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Loan Processing Officer 1
Model Curriculum
Loan Processing Officer
(Corporate Loans and Lease Deals Processing)
SECTOR: SUB-SECTOR: OCCUPATION:
REF ID:
NSQF LEVEL:
BFSI LENDING RETAIL ASSET MANAGEMENT CENTRE/ CENTRAL PROCESSING UNIT BSC/Q2304, Version No. 1.0 5
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TABLE OF CONTENTS
1. Curriculum 01
2. Trainer Prerequisites 04
3. Annexure: Assessment Criteria 05
Loan Processing Officer 1
Loan Processing Officer CURRICULUM / SYLLABUS
This program is aimed at training candidates for the job of a “Loan Processing Officer”, in the “BFSI” Sector/Industry and aims at building the following key competencies amongst the learner
Program Name Loan Processing Officer
Qualification Pack Name & Reference ID. ID
BSC/Q2304
Version No. 1.0 Version Update Date 05-03-2018
Pre-requisites to Training
STD. XII
Training Outcomes After completing this programme, participants will be able to:
Evaluate, authorize, or recommend processing of loan applications for people and businesses.
Compile the loan application file, perform preliminary checks, approve loans and submit recommendations for loans beyond their limits for further processing.
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This course encompasses 5 out of 5 Compulsory Nos (National Occupational Standards), 2 out of 2
Optional Nos of “Loan Processing Officer” Qualification Pack issued by “BFSI Sector Skill Council of
India”.
Compulsory Nos
Sr. No.
Module Key Learning Outcomes Equipment Required
1 Introduction to Banking & Lending Products Theory Duration 30:00 Corresponding NOS Code BSC / N2311
Understand banking and importance of banks
Understand the role of RBI in banking
Learn about different products and services offered by banks
Know the 5C model of lending
Learn in detail the lending products offered by banks
Understand each type of loan, its nature, features, purpose of the loan etc.
White board, Marker, Overhead projector, Laptop, Internet access, Game card (snake & ladder)
2 KYC Norms and Loan Documentation Theory Duration 20:00 Practical Duration 10:00 Corresponding NOS Code BSC / N2311
List the KYC requirements for different types of loans and different types of customers
Understand the documentation process for loan approval
Understand the steps in processing the loan
Know the Anti money laundering and provisions of PMLA, 2002
White board, Marker, Overhead projector, Laptop, Internet access, Game card (snake & ladder)
3 Credit Analysis and Risk Management Theory Duration 30:00 Practical Duration 20:00 Corresponding NOS Code BSC / N2312
Learn about credit analysis, CIBIL, CIBIL score, Credit Ratings etc.
Know the importance of credit ratings and CIBIL score and how to interpret it
Understand the different types of risk and how to manage risk
Learn the different mechanism to mitigate risk
White board, Marker, Overhead projector, Laptop, Internet access, Game card (snake & ladder)
4 Verification and Process of Loan Application Theory Duration 10:00 Practical Duration 30:00
Learn how to check the loan application form and the supporting documents
Check whether customers details are correctly captured
Check the documents pertaining to collaterals are properly documented
Check on the financial statements or ITR returns or salary slips submitted to avail the loan
White board, Marker, Overhead projector, Laptop, Internet access, Game card (snake & ladder)
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Sr. No.
Module Key Learning Outcomes Equipment Required
Corresponding NOS Code BSC / N2311
Understand whether customer has the capacity and willingness to repay the loan
5 Preparation of Credit Memorandum Theory Duration 10:00 Practical Duration 30:00
Corresponding NOS Code BSC / N2312
Understand the process required for preparing the memorandum to individual or entity respectively
Learn to update the basic details about the entity asking for loan
Learn to fill the purpose of the memorandum and the project for which loan is applied
Learn to analyze the various aspects of the individuals with respect to their salary, occupation, capacity, etc.
