What does a Loan Manager do?
Published 4 min read
A loan manager is responsible for the administration of loans and the management of a team of loan officers. They work with borrowers to ensure that their loan is repaid in a timely manner and that they are able to make their payments on time. They also work with lenders to find the best terms for the loan and to negotiate the interest rates.
Loan Manager job duties include:
- Originate loans in accordance with company guidelines
- Review loan applications and documentation to determine if applicant and collateral meet loan criteria
- Analyze applicant financial status, credit, and property evaluation to determine feasibility of granting loan
- Approve loans within specified limits, and refer loan applications outside those limits to management for approval
- Deny loans by explaining reasons for denial to applicants
- Maintain knowledge of current lending regulations and underwriting requirements
- Keep abreast of changes in the financial industry that may impact the company’s ability to originate or service loans
- Manage a team of loan officers and support staff
- Train new loan officers and support staff on company policies and procedures
- Monitor staff performance and provide feedback and coaching as needed
Loan Manager Job Requirements
Loan managers typically need at least a bachelor's degree in finance, accounting, business administration, or a related field. Many loan managers also hold professional certifications, such as the Certified Treasury Professional (CTP) designation. Loan managers typically have several years of experience working in commercial lending or another financial role.
Loan Manager Skills
- Analytical skills
- Profit and loss analysis
- Financial analysis
- Finance
- Asset management
- Real estate
- Loan management
- Mortgage
- Banking
- Financial modeling
- Risk management
Related: Top Loan Manager Skills: Definition and Examples
How to become a Loan Manager
Loan managers are responsible for the administration of loan portfolios. They work with borrowers to ensure that loans are repaid in a timely manner and that payments are made according to the terms of the loan agreement. Loan managers also work with lenders to identify and resolve any problems with the loan portfolio.
To become a loan manager, you will need to have a bachelor’s degree in business or a related field. You will also need to have experience working in the financial industry, preferably in a position that involved loan administration. Strong communication and interpersonal skills are essential, as you will be dealing with borrowers and lenders on a daily basis. Organizational skills are also important, as you will be responsible for managing a large portfolio of loans.
If you are interested in becoming a loan manager, contact your local banks and financial institutions to inquire about job openings. You can also search for job postings online at job boards or career websites. Once you have found a few potential positions, submit your resume and cover letter and wait to hear back from the employer. If you are offered an interview, be sure to prepare ahead of time by researching the company and practicing your answers to common interview questions.
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