Updated November 25, 2022
A finance expert employed by banks and other financial institutions is called a loan counselor. The job of a Loan Counsellor involves assisting potential borrowers in finding the best kind of loan for their needs. They perform as a go-between for the borrower and the clients.
In order to create a financial plan, the loan counselor reviews the client’s application documents and verifies the information provided. A Loan Counselor’s job is to explain the kind, interest rate, and conditions of loans provided by the hiring business. They deal with loan repayment concerns while observing the lending institution’s policies.
In short, a Loan Counsellor performs as a mediator to customers who need financial help from an institution for a set period of time with applied interest. They counsel them, answer their questions about current loans, and help clients in need by rescheduling payments or restructuring loans available to them.
What Does a Loan Counsellor Do?
A Loan Counsellor job role involves performing numerous tasks on a regular basis. They primarily help the borrowers choose the best loans for themselves per their requirements and also guide them throughout the application process.
Additionally, they advise loan applicants on loan repayment policies and regulations. A loan counselor creates new repayment arrangements and modifies the existing setup. He or She helps select financial awards to evaluate loan eligibility. A Loan Counsellor is usually the first point of contact for borrowers. They perform an initial screening of them, handle loan agreements, and maintain customer account information.
Analyzing
It is the responsibility of a loan counselor to analyze the financial status of applicants, including an assessment of their assets and credit, to decide if it is feasible to offer loans.
Approving Loans
A Loan Counsellor job involves approving loans within specified limits. Their job is calculating debt amounts, how much money is available to pay it off, and how long it will take.
Documentation
A Loan Counsellor checks loan agreements to confirm their accuracy and fulfillment per policy. They contact applicants, answer their questions about the requirements listed in the application, and complete the paperwork.
Updating Records
The duties of a loan counselor include maintaining and updating account records. He or She recategorizes account records concerning the status change of loan account holders.
Types of a Loan Counsellor
Education Loan Counsellor: Parents and students seeking college loans receive advice from an education loan counselor. Additionally, they must take telephonic inquiries and respond with appropriate information to students and their parents. An education loan counselor can also advise on financing choices for studying abroad.
Home Loan Counsellor: A home loan counselor’s job involves giving clients the necessary information about the bank’s various home loans. They make sure that financial transactions are conducted in accordance with bank policies.
How to Become a Loan Counsellor?
Step 1. We have mentioned here the steps to become a Loan Counsellor after class 10. Aspirants must successfully finish their 10+2 studies in mathematics, economics, business studies, or statistics with a minimum of 50 percent of marks.
Step 2. Entrance examinations are organized annually by colleges and universities to offer admissions to candidates in the academic courses running in them. The best undergraduate entry tests for Loan Counselors are given below:
Major Loan Counsellor Entrance Examinations
(I) IPU CET: Indraprastha University Common Entrance Test
(II) LPU NEST: Lovely Professional University National Entrance Scholarship Test
(III) AMU ET: Aligarh Muslim University Entrance Test
(IV) JMI EE: Jamia Millia Islamia Entrance Examination
(V) CUCET: Central Universities Common Entrance Test
(VI) BHU UET: Banaras Hindu University Undergraduate Entrance Test
03 Step. Candidates are mandatory to enroll in an undergraduate course to become Loan Counsellors. Below is a list of the significant undergraduate Loan Counselor programs:
Undergraduate Loan Counsellor Courses
| BBA Specializations | B.Com./ B.Com. Honors Specializations |
| Finance | Finance |
| Banking | Banking |
| Economics | Economics |
Step 4. Candidates who have completed an undergraduate program have a wide range of possibilities for shaping their careers.
Option 1: Aspire aspirants can start working in the industry after completing an undergraduate program. He or She can enroll in a postgraduate Loan Counselor program once they have a few years of work experience.
Option 2: After completing an undergraduate course in banking or a related specialization, individuals can enroll in a postgraduate Loan Counselor program. Additionally, they can begin working by obtaining internships as Loan Counselors at financial organizations.
Postgraduate Loan Counsellor Courses
| MBA Specializations | M.Com./ M.Com. Honors Specializations |
| Finance | Finance |
| Banking | Banking |
| Economics | Economics |
Skills and Qualities Needed to Become a Loan Counsellor
Communication Skills: If you wish to pursue your career as a Loan Counselor, you must have strong communication skills. He or she must make clear the terms and conditions of the loan throughout the documentation work.
Analyzing Skills: A Loan Counsellor’s job involves analyzing the verification documents provided by the clients and assessing the net credit and property value.
Accounting Skills: A Loan Counselor career requires solid knowledge of accounting software. He or she is needed to perform on it on a daily basis.
Mathematical Skills: A Loan Counselor is proficient in mathematics. In order to offer loans to potential consumers, he or she must determine their debt-to-income ratio.
Loan Counsellor Profile Details
Junior Loan Counsellor: A junior Loan Counselor commonly has an experience of 1 to 4 years. He or she is responsible for informing the borrowers or customers about the types of loans available with their limitations.
Senior Loan Counsellor: A senior loan counselor has at least 10 to 19 years of professional experience. He or she helps consumers who are having problems getting typical loans.
Loan Counsellor Salaries
The pay for a loan counselor varies according to their qualifications, work experience, and place of employment. The average starting salary of a Loan Counsellor in India ranges from Rs. 14,000 to Rs. 16,000 per month.
Frequently Asked Questions
Ans: To become a loan officer, you must have a UG or PG degree in business, finance, or economics.
Ans: A home loan counselor’s job involves giving clients the necessary information about the various home loans.
Ans: Yes.