons) after assessment of application with a clear recommendation for action to be taken
PC12. Compile the Final Approval Memo (FAM) if applicable
PC13. Ensure that the purpose of financing and category of customer adheres to company norms
PC14. Approve/Reject loans which are within limits specified by the organization
PC15. Forward loan applications outside/above specified limits to credit committee/senior loan officer/management for approval
PC16. Present summary of loan application and appraisal report to credit committee/management if applicable/necessary
PC17. Answer queries regarding the loan application and appraisal from the management/credit committee

General/ Administrative
To be competent, the user/individual on the job must be able to:
PC18. Prepare reports on status of loan applications processed
PC19. Adhere to scheduled timelines processing applications
PC20. Inform Supervisor of any technical errors/delays encountered
PC21. Respond to any queries regarding application from customer liason/other departments

Organizational Context

The user/individual on the job needs to know and understand:

KA1. Types of Loan products and services offered by organization

KA2. Types of documents and information required for a loan application from the client such as KYC (know your customer) documents and forms, photographs, attested certificates etc.

KA3. Credit Evaluation procedures as outlined by the organization

KA4. Organizational procedure for loan approval process

KA5. Credit risk and regulatory guidelines outlined by the organization relevant to loans such as sectors to avoid, customer profiles to scrutinize

KA6. Impact and Implications of not following risk compliance requirements

KA7. Credit risk, financial and regulatory guidelines regarding loans outlined by the Central bank and relevant authorities

KA8. Legal framework and laws concerning background of applicants

KA9. Roles and responsibilities of all individuals/teams involved in the loan application process

KA10. Quality standards set by organization for loan approval process

KA11. IT processes used in the organization

KA12. Customer profiling concepts such as income stability, age, dependent status etc.

KA13. Customer credit verification, background check reports and nature of the information to be obtained from clients

KA14. Basic criteria for recommending loans

KA15. Criteria for identifying red flags in loan application and background reports

KA16. Escalation matrix for unresolved problems

KA17. Administrative and clerical procedures and systems such as word processing, managing files and records, stenography and transcription, designing forms, and other office procedures and terminology.

Loan Officers : Occupational Outlook Handbook: : U.S. Bureau of Labor  Statistics

Technical Knowledge

The user/individual on the job needs to know and understand:

KB1. Nature and types of various loans and their terms of services and conditions

KB2. Methods of credit evaluation

KB3. Basic economic principles and understanding of financial industry and markets

KB4. Financial/Accounting concepts such as minimum interest rates, IRR, payment schedule norms, processing fee norms etc.

KB5. Laws, legal codes, court procedures, precedents, government regulations, executive orders, agency rules relevant to background and credit checks

KB6. Codes and labels used by organization for processing loans

KB7. Limits specified by organization for approving loans within officer’s discretion

KB8. IT skills and operating procedures for operating underwriting software/organization’s information system

KB9. Technique to interpret credit verification and background reports

Generic Skills

Writing Skills
The user/ individual on the job needs to know and understand how to:
SA1. Fill forms, label documents in clear manner
SA2. Prepare concise reports and summary of loan documents for review

Reading Skills
The user/individual on the job needs to know and understand how to:
SA3. Write sentences, paragraphs in work related documents
SA4. Understand organizational and industry related regulations and guideline

Oral Communication (Listening and Speaking skills)
The user/individual on the job needs to know and understand how to:
SA5. Listen to instructions and feedback from superiors and other departments, taking time to understand the points made and asking relevant questions to complete the loan appraisal process effectively
SA6. Communicating in a clear and precise manner with others when receiving inputs or presenting the loan appraisal

Professional Skills

Decision Making
The user/individual on the job needs to know and understand how to:
SB1. Decide what documents are necessary for loan applications and obtain/compile them accordingly
SB2. Make clear, logical decisions when compiling loan file.

Organizational Skills
The user/individual on the job needs to know and understand how to:
SB3. Plan schedule for preparing loan files according to volume of applications and assigned timelines
SB4. Work with other colleagues to ensure speedy processing of all loan applications

Problem Solving
The user/individual on the job needs to know and understand how to:
SB5. Address problems arising due to technical issues or administration related issues and escalate those issues beyond one’s role Analytical Thinking
The user/individual on the job needs to know and understand how to:
SB6. Analyze trends from share industry reports, financial projections for policies, etc.
SB7. To assess financial status based on the relationship & work with client to establish long term goals

Motivation
The user/individual on the job needs to know and understand how to:
SB8. Be self motivated to deliver results set by the organization and respective superiors.
SB9. Motivate peers and subordinates to complete tasks ahead of schedule
SB10. Take charge and maintain accountability for tasks completed

