How to Become a Commercial Loan Officer

PDF download Download Article
PDF download Download Article

Finding loans for businesses can be rewarding for the business and the commercial loan officer. This banking career involves selling knowledge, expertise, and loans to potential business clients. Most loan officers work for financial institutions within the banking industry. Learn how to become a commercial loan officer for a rewarding banking career.

Steps

PDF download Download Article
  1. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/d\/dc\/Become-a-Commercial-Loan-Officer-Step-1.jpg\/v4-460px-Become-a-Commercial-Loan-Officer-Step-1.jpg","bigUrl":"\/images\/thumb\/d\/dc\/Become-a-Commercial-Loan-Officer-Step-1.jpg\/aid1307240-v4-728px-Become-a-Commercial-Loan-Officer-Step-1.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"<div class=\"mw-parser-output\"><p>License: <a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\">Creative Commons<\/a><br>\n<\/p><p><br \/>\n<\/p><\/div>"}
    • Unlike other banking careers, the commercial loan officer often works outside of the office, calling on potential businesses.
    • Loan officers help commercial clients through the loan application process.
    • In addition to gathering information, this process may include addressing potential lending problems.
    • Commercial loan officers who work for mortgage brokers may also process the loan.
    • A commercial loan officer is often paid on commission, usually 1/2 of 1 percent of the amount of the loan.
  2. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/b\/b2\/Become-a-Commercial-Loan-Officer-Step-2.jpg\/v4-460px-Become-a-Commercial-Loan-Officer-Step-2.jpg","bigUrl":"\/images\/thumb\/b\/b2\/Become-a-Commercial-Loan-Officer-Step-2.jpg\/aid1307240-v4-728px-Become-a-Commercial-Loan-Officer-Step-2.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"<div class=\"mw-parser-output\"><p>License: <a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\">Creative Commons<\/a><br>\n<\/p><p><br \/>\n<\/p><\/div>"}
    [1]
    Advertisement
  3. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/f\/f1\/Become-a-Commercial-Loan-Officer-Step-3.jpg\/v4-460px-Become-a-Commercial-Loan-Officer-Step-3.jpg","bigUrl":"\/images\/thumb\/f\/f1\/Become-a-Commercial-Loan-Officer-Step-3.jpg\/aid1307240-v4-728px-Become-a-Commercial-Loan-Officer-Step-3.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"<div class=\"mw-parser-output\"><p>License: <a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\">Creative Commons<\/a><br>\n<\/p><p><br \/>\n<\/p><\/div>"}
    • Useful skills include doing financial statements, business accounting and cash flow analysis.
  4. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/d\/dd\/Become-a-Commercial-Loan-Officer-Step-4.jpg\/v4-460px-Become-a-Commercial-Loan-Officer-Step-4.jpg","bigUrl":"\/images\/thumb\/d\/dd\/Become-a-Commercial-Loan-Officer-Step-4.jpg\/aid1307240-v4-728px-Become-a-Commercial-Loan-Officer-Step-4.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"<div class=\"mw-parser-output\"><p>License: <a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\">Creative Commons<\/a><br>\n<\/p><p><br \/>\n<\/p><\/div>"}
    [2]
    • Federal licensing requires 20 hours of education in lending, passing an examination and successfully undergoing a background check. [3]
    • Individual states may have additional licensing requirements for loan officers.
    • Loan officers must meet continuing education requirements to continue licensure.
  5. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/6\/63\/Become-a-Commercial-Loan-Officer-Step-5.jpg\/v4-460px-Become-a-Commercial-Loan-Officer-Step-5.jpg","bigUrl":"\/images\/thumb\/6\/63\/Become-a-Commercial-Loan-Officer-Step-5.jpg\/aid1307240-v4-728px-Become-a-Commercial-Loan-Officer-Step-5.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"<div class=\"mw-parser-output\"><p>License: <a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\">Creative Commons<\/a><br>\n<\/p><p><br \/>\n<\/p><\/div>"}
    • For example, the Bank Administration Institute of the American Bankers Association offers a Loan Review Certificate program.
    • Private business schools are another resource.
  6. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/5\/5d\/Become-a-Commercial-Loan-Officer-Step-6.jpg\/v4-460px-Become-a-Commercial-Loan-Officer-Step-6.jpg","bigUrl":"\/images\/thumb\/5\/5d\/Become-a-Commercial-Loan-Officer-Step-6.jpg\/aid1307240-v4-728px-Become-a-Commercial-Loan-Officer-Step-6.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"<div class=\"mw-parser-output\"><p>License: <a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\">Creative Commons<\/a><br>\n<\/p><p><br \/>\n<\/p><\/div>"}
  7. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/5\/5c\/Become-a-Commercial-Loan-Officer-Step-7.jpg\/v4-460px-Become-a-Commercial-Loan-Officer-Step-7.jpg","bigUrl":"\/images\/thumb\/5\/5c\/Become-a-Commercial-Loan-Officer-Step-7.jpg\/aid1307240-v4-728px-Become-a-Commercial-Loan-Officer-Step-7.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"<div class=\"mw-parser-output\"><p>License: <a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\">Creative Commons<\/a><br>\n<\/p><p><br \/>\n<\/p><\/div>"}
    [4]
    • Loan officers often have to attend social functions as a representative of the bank. This is a good way to make contacts with future clients.
  8. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/f\/f5\/Become-a-Commercial-Loan-Officer-Step-8.jpg\/v4-460px-Become-a-Commercial-Loan-Officer-Step-8.jpg","bigUrl":"\/images\/thumb\/f\/f5\/Become-a-Commercial-Loan-Officer-Step-8.jpg\/aid1307240-v4-728px-Become-a-Commercial-Loan-Officer-Step-8.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"<div class=\"mw-parser-output\"><p>License: <a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\">Creative Commons<\/a><br>\n<\/p><p><br \/>\n<\/p><\/div>"}
    • As loan officers often work in the field, they need to rely on laptops and cell phones to obtain current information and to maintain contact with their employer and potential clients.
  9. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/4\/42\/Become-a-Commercial-Loan-Officer-Step-9.jpg\/v4-460px-Become-a-Commercial-Loan-Officer-Step-9.jpg","bigUrl":"\/images\/thumb\/4\/42\/Become-a-Commercial-Loan-Officer-Step-9.jpg\/aid1307240-v4-728px-Become-a-Commercial-Loan-Officer-Step-9.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"<div class=\"mw-parser-output\"><p>License: <a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\">Creative Commons<\/a><br>\n<\/p><p><br \/>\n<\/p><\/div>"}
    • Commercial real estate agencies are also a good resource for the commercial loan officer.
  10. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/c\/c7\/Become-a-Commercial-Loan-Officer-Step-10.jpg\/v4-460px-Become-a-Commercial-Loan-Officer-Step-10.jpg","bigUrl":"\/images\/thumb\/c\/c7\/Become-a-Commercial-Loan-Officer-Step-10.jpg\/aid1307240-v4-728px-Become-a-Commercial-Loan-Officer-Step-10.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"<div class=\"mw-parser-output\"><p>License: <a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\">Creative Commons<\/a><br>\n<\/p><p><br \/>\n<\/p><\/div>"}
    • Be available to answer questions and help with the loan application.
  11. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/2\/27\/Become-a-Commercial-Loan-Officer-Step-11.jpg\/v4-460px-Become-a-Commercial-Loan-Officer-Step-11.jpg","bigUrl":"\/images\/thumb\/2\/27\/Become-a-Commercial-Loan-Officer-Step-11.jpg\/aid1307240-v4-728px-Become-a-Commercial-Loan-Officer-Step-11.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"<div class=\"mw-parser-output\"><p>License: <a target=\"_blank\" rel=\"nofollow noreferrer noopener\" class=\"external text\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/3.0\/\">Creative Commons<\/a><br>\n<\/p><p><br \/>\n<\/p><\/div>"}
    [5]
    • Verify application information.
    • Check a borrower's credit history with underwriting software, but understand that most commercial loans require additional financial information.
    • Consult with bank managers to determine whether a loan should be granted.
    12. Advertisement

Community Q&A

Search
Add New Question
  • Question
    If I do not have a bachelor's degree, Is it still possible to become a commercial loan originator? I live in San Antonio TX and am looking for commercial classes that may be held to obtain my license.
    Community Answer
    Since having a degree isn't a specific requirement of obtaining any licensing that may be associated with becoming a commercial loan originator, it would come down to the specific requirements of individual firms and brokers whether a degree would be a requirement for hiring.
    Thanks! We're glad this was helpful.
    Thank you for your feedback.
    If wikiHow has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission. Support wikiHow
    Yes No
    Not Helpful 0 Helpful 1
Ask a Question
200 characters left
Include your email address to get a message when this question is answered.
Submit
      Advertisement

      Video

      Tips

      • In the case of very large loans, you may need to work with multiple lenders to put together a loan package.
        Thanks
        Helpful 2 Not Helpful 2
      • If you are a one-person brokerage firm, you may have to function as a commercial loan officer and a broker.
        Thanks
        Helpful 1 Not Helpful 2
      Submit a Tip
      All tip submissions are carefully reviewed before being published
      Name
      Please provide your name and last initial
      Submit
      Thanks for submitting a tip for review!
      Advertisement

      Warnings


      Advertisement

      You Might Also Like

      How to
      Dress for a Banking Job
      How to
      Become an Agent of Western Union
      How to
      Become a Trader
      How to
      Become a Credit Repair Specialist
      How to
      Become an Independent Mortgage Broker
      How to
      Become a Bank Manager
      How to
      Get a Bank Job
      How to
      Find a Real Estate Broker to Work For
      Advertisement

      References

      1. ↑ https://www.bls.gov/ooh/business-and-financial/loan-officers.htm
      2. ↑ https://nationwidelicensingsystem.org/slr/resources/Pages/GettingStartedStateMLO.aspx
      3. ↑ https://capeschool.com/mlo/
      4. ↑ https://www.nutcache.com/blog/the-importance-of-collaboration-in-the-workplace/
      5. ↑ https://collegegrad.com/careers/loan-officers
      6. https://www.mtgprofessor.com/a%20-%20type%20of%20loan%20provider/lenders,_brokers_and_loan_officers.htm
      7. https://www1.salary.com/Commercial-Loan-Officer-I-Salary.html

      About This Article

      Thanks to all authors for creating a page that has been read 87,115 times.

      Reader Success Stories

      • Pragati Mehta

        May 25, 2017

        "Very clear steps. I really liked the article."
        Rated this article:
      Share your story

      Did this article help you?

      Advertisement