Consumer loans are a category of loan, provided to individuals, for personal, household, or family use. People often seek out consumer loans for helping them pay for larger valued items such as furniture, electronics, recreational vehicles, and other items generally regarded as non-essential. Loans where the intended use for the money is for things like education, medical expenses, and business are not considered consumer loans and are in a different category all their own. As a consumer loan servicing clerk, you handle paperwork and ensure that the loan goes through.
Loans and Loan Servicing
Just as there are many varied types of consumer loans, there are an equally varied number of lenders supplying loans to individuals. While loans for things like medical expenses and education are generally handled by specific lenders that deal only with particular sorts of loans, even the smallest public banks or credit union will have some type of consumer loan to offer their customers. Most consumer loans can be easily acquired with a simple application, and many institutions provide online application forms. As the clerk, you are not involved in creating a contract, but instead working with software and coordinating with other workers with filing and administration. You may be asked to maintain payment files and delinquent accounts. You answer to senior staff members.
The Work Environment
To obtain a loan, an individual must first speak to a loan officer, a position that is now mainly carried out by streamlined computer programs. It is a loan officer who decides whether or not the financial institution will offer the customer a loan, based on the creditworthiness, collateral, and other financial factors, and all the while, collaborating with the manager. If the loan officer deems the individual creditworthy, the application is passed on to the loan clerk to process.
It is the loan clerk who does most of the preparation of paperwork and administrative duties related to the loan, and depending on the size of the financial institution, may have more or fewer duties as required. A consumer loan service clerk is responsible for checking and maintaining the accuracy of loan paperwork, collecting and noting payments on loans, and perhaps most importantly, maintaining files for easy access.
Consumer loan servicing clerks are regarded as entry-level positions, but still within the accounting or financial industry, meaning they are ideal for gaining experience.
Educational Requirements and Experience
While some institutions prefer job applicants to have some sort of two or four-year college or university degree, the job requires no specific amount of education other than on the job training. However, the best way to progress quickly is to pursue higher education in hopes of reaching beyond this possession and assuming the role of a loan officer or even a manager. You are not required to have lending experience, but banking experience or previous jobs in a fast-paced office would look good on a resume. This is an opportunity for growth and is a job you can start right away. Why not look into UMCP or the schools listed below for a fast track to success?
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