White board, Marker, Overhead projector, Laptop, Internet access, Game card (snake & ladder)
6 Communicate effectively and achieve customer satisfaction Practical Duration (20:00) Corresponding NOS Code BSC/ N9902
Learn to communicate and listen to the customers, superiors and colleagues
Learn to maintain: positive attitude, correct body language, dress code, gestures and etiquette
Understand work output requirements, targets, performance indicators and incentives and receive feedback on work performance with positive attitude
White board, Marker, Overhead projector, Laptop, Internet access, Game card (snake & ladder)
7 Maintain integrity and ethics Practical Duration (30:00) Corresponding NOS Code BSC/ N9903
Learn how to maintain integrity of transactions and ensure data security
Learn to protect data and information related to business or commercial decisions
Demonstrate and practice ethics in day-to-day processes and dealings with customers and colleagues
Learn how to avoid defaming products and services of companies in competition
Learn to refrain from indulging in unfair trade and/or corrupt practices
White board, Marker, Overhead projector, Laptop, Internet access, Game card (snake & ladder)
8 Focus on Team Work Practical Duration (10:00) Corresponding NOS Code BSC/ N9904
Learn to share relevant inputs, feedback and insights to build mutual trust
Learn to exchange, defend and rethink ideas
Support team members to accomplish goals
White board, Marker, Overhead projector, Laptop, Internet access, Game card (snake & ladder)
Compulsory NOS: Total Duration Theory Duration 100:00 Practical Duration 150:00
Unique Equipment Required: NA
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OPTIONS (Optional to choose any or all or none) OPTION 1: Process Corporate Loans
Sr. No.
Module Key Learning Outcomes Equipment Required
1 Process Corporate Loans Theory Duration 5:00 Practical Duration 15:00 Corresponding NOS Code BSC / N1913
List down the required documents to be obtained from borrower
Learn to evaluate the financial history and income of the borrower
Learn to analyse the existing debt and purpose of the loan
Understand and review the credit history and available collateral of the borrower
Learn to evaluate the sanction limit based on the documents analysed
List down the terms of loan, total amount to be financed, type of collateral
applied, terms of repayment, etc., in the letter of intent
Ensure that the entire documentation is complete and submitted for loan approval
Learn to provide the loan in form of a draft, electronic wire transfer to the borrower’s bank account or cashier’s check
White board, Marker, Overhead projector, Laptop, Internet access, Game card (snake & ladder)
Option 1: Total Duration Theory Duration 5:00 Practical Duration 15:00
Unique Equipment Required: NA
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OPTION 2: Process Lease Finance
Sr. No.
Module Key Learning Outcomes Equipment Required
1 Process lease finance Theory Duration 5:00 Practical Duration 15:00 Corresponding NOS Code BSC/ N2514
Obtain customer’s / lessees specific needs such as type of capital asset, brand, make, vintage, colour, quantity, periodicity of repayments, etc.
List down the required documents and inform the same to lessee
Gather financial statements or corporate entity or income documents of individuals as per company’s SOP
Evaluate the CIBIL score, financial history or income of the lessee
Learn to analyse the risk return of the lease deal
Understand the repayment capacity of lessee
Learn to prepare the lease budget for the proposed deal
White board, Marker, Overhead projector, Laptop, Internet access, Game card (snake & ladder)
Option 2: Total Duration Theory Duration 5:00 Practical Duration 15:00
Unique Equipment Required: NA
GRAND Total Duration Minimum Duration for the QP= __250_hrs_ Theory: 100 hrs Practical: 150 hrs Maximum Duration for the QP= 290 hrs Theory:__110 hrs Practical:_180 hrs__
Unique Equipment Required for the QP: Laptop, white board, marker, projector, first aid kit
(This syllabus/ curriculum has been approved by BFSI Sector Skill Council of India)
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Trainer Prerequisites for Job role: “Loan Processing Officer” mapped to Qualification Pack: “BSCQ/2304” Sr. No.
Area Details
1 Description To deliver accredited training service, mapping to the curriculum detailed above, in accordance with the Qualification Pack “BSC / Q 2304”.
2 Personal Attributes
The job requires the individual to be able to: work under high pressure and on computer for long hours, be outcome focussed and have eye for detail, good interpersonal abilities, and self-motivation.
