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Loan Officer is a person responsible for evaluating and recommending the approval of loan applications for various organizations and persons. The major reason for the demand for this job profile is majorly due to the tremendous increase in the growth of loan officers. There are numerous ways to pursue a career as a loan officer. However, one common step is completing a degree in business or any other relevant subject. If you want to know more about how to become a loan officer in India, what is a loan officer, what top universities for loan officers in India, and much more, then Keep Reading!
Table of Contents
| Name of the Industry | Banking |
| Eligibility | Minimum a bachelor’s degree in business or finance or any other relevant fields |
| Average Salary | INR 1,75,000 |
| Job Opportunity | Commercial loan officers, Consumer loan officers, Loan collection officers, Loan underwriters |
Who is a Loan Officer?
A loan officer is a financial expert who assists people, small businesses, and corporations with borrowing money to achieve objectives like purchasing a home or investing in new equipment to expand a firm. Potential borrowers can receive guidance from a loan officer regarding the entire lending procedure, including all of the terms of the loans.
Loan officers can assist people and businesses with borrowing money by handling a variety of loans, including education, commercial, small business, auto, and home loans, to mention a few.The major reason for the popularity of this job profile is the availability of job opportunities at various top organizations as loan officers with lucrative packages.
Also Read: Career as a Banker
Steps on How to Become a Loan Officer
You are required to follow a few steps to pursue a career as a loan officer. These important steps are as follows;
STEP 1
Before actually opting for any career, you must first analyze the pros and cons of pursuing a particular profession. After completing this small exercise, you must make up your mind by researching the steps you must follow.
STEP 2
After completing the above step, you are first required to complete your education. You can pursue a high school diploma or equivalent to become a loan officer. However, you are suggested to finish high school, preferably with a science or commerce stream, and then get admitted into the undergraduate degree in finance or business or equivalent from an officially recognized institution.
STEP 3
After completion of the above steps, you are then required to either pursue higher studies or you can search for job opportunities. There are various job opportunities available to students after completing the bachelor’s degree in government and private sectors.
Types of Loan Officers
Consumer Loan Officers
These are officers involved in recommending and approving loans to people who require loans for a variety of reasons like home building purposes, buying a car, student loans for pursuing higher education etc. In such situations, loan officers are required to guide loan applicants through the loan application process and repayment of loans. Such tasks are completed by these consumer loan officers with the aid of automated underwriter software. The average starting salary of a consumer loan officer is INR 3.0 LPA and this can shoot up to INR 10.0 LPA depending upon experience and expertise.
Commercial Loan Officers
For companies that need loans to enhance or expand operations, buy supplies, or both, commercial loan officers assist in recommending and approving loans. Since there are so many company loan applications, loan officers must come up with a way to put together a package of loans from several institutions. A commercial loan officer’s initial compensation is typically INR 3.0 LPA, however, depending on experience and expertise, this can rise to INR 25 LPA.
Mortgage Loan Officers
Mortgage loan officers, who are authorized to recommend and approve loans for both residential and commercial properties, are known as mortgage loan originators (MLOs). They specialize in providing mortgage loans, which are commonly used to purchase real estate (property and buildings). Also, they are involved in the process of acquiring customer financial data (such as tax returns and debts) in order to assess their suitability as mortgage loan applicants. A mortgage loan officer’s initial compensation is typically INR 3.5 LPA, however, depending on experience and expertise, this can rise to INR 7.0 LPA.
Top Colleges for Business Degrees in India
There are numerous colleges and universities in India that offer degrees in business and finance with excellence in education as well as teaching. Some of the popular colleges and universities that you can pursue to become a loan officer are as follows;
- Loyla College
- Lady Sri Ram College
- the University of Delhi
- Indian Institute of Management
- SP Jain Institute of Management and Research
- Management development institute
- Department of Management Studies IIT Delhi
- XLRI
Cost of Studying
One of the major aspects that you must analyze before pursuing a particular course and career is the cost of studying. The knowledge or estimate about the cost of studying a specific course helps in getting financially prepared. The average cost of studying ranges between INR 6,000- 60,000. However, studying costs differ depending on the universities, courses, and much more.
Eligibility Requirements
You are required to qualify for a few eligibility requirements to pursue a career as a loan officer. Some of the major eligibility requirements include the following;
- To pursue an undergraduate degree in business or finance, you must complete high school with a minimum of 55% marks from an officially recognized institution. However, after high school completion, admission is made based on merit and scores obtained in entrance exams such as CAT, CUET, etc.
- To pursue a master’s degree in business, finance, or other relevant subjects, you must first have an undergraduate degree with a minimum of 65% from an officially recognized institution.
Career Prospects
As mentioned above, numerous job opportunities are available to students after completing a degree in business and finance. One of the highly demanded job profiles is loan officers, who are recruited by top global organizations and are offered lucrative packages. However, you can pursue a career as a loan officer after completion of an undergraduate degree, or you can opt for higher studies such as a master’s degree or a Ph.D. in business or finance or any other relevant subjects as per your interest and availability of the courses.
Also Read: How to Become a Financial Analyst
Salary
Salary is another major reason that contributes to the popularity of loan officers. Loan officers receive lucratively salaried; however, these salaries depend upon various factors, including experience level, educational qualifications, and much more.
| Experience Level | Annual Salary |
| Freshers | INR 3,00,000- 4,00,000 |
| Mediocre | INR 4,50,000- 6,00,000 |
| 5-10 years | INR 6,50,000- 12,00,000 |
FAQs
That’s right. Most businesses hire loan officers with two to five years of relevant experience and a high school diploma. To succeed in this field, obtaining certifications as a mortgage loan originator or Certified Lender Business Banker is highly recommended.
A Loan Officer’s primary responsibilities include the following:
Utilizing tools like credit ratings and income level questions, approach individuals and businesses with various loan schemes. Communicate with individuals and companies applying for loans to gather personal and financial information and respond to their inquiries. Obtain, verify, and analyze various client or business documents to prove their financial status and creditworthiness.
When applying for a mortgage loan officer position, most commercial banks prefer candidates with certification as mortgage loan originators (MLOs). In addition to this certification, the following international certifications can help candidates succeed in the commercial banking industry:
Certified Trust and Financial Advisor (CTFA), Certified Lender Business Banker (CLBB), and Certified Financial Marketing Professional (CFMP)
If you want to get into a high university, you’ll need more than just good grades; you’ll also need flawless application because the competition is fierce. You may enlist the assistance of Leverage Edu specialists to assist you with the application process to study abroad so you can realize your goals. Call us immediately at 1800 57 2000 for a free 30-minute consultation.