Intermediary Functionary
A loan officer acts as an intermediary between the bank and the financial institution for which he functions. A loan officer is known by different names in different financial institutions. He is the person who connects the lender and the borrower in a financial institution. Therefore, he does the work of an intermediary bank. The institutions provide business and personal loans through the loan officer. His primary responsibility is to find a loan agreement that is suitable to the borrower and the lender or the bank or the financial institution.
Known by different names in different institutions, this person should have the knowledge of the various types of loans that are provided by institutions. In addition to having a general understanding of the loans, he should have a working knowledge of the loans and the requirements that let applicants successfully qualify for it.
The loan officer shall have the expertise to evaluate the financial conditions of the loan applicants. There can be situations where loan applicants are seeking a loan to tide over their financial crisis or taking loans to establish a credit history for themselves. An expert loan officer will be able to identify the loan applicants who are in need of loans but have mitigating circumstances that are to be taken care of before they lend the money.
A loan officer has chances of working in several of the financial institutions that have lending operations, especially in intermediary banks. Banks employ loan officers in the different branches of the banks for focusing on the different types of loans, such as personal or business loans. Other commercial lending institutions that specialize in the business expansion funding at the national and international levels, consolidation loans , underwriting educational loans, also employ loan officers to work for them.
Intermediary Bank Functions
The lending officers also work online with the applicants to accept and evaluate applications for lending finance to them. This makes it possible for loan applicants to interact with loan officers far and near, to have a wide variety of contacts, instead of depending on the local banks and financial institutions to acquire them.
A loan officer is the connecting link between the lender and the borrower.