Critical Thinking
The user/individual on the job needs to know and understand how to:
SB11. Consistently obtain feedback and improve their performance
SB12. Exercise judgment in unforeseen situations which preserve company values and are in line with organizational guidelines

How a Mortgage Loan Officer Goes the Extra Mile for Their Clients

Perform Post Loan Processing tasks:

Operations
To be competent, the user/individual on the job must be able to:
PC1. Combine all relevant documents from approval process into the loan file
PC2. Destroy documents that are no longer required through appropriate procedures outlined by organization
PC3. Update digital loan file with required details if necessary/applicable
PC4. Forward all application details for approved loans to disbursal team/client contact personnel for loan disbursement
PC5. Hand over physical loan file to appropriate personnel/team/third party for storage
PC6. Forward all application details for rejected/loans pending further processing to client contact team/personnel for notifying clients on loan status
PC7. Prepare report listing all applications processed and status of application
PC8. Prepare list of all pending applications and timelines for processing them
PC9. Report any errors/problems faced during approval process for further action/developing standardized solutions for future cases
PC10. Submit reports to supervisor/management on number of applications processed, number of loans approved and rejected

General/ Administrative
To be competent, the user/individual on the job must be able to:
PC11. Prepare reports on status of loan files processed and handed over
PC12. Adhere to scheduled timelines processing applications
PC13. Inform Supervisor of any technical errors/delays encountered
PC14. Respond to any queries regarding application from customer liason/other departments

Organizational Context

The user/individual on the job needs to know and understand:

KA1. Organizational procedure for loan approval process

KA2. Credit risk and regulatory guidelines outlined by the organization relevant to loans such as sectors to avoid, customer profiles to scrutinize

KA3. Impact and Implications of not following risk compliance requirements

KA4. Credit risk, financial and regulatory guidelines regarding loans outlined by the Central bank and relevant authorities

KA5. Roles and responsibilities of all individuals/teams involved in the loan application process

KA6. Loan products and services offered by organization

KA7. Quality standards set by organization for loan approval process

KA8. IT processes used in the organization

KA9. Procedure for handover of loan documents to appropriate personnel

KA10. Procedure for destruction/shredding of sensitive documents/documents no longer required

KA11. Basic criteria for recommending loans

KA12. Escalation matrix for unresolved problems

KA13. Administrative and clerical procedures and systems such as word processing, managing files and records, stenography and transcription, designing forms, and other office procedures and terminology.

Technical Knowledge

The user/individual on the job needs to know and understand:

KB1. Nature and types of various loans and terms of services and conditions

B2. Methods of storage and handling for sensitive documents as stipulated by organizational procedure

KB3. Laws, legal codes, court procedures, precedents, government regulations, executive orders, agency rules relevant to background and credit checks

KB4. Codes and labels used by organization for processing loans

KB5. Basic computer and IT skills to operating underwriting software/organization’s information system

Generic Skills

Writing Skills
The user/ individual on the job needs to know and understand how to:
SA1. Fill forms, label documents in clear manner
SA2. Prepare concise reports and summary of loans processed

Reading Skills

The user/individual on the job needs to know and understand how to:
SA3. Written sentences, paragraphs in work related documents
SA4. Organizational and industry related regulations and guideline

Oral Communication (Listening and Speaking skills)
The user/individual on the job needs to know and understand how to:
SA5. Listen to instructions and feedback from superiors and other departments
SA6. Take time to understand the points made and asking relevant questions to complete the loan appraisal process effectively
SA7. Communicating in a clear and precise manner with others when receiving inputs or presenting the loan appraisal

Professional Skills

Decision Making
The user/individual on the job needs to know and understand how to:
SB1. Decide what documents are necessary for loan applications and obtain/compile them accordingly
SB2. Make clear, logical decisions when compiling loan file.

Organizational Skills
The user/individual on the job needs to know and understand how to:
SB3. Plan schedule for preparing loan files according to volume of applications and assigned timelines
SB4. Work with other colleagues to ensure speedy processing of all loan applications

Problem Solving
The user/individual on the job needs to know and understand how to:
SB5. Address problems arising due to technical issues or administration related issues and escalate those issues beyond one’s role Analytical Thinking
The user/individual on the job needs to know and understand how to:
SB6. Analyze trends from share industry reports, financial projections for policies, etc.
SB7. To assess financial status based on the relationship & work with client to establish long term goals

Motivation
The user/individual on the job needs to know and understand how to:
SB8. Be self motivated to deliver results set by the organization and respective superiors.
SB9. Motivate peers and subordinates to complete tasks ahead of schedule
SB10. Take charge and maintain accountability for tasks completed

Critical Thinking
The user/individual on the job needs to know and understand how to:
SB11. Consistently obtain feedback and improve their performance

SB12. Exercise judgment in unforeseen situations which preserve company values and are in line with organizational guidelines