Loan counselors help consumers with low income or a poor credit history qualify for credit, usually a home mortgage. Loan officers usually specialize in commercial, consumer, or mortgage loans. Commercial or business loans help companies pay for new equipment or to expand operations. Consumer loans include home equity, automobile, and personal loans. Mortgage loans are made to purchase real estate or to refinance an existing mortgage.
Loan officers represent lending institutions that provide funds for a variety of purposes.
Personal loans can be made to consolidate bills, purchase expensive items such as an automobile or furniture, or finance a college education. Loan officers attempt to lower their firm's risk by receiving collateral-security pledged for the payment of a loan. For example, when lending money for a college education, the bank may insist that the borrower offer his or her home as collateral. If the borrower were ever unable to repay the loan, the borrower would have to sell the home to raise the necessary money. Loans backed by collateral also are beneficial to the customer because they generally carry a lower interest rate.