3 Minimum Educational Qualifications
STD. XII
4a Domain Certification
Certified for Job Role: “Loan Processing Officer” mapped to QP: “BSC Q/2304”. Minimum accepted score as per SSC guideline is 70%.
4b Platform Certification
Recommended that the Trainer is certified for the Job Role: “Trainer”, mapped to the Qualification Pack: “MEP/Q0102”. Minimum accepted score as per SSC guideline is 80%.
5 Experience • Minimum 3 years’ experience as a trainer in the BFSI domain • Minimum 2 years’ experience as a trainer of Loan Processing
subjects Experience in Loan Processing Officer services a plus
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Guidelines for Assessment 1. Criteria for assessment for each Qualification Pack will be created by the Sector Skill Council. Each Performance Criteria (PC) will be assigned marks proportional to its importance in NOS. SSC will also lay down proportion of marks for Theory and Skills Practical for each PC. 2. The assessment for the theory part will be based on knowledge bank of questions created by the SSC. 3. Assessment will be conducted for all compulsory NOS, and where applicable, on the selected elective/option NOS/set of NOS. 4. Individual assessment agencies will create unique question papers for theory part for each candidate at each examination/training centre (as per assessment criteria below). 5. Individual assessment agencies will create unique evaluations for skill practical for every student at each examination/training centre based on this criterion. 6. To pass the Qualification Pack, every trainee should score a minimum of 70% of aggregate marks to successfully clear the assessment. 7. In case of unsuccessful completion, the trainee may seek reassessment on the Qualification Pack.
ANNEXURE: ASSESSMENT CRITERIA
Assessment Criteria
Job Role Loan Processing Officer
Qualification Pack BSCQ/2304
Sector Skill Council BFSI
Compulsory NOS
Total Marks: 500 Marks Allocation
Assessment Outcomes
Assessment Criteria for Outcomes Total
Marks Out of Theory
Skills Practical
BSC/N2311 Verify and forward loan applications
PC1. verify the conduct of customer’s account in case of old customers
100
6 2 4
PC2. verify details of the customer with the referring colleague
6 2 4
PC3. check customer details such as name, age, income, purpose of loan, amount requested, etc., in the form
5 1 4
PC4. ensure that the customers’ queries are politely addressed
2 1 1
PC5. ensure that the appropriate loan application form is filled
8 2 6
PC6. check whether all supporting documents and KYC proofs are attached with application
8 2 6
PC7. ensure all details are correctly entered in the form
8 2 6
PC8. ensure the required financial statements or IT Returns or Salary Slips are attached
5 2 3
PC9. ensure the validity of the statements mentioned in the documents by taking appropriate measures, e.g., collecting title deed for the land as mentioned in the form, etc.
8 2 6
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Compulsory NOS
Total Marks: 500 Marks Allocation
Assessment Outcomes
Assessment Criteria for Outcomes Total
Marks Out of Theory
Skills Practical
PC10. take customer signatures at all required places 2 1 1
PC11. ensure that a clear photograph of customer is attached to the form
2 1 1
PC12. conduct any other due-diligence as recommended by senior officer
5 1 4
PC13. ensure that all customer details are correctly captured in the form
8 2 6
PC14. ensure that the customer has a capacity to repay 6 2 4
PC15. ensure that the details pertaining to collateral are being properly documented
6 2 4
PC16. check the CIBIL score for retail borrower or calculate 8 2 6
PC17. forward the application for sanction, if the customer seems to qualify the basic requirements
2 1 1
PC18. maintain a record of customer applications 5 2 3
100 30 70
BSC/N2312 Prepare credit memorandum
PC1. gather the basic details about the entity
100
2 1 1
PC2. be aware of the credit limits and other terms and conditions of the company
3 1 2
PC3. coordinate with the concerned person to acquire any additional information if required
2 1 1
PC4. understand the process required for preparing the memorandum to individual or entity respectively
4 1 3
PC5. sort the information in hand into quantitative and qualitative facts such as company details, financials, etc. , plan and organize the sorted information based on the format of the memorandum
4 1 3
PC6. update the basic details about the entity asking for loan i.e name of the entity, group name, and management of the company such as owners and managing directors; activity the entity is engaged in, products and services the entity is dealing with, address, location, contact details etc.
