Credit and Loans Officers
Analyse, evaluate and process credit and loan applications.
End of month at the lending desk
You are a credit officer at a lender, checking applications against the lending rules and deciding which to approve. It is the last Friday of the month, and the team's targets are on a whiteboard. Three applications are waiting and each one has something a bit odd about it.
Choose what you would do. Then see what happens. There are often good reasons for each choice.
I have a customer who needs approval by tonight or she loses the car. The paperwork is nearly there, but one of the payslips is a bit blurry. I am sure it is fine. Can you just approve it?
Approve it on the basis of the readable payslips
The blurry payslip turns out to show a lower income than the others. The loan was approved on figures that were wrong, and now the customer is struggling.
Decline the application because the paperwork is incomplete and ask them to reapply
The rule was followed, but a customer who qualified lost her car over a blurry photo. One phone call for a clear copy would have saved the sale.
Ask for a clear copy today and say you will assess it on arrival
A clear copy comes at five, and the figures check out. The customer gets her car. A short wait is not the same as a no.
You have declined my application. I do not understand. I have never missed a payment in my life. Why can I not just be told what I did wrong? I deserve to know.
Explain the reasons in plain words, what he can do next and when he could apply again
He is still unhappy, but he understands. The decision stands, and he has a clear path. A good explanation does not remove the sting, though it lets him move on.
Say what the main reasons were and what he can do next
He asks a good question about his existing debt and thanks you for being straight with him. Declining someone is hard, and explaining it clearly is a way to respect them.
Tell him the system makes the decision and you cannot discuss it
He hangs up angry and tells his friends. You are the one with the information, and refusing to explain is not the same as following the rules.
I lost my job last month and I cannot make this fortnight's payment. I am scared. I did not know who else to call. What happens now?
Tell him first that missing the payment will hurt his credit score and cost him fees
That is true, but it is the first thing you say to a frightened person, and it makes him go silent. You can be honest and still start with how you can help.
Listen, explain the hardship options and connect him with that team
Imran breathes out. The hardship team talks him through a plan that suits him. You have not fixed everything, but you have shown him a way forward.
Take his details and promise someone will call him back
He is relieved for a day, but nobody calls until the following week. Passing someone on is fine, as long as you make sure it happens.
How it went
The month ends with a pile of files cleared, one declined for good reasons and one customer helped through a bad patch. Credit work is about numbers, but it is also about fairness, listening and knowing what to ask. Do you think you could say no kindly?
This is a simplified, fictional situation to help you explore. It is not professional instruction or a test of your ability.
Case study: The overtime that did not appear
A fictional case set in the lending team at a mid-sized lender that offers personal and home loans.
The situation
Kavita, a credit officer at Wattlebird Finance, was assessing a loan application from a couple buying their first car. The payslips showed regular overtime that lifted the income, but the bank statements showed only the base wage arriving each fortnight. The application could be approved on the figures given, but the numbers did not match up. A sales colleague was keen to close before the end of the month.
What they did
Kavita did not assume the couple were being dishonest. She rang them and asked, in a friendly way, whether the overtime was paid separately. They explained it was paid into a second account, and sent those statements. She then compared the full set and found the income was real but lower than shown on the payslips. She approved a smaller loan, explained the reason and offered to look at the original amount again once they had saved a bit more.
How it turned out
The couple bought a cheaper car and said they appreciated being told plainly. The sales colleague was disappointed at the smaller figure but accepted it. Kavita noted the second-account issue in the team guide.
What would you do?
- What was Kavita's first reaction, and why do you think she did not accuse the couple?
- How do you think the couple felt when they got a smaller loan?
- How can a credit officer protect the lender and also treat customers fairly?