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Who is a Loan Counsellor?
" A man who pays his bill on time is soon forgotten" ~ Oscar Wilde
A Loan Counsellor is a finance professional employed by banks and other financial institutes. The role of Loan Counsellor involve providing help to potential clients or borrowers to find the right loan or scheme as per their requirements. He or she acts as intermediary between the borrower and clients. Loan Counsellor processes clients’ application materials and verifies their information to come up with a financial plan. A Loan Counsellor holds the responsibility to explain the type, rate and terms of loans offered by the employing organisation. He or she addresses issues in repayment of loans while adhering to the policies of lending institution.
Loan Counsellor in a Nutshell
A Loan Counsellor acts as a facilitator to clients who require financial assistance by an institution for a period of time with applied interest. He or she counsels them and resolves their queries on existing loans and provides assistance to struggling clients by rescheduling payments or restructuring loans available to them.
Quick Facts for Loan Counsellor
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Industry
Finance
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Average Salary in India
₹17500
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Suitable for
Male, Female, Others
A career as a Loan Counsellor is not a gender-based role. A specific gender identity does not affect career growth as a Loan Counsellor. With required education qualification and skills, anyone can become a Loan Counsellor.
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Any special needs
No
Candidates with special needs are not suitable for a career as Loan Counsellor. The role as a Loan Counsellor requires him or her to travel to clients’ locations and verify their identity, evaluate the net value of their credit and properties to provide the loan of a specific limit.
Table of Contents for Loan Counsellor
What is the role of Loan Counsellor?
A Loan Counsellor performs numerous tasks on a daily basis. The prime responsibility of Loan Counsellor is providing assistance to borrowers on choosing the right loans for themselves as per their requirement and guide them throughout the application process. He or she also counsels applicants on repayments of loan policies and restrictions. A Loan Counsellor sets up repayment plans and modifies existing setup. He or she provides assistance in selection of financial awards to evaluate loan eligibility. A Loan Counsellor is usually the first point of contact for borrowers. He or she conducts initial screening of them, processes loan contracts and updates account records of clients.
Analysing
A Loan Counsellor job involves analysing the financial status of applicants which involves evaluation of their credits and property to determine the feasibility of granting loans.
Approving Loans
A Loan Counsellor's job duties involve him or her to approve loans within specified limits. He or she is responsible for calculating debt amounts and funds available to plan methods of payoff and estimate time for liquidation of debt.
Documentation
A Loan Counsellor is checking loan agreements to ensure their accuracy and completion as per policy. He or she contacts applicants, their queries concerning terms and conditions in the application and completes the paperwork.
Updating Records
A Loan Counsellor's work responsibilities involve maintaining and updating account records. He or she recategorises account records concerning the status change of loan account holders.
Types of a Loan Counsellor
There are types of loan counsellors. We have provided here details of major types of loan counsellor.
Education Loan Counsellor: An Education Loan Counsellor counsels the students and their parents applying for educational loans. He or she also requires to take telephonic inquiries and provide satisfactory answers to students and their parents. An Education Loan Counsellor may also provide advise on overseas options for education and avail loans.
Home Loan Counsellor: A Home Loan Counsellor disseminates work involves providing the required information about the various home loans offered by bank to clients. He or she ensures compliance with the bank policies concerning financial transaction.
What is the workplace/work environment of Loan Counsellor like?
A Loan Counsellor works in an office setting. It is a desk based job role. He or she works at financial institutions such as banks, credit unions and other entities. He or she checks the creditworthiness of clients and suggests them the loan products and schemes that suits their requirements. A Loan Counsellor career involves visits to clients’ locations to verify his or her residential details, communication address and property. A Loan Counsellor counsels clients on various loans they can avail, their restrictions and other relevant information.
Does Loan Counsellor require travelling?
Likely
A Loan Counsellor may often be required to travel to a client's or loan application location to evaluate the property and net credit value of the applicant. Based on borrowers' credit value, loans are made availed to them.
Employment Shifts
Full Time
A Loan Counsellor works full-time. There is no part-time, hourly basis, on-call and work from home provided in the career.as a Loan Counsellor.
A Loan Counsellor career is a typical 9 am to 5 pm job. Work hours often get extended due to visits to clients’ locations. A career as a Loan Counsellor does not involve any rotational shifts or night shifts.
Employment Nature
Contractual, Permanent
A career as a Loan Counsellor comes with a permanent employment nature. Usually employing organisations offer the role of Loan Counsellor on a permanent basis. There might be probationary periods for newly hired candidates, after completion of that period they become a full-time employee.
Work Place
Bank, Financial Institution
A Loan Counsellor is a desk-job based role. His or her role involves visiting clients to verify their residential address and communication details as well as their property.
Presence in Geographical Area
Urban
Financial institutions that grant loans are usually located in urban and semi-urban areas. Established financial institutions are more likely to be located in urban areas that offer variety of loan products and schemes. There are negligible opportunities in rural areas.
Time Pressure
Likely
A Loan Counsellor's career demands working under frequent time pressure and completing the documentation to avail the loans to clients.
Overtime Details
A Loan Counsellor role often requires to work overtime. Due to travel to client's location to evaluate their net property worth, loan counsellor's work hours get extended.
Weekly Hours of Work
Min 35 Hours
Usually, Loan Counsellor work a minimum of 35 hours per week. He or she may often be required to work extended hours to visit clients and verify their identification, including property and net credit.
How to become a Loan Counsellor?
Steps to become a Loan Counsellor
Are you interested in a career as a Loan Counsellor in India? This section will guide you through the steps on how to become a Loan Counsellor in India, offering you a clear path to enter this rewarding profession. Whether you are starting from scratch or looking to switch careers, this guide will help you understand the necessary qualifications and skills to excel in this field.
What are the skills and qualities required to become a/an Loan Counsellor?
We have listed below major Loan Counsellor skills. These skills are crucial in the Loan Counsellor work environment to remain efficient and productive.
Communication Skills: A career as a Loan Counsellor demands strong communication skills. He or she is required to explain the terms and conditions of the loan and complete the documentation work.
Analysing Skills: A Loan Counsellor role requires analysing the verification documents provided by the clients and evaluating the net credit and property value.
Accounting Skills: A Loan Counsellor career demands strong knowledge of accounting software. He or she is required to function on it on an everyday basis.
Mathematical Skills: A Loan Counsellor possesses strong mathematical skills. He or she is required to calculate the ratio of debt to income of potential clients to avail loans to them.
Popular Online Finance Courses and Certifications
Which certifications and internships can be helpful in becoming Loan Counsellor?
We have listed below major Loan Counsellor courses. Aspirants may opt for these courses to upgrade their skills and knowledge for a career as a Loan Counsellor.
Internship Availability
Aspirants are required to start their career from an entry-level position. Loan counselor internships increase the chances to acquire full-time job roles. An internship in a financial institution provides exposure and knowledge of functioning in the financial industry.
Career Path Progression for Loan Counsellor
Junior Loan Counsellor: A junior Loan Counsellor generally possesses an experience of 1 to 4 years. He or she is responsible for educating the clients or customers on types of loans available with their restrictions.
Senior Loan Counsellor: A senior Loan Counsellor possesses a work experience of 10 to 19 years or more. He or she counsels struggling clients having trouble qualifying traditional loans.
Loan Counsellor Jobs and Salaries
Junior Loan Counsellor
Contractual/Permanent
- Average Salary 15000
Job Description
A junior Loan Counsellor is a professional responsible for approving loans in certain limits. He or she verifies the identity of loan applicants and evaluates the net value of their credit and property.
Salary Description
The salary of a Loan Counsellor varies depending on their skills, experience and employing organisation. The average starting salary of a Loan Counsellor in India ranges from Rs. 14,000 to Rs. 16,000 per month.
Senior Loan Counsellor
Contractual/Permanent
- Average Salary 20000
Job Description
A senior Loan Counsellor's work responsibilities involve paying attention to the ratio of debt to income of potential clients to evaluate and establish reasonable repayment plans and present estimates.
Salary Description
The salary of a senior Loan Counsellor varies depending on his or her skills, experience, geographical location of employing organisation and its size and structure. The average salary of a senior Loan Counsellor is Rs. 240,000 per annum.
What is the job outlook for Loan Counsellor?
There is an expected job growth of 8 per cent in the Loan Counsellor career. The financial industry is constantly expanding, providing numerous employment opportunities to aspirants. Instead opting for traditional loans, people have started to avail loans from reputed financial institutions. It has been easier obtaining mortgages, auto loans, personal loans, home loans and other loans. There are numerous financial institutions that recruit loan counsellors to offer their products and schemes to potential clients being complianced with institution's policy.
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Frequently Asked Questions for Loan Counsellor
Que. What is the average salary of a Loan Counsellor?
Ans.The average salary of a Loan Counsellor in India is Rs. 20,000 per month.
Que. What is the minimum required education to become a Loan Counsellor?
Ans.The minimum required qualification to become a Loan Counsellor is Rs. 20,000 per month.
Que. What are the top recruiters of Loan Counsellor?
Ans.The top recruiters of Loan Counsellors are State Bank of India, Bank of Baroda, Bajaj Finserv, Axis Bank and Muthoot Finance.
Que. What are the top colleges of Loan Counsellor?
Ans.Some of the top Loan Counsellor colleges are School of Management, Dr DY Patil University, Navi Mumbai, HITS Chennai - Hindustan Institute of Technology and Science, GGSIPU Delhi - Guru Gobind Singh Indraprastha University, Amity University, Noida, Sandip University, Nashik, Alagappa University, Karaikudi and Jagannath University, Jaipur.
Que. What are various types of Loan Counsellors?
Ans.There are various types of Loan Counsellors that counsels loan requirements like Education Loan Counsellor, Home Loan Counsellor and Personal Loan Counsellor.
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Did you know?
Fact 1
Bank is derived from Italian word Banco which means bench or table with a small change coins
Fact 2
In ancient India, the legitimate lender could deprive the borrower of his or her property if he fails to repay the loan
Fact 3
If the borrower failed to repay the loan, he was sent to prison and used to become the slave of a lender in ancient Egypt