6 1 5
PC7. fill the purpose of the memorandum and the project for which loan is applied
2 1 1
PC8. mention the reference details of the credit department and loan officer
2 1 1
PC9. generate the proposal number for the credit memorandum
2 1 1
PC10. highlight the credit ratings of the proposal and the sanction limit
4 1 3
PC11. mention data points on the existing bankers of the entity
3 1 2
PC12. provide analysis on the business model of the entity
4 1 3
PC13. provide analysis on the industry trend 4 1 3
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Compulsory NOS
Total Marks: 500 Marks Allocation
Assessment Outcomes
Assessment Criteria for Outcomes Total
Marks Out of Theory
Skills Practical
PC14. highlight the management discussion with the entity , explain the competition scenario in the industry for the entity, analyse the financial performance of the entity providing ratio and other statistical analysis, earnings, profitability, leverage, cost structure, etc.
8 1 7
PC15. mention the future plans of the company its new project and expansion plans
3 1 2
PC16. update the financial projection and working capital projection of the new project, stock based assessment, project based assessment, cash flow comfort and other aspects related to the entity’s financial projection on the new project
3 1 2
PC17. mention the current financial requirement of the entity
3 1 2
PC18. provide a recommendation to the analysis mentioning the various factors on whether the loan can be given or not, how much to sanction, etc.
3 1 2
PC19. provide the various terms and conditions of the sanction and mention the limit structure
3 1 2
PC20. provide the application forms 2 1 1
PC21. analyse the various aspects of the individuals with respect to their salary, occupation, capacity, etc.
4 1 3
PC22. generate the scorecard based on the application form filled by the individuals
4 1 3
PC23. prepare the memorandum based on the score card of the application
4 1 3
PC24. mention the basic details about the individual such as his name, address, occupation and earnings, purpose of the memorandum, etc.
3 1 2
PC25. update the proposal number, sanction limit, etc. 3 1 2
PC26. provide the financial analysis of the individual based on his/her occupation analysis
3 1 2
PC27. prepare recommendation based on the financial analysis and the scorecard mentioning the sanction limit and the structure of sanction
3 1 2
PC28. comply to the turnaround time 3 1 2
PC29. follow the required conduct, terms and conditions related to the process
3 1 2
PC30. report to the concerned authority in case of any deviations
3 1 2
100 30 70
BSC/N9902 Communicate effectively and achieve customer satisfaction
PC1. listen attentively and paraphrase effectively in order to understand precise requirements of customer, superior or colleague 100
9 1 8
PC2. be sensitive to: language, gender, cultural and social differences in addressing customers, superiors and
9 1 8
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Compulsory NOS
Total Marks: 500 Marks Allocation
Assessment Outcomes
Assessment Criteria for Outcomes Total
Marks Out of Theory
Skills Practical
colleagues
PC3. maintain: positive attitude, correct body language, dress code, gestures and etiquette
9 3 6
PC4. understand work output requirements, targets, performance indicators and incentives and receive feedback on work performance with positive attitude
9 4 5
PC5.cooperate, coordinate, and collaborate to achieve shared goals
9 3 6
PC6. organize regular feedback collection as per company’s SOP
9 3 6
PC7. address problems by educating, eliminating or escalating
9 3 6
PC8. aim to gain customer loyalty and satisfaction 9 3 6
PC9. ensure clarity, honesty and transparency in dealing with the clients
9 3 6
PC10. avoid mis-selling and misinforming 10 3 7
PC11. focus on enhancing brand value of company through superior customer service
9 3 6
100 30 70
BSC/N9903 Maintain integrity and ethics
PC1. refrain from indulging in unfair trade and/or corrupt practices
100
11 2 9
PC2. maintain records meticulously as per company’s policy, follow prescribed rules and regulations and ensure transparent dealings
11 4 7
PC3. avoid using company’s funds, property or resources for undertaking personal activities
11 2 9
PC4. protect customer’s information and avoid IP infringement
11 4 7
PC5. protect data and information related to business or commercial decisions
11 4 7
PC6. avoid misrepresentation or misinformation 10 4 6
PC7. demonstrate and practice ethics in day-to-day processes and dealings with customers and colleagues
13 3 10
PC8. avoid defaming products and services of companies in competition
12 4 8
PC9. consult supervisor or senior management when in situations that may require differentiating between ethical and unethical
10 3 7
100 30 70
BSC/N9904 Focus on teamwork
PC1. share relevant inputs, feedback and insights to build mutual trust
100
20 5 15
PC2. exchange, defend and rethink ideas 20 5 15
PC3. support team members to accomplish goals 30 10 20
PC4. facilitate group decision making and deal productively with conflict
30 10 20
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Compulsory NOS
Total Marks: 500 Marks Allocation
Assessment Outcomes
Assessment Criteria for Outcomes Total
Marks Out of Theory
Skills Practical
100 30 70
OPTIONS Option 1. Corporate loans processing
Total Marks: 100 Marks Allocation
Assessment Outcome
Assessment Criteria for Outcomes Total
Marks Out of Theory
Skills Practical
BSC/N1913 Process corporate loans
PC1. ensure to obtain the required documents from the borrower such as self- attested copy of KYC documents, incorporation certificate, PAN card, address proof, latest bank statements, etc.
100
2 1 1
PC2. gather the required financial details about the entity, required for processing corporate loan
3 1 2
PC3. evaluate the financial history and income of the borrower
8 2 6
PC4. analyse the existing debt of the entity 7 2 5
PC5. assess the purpose of the loan 7 2 5
PC6. provide the entity with the loan application form 1 1 0
PC7. explain the mandatory details and documents to be provided by the entities
2 1 1
PC8. check the background information of the business and their future business plans including projected earnings and profit
3 1 2
PC9. review the credit history, available collateral and income of the borrower
8 2 6
PC10. evaluate the sanction limit based on the documents analysed
8 2 6
PC11. decide whether to take forward the application to sanctioning officer
7 1 6
PC12. ensure the paperwork analysis of the supporting documents is complete
3 1 2
PC13. send the application and supporting documents analysis for consideration and approval
2 1 1
PC14. forward the loan application to a loan underwriter or loan committee
2 1 1
PC15. provide a letter of intent for approval and signature of the concerned authority
3 1 2
PC16. mention the terms of loan, total amount to be financed, type of collateral applied, terms of repayment, etc. in the letter of intent
8 2 6
PC17. ensure the parties involved in loan processing have agreed to the terms and conditions
3 1 2
PC18. submit the entire documentation to the loan 3 1 2
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OPTIONS Option 1. Corporate loans processing
Total Marks: 100 Marks Allocation
Assessment Outcome
Assessment Criteria for Outcomes Total
Marks Out of Theory
Skills Practical
committee for loan approval
PC19. obtain the signature of the borrower on the finalized loan documents if the loan is approved
1 1 0
PC20. provide the loan in form of a draft, electronic wire transfer to the borrower’s bank account or cashier’s check
2 1 1
PC21. ensure to complete the target number of loan applications a day
7 1 6
PC22. follow the required conduct, terms and conditions related to the process
8 2 6
PC23. report to the concerned authority 2 1 1
100 30 70
OPTIONS Option 2. Processing lease finance
Total Marks: 100 Marks Allocation
Assessment Outcome
Assessment Criteria for Outcomes Total
Marks Out of Theory
Skills Practical
BSC/N2514 Process lease finance
PC1. obtain customer’s / lessee’s specific needs such as type of capital asset, brand, make, vintage, colour, quantity, periodicity of repayments, etc.
100
6 2 4
PC2. seek information on purpose of and duration of lease and intended mode of periodic repayments
5 1 4
PC3. inform about the required documents of the lessee such as self- attested copy of KYