If you are an individual who likes to help other people and solve their problems and are interested in interacting with a variety of people, then taking up a career as a loan counselor would definitely prove to be of great help. The loan counselor responsibilities play a vital role in analyzing the financial situation of the applicant, understanding his/her loan requirements and providing him/her with the best possible loan solution. He/she may also work with the clients who are finding it hard to pay back their money and help them in managing their loan payments by providing them with the appropriate solution. Thus, the loan counselor needs to be equally responsible towards the financial organization as well as to its potential clients.
Key Responsibilities
The loan counselor assesses the financial condition of the applicant. He/she gathers all the vital financial details from the applicant that would help in smooth transition and approval of his/her loan. He/she gets information from the borrower regarding what is the amount that is being expected by the applicant. He/she may also give a rough estimate regarding what is the maximum loan amount that can be sanctioned while conforming with policies of the financial institution and guides him/her regarding the payment terms and conditions. He/she thus comes out with the best possible loan solution by adhering to the policies of the organization. The points given below will help you to understand the role and responsibilities of the loan counselor in detail and will help you in giving a better insight:
The loan counselor collects every detail and specific information required for the approval of the loans as well as assists and guides them to complete all the necessary paper work. He/she ensures that every bit of information provided by the applicants is accurate and complete and that it is compliant with the rules and regulations of the organization and submits them for further approval. He/she calculates the loan amount after ensuring that proper funds are available and provides instructions regarding the methods of payoffs.
He/she makes efforts to reduce the extra costs that need to be incurred by the clients and prioritizes the payments based on credit terms. He/she reviews the accounts and assists the collection agencies after determining the write offs. He/she contacts the creditors and updates them regarding the financial condition and makes arrangements for payment adjustment so that both the creditors as well as the applicants are benefitted. He/she also keeps and updates the account records, categorizes them, and makes the necessary changes as its status changes and reviews the billings for its accuracy.
He/she counsels on the financial problems faced by the clients and makes sure that the lowest interest rate is offered to them. He/she analyzes the market condition and promotes the loan products and services wherever possible, so as to grab the potential clients. He/she reviews the negative histories and recommends with solutions that would help in ameliorating the financial situation and makes references to lenders who grant loans for the applicants who do not have the best credit history. He/she determines the loan eligibility of the applicant by making use of various electronic database and software. Thus, he/she needs to handle wide variety of important duties.
Essential Skills and Abilities
The loan counselor needs to be good at gathering all the vital financial details as well as analyzing and evaluating this information so as to judge whether the individual is fit to be eligible for the loan that he/she is expecting. Strong and assertive communication skills, desire to help people in difficult situations or to those who are needy, attention to details, computer proficiency, etc., are some of the other required skills. He/she should be totally customer centric and should be able to demonstrate professional behavior while interacting and should be ready to work and adhere to the given deadlines. He/she should be able to come out with solutions in complex issues with excellent organization, follow through and management skills. Strong negotiation skills with the ability to make good decisions are some of the other required skills.
Educational Background
The minimum eligibility criteria required to qualify for the post of a loan counselor is that he/she should have completed at least a high school diploma or GED. Those who have a background in collection, sales, call center, etc., would also get preference. Those with a relevant qualification in finance, economics, business administration, etc., will be at greater advantage.
Work Schedule
This professional normally works in collections, mortgage companies or in debt resolution within the banks. This is a full time position and may need to work beyond the normal duty hours in case he/she needs to meet the targeted deadlines.
Salary Details
The salary for this professional normally ranges in between $30,000 to $44,000. The average median remuneration offered is close to $42,000. However, this is only a general idea and may differ depending on the size, location and type of the organization he/she is employed in. The educational background, skills and experience are also some of the main factors responsible for calculating the final salary package.
Career Prospects
In the recent times, the trend of people applying for loans has increased, but most of them do not have much knowledge about its procedures. It is here that the loan counselor plays a vital role and is instrumental in helping out the applicant by providing him/her with the best possible services. Thus, the demand is definitely going to rise and those who have proved their capabilities will surely move up to higher positions.
Thus, if you want to ensure a promising and lucrative career ahead, the loan counselor responsibilities must be carried out in a professional manner.