What does a Loan Analyst do?

Learn all about Loan Analyst duties, skills and much more. Get expert advice on how to become a Loan Analyst.

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Brenna Goyette
Certified Professional Resume Writer, Career Expert

Published 3 min read

A loan analyst is a professional who works with individuals and businesses to assess their financial needs and provide advice on how to best obtain the necessary financing. They work with lenders to determine the best loan products for their clients and negotiate terms that are favorable to both parties.

Loan Analyst job duties include:

  • Research and analyze loan requests
  • Gather needed documentation from loan applicants
  • Analyze financial information to determine creditworthiness
  • Prepare reports detailing loan analysis findings
  • Present findings and recommendations to loan committee
  • Negotiate loan terms with approved borrowers
  • Monitor approved loans for compliance with terms
  • Coordinate with other departments to ensure timely loan closing
  • Maintain accurate records of all loan analysis activities
  • Perform periodic portfolio reviews to identify risk factors

Loan Analyst Job Requirements

Most loan analysts have a bachelor’s degree in business, economics, or a related field. Some employers may require loan analysts to have a master’s degree. Certification is not required, but it may give job seekers an edge in the job market. Loan analysts typically need several years of experience working in the financial industry before they can be promoted to a loan analyst position.

Loan Analyst Skills

  • Analytical skills
  • Profit and loss analysis
  • Financial analysis
  • Finance
  • Asset management
  • Real estate
  • Mortgage
  • Loan
  • Banking
  • Financial modeling
  • Business strategy
  • Investment banking

Related: Top Loan Analyst Skills: Definition and Examples

How to become a Loan Analyst

Loan analysts are responsible for evaluating and approving loan applications. They review financial information, such as income statements and asset documentation, to determine whether a loan applicant meets the criteria for approval. Loan analysts typically work in banks and other financial institutions.

To become a loan analyst, you will need at least a bachelor’s degree in finance or a related field. Many loan analysts also have a master’s degree in business administration (MBA) with a concentration in finance. You will also need strong analytical and mathematical skills to be successful in this role.

Once you have the necessary education and skills, you can begin your career by applying for entry-level jobs at banks and other financial institutions. With experience, you can eventually move into a senior loan analyst position. Some loan analysts also become certified public accountants (CPAs) or certified financial planners (CFPs).

Related: Loan Analyst Resume Example

Related: Loan Analyst Interview Questions (With Example Answers)