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Job Description of a Junior Loan Processor

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A junior loan processor deals with assessing the financial history of loan applicants and assessing whether applicants are eligible to obtain loans. She also explains to loan applicants the details of the loan and the various terms and conditions that apply to both parties--the loan applicant and the lending institution. A junior loan processor also helps put together loan packages tailored to fit the needs of loan applicants.


A junior loan processor requires an associate's degree or a Bachelor of Arts degree in a business-related field such as economics, accounting, business administration or banking. Electives or certificate courses in customer service, underwriting, credit counseling, fraud detection, processing terminology and basic appraisal principles are recommended. Having only a high school diploma occasionally suffices as some companies are willing to hire graduates straight out of high school.


A junior loan processor researches and verifies information about the loan applicant as required by the institutions he is working for. He also examines assets given as security and determines whether the assets are suitable. He scrutinizes how applicants intend to utilize the loan and assesses whether the utilization is viable. The junior loan processor also examines whether the loan applicant has the capacity to pay back the loan and ensures that the loan applicant has reliable streams of income. He comes up with a repayment schedule and calculates details of payments and interest rates. The junior loan processor then forwards the details of the loan to the loan committee, which either approves or disapproves the loan.

Key Competencies

It is important that the junior loan processor have excellent communication skills. This is because he will be communicating a lot of key information to clients. It is imperative for the loan processor to ensure that the client understands what his responsibilities and rights are. The junior loan processor should be competent in using the Internet, since most institutions are starting to receive and process online applications.

Desirable Skills

Having a pleasant personality and good socialization skills is a plus for a junior loan processor. She should also be goal-oriented and be able to close sales in time. She should be organized and self-disciplined to handle heavy workloads.


On average, junior loan processors earn a salary of $30,000, according to However, this varies according to institutions, location and level of experience. The more experienced the junior loan processor, the more companies will be willing to pay her. While some companies such as banks, credit institutions, mortgages and credit unions provide a monthly contract, others pay on an hourly basis.


Martin Muchira has been writing content for online businesses since 2008. He has written content for major companies like Air Asia and Comcast. Muchira graduated at the top of his class from Moi University with a Bachelor of Science in wood science and industrial processes.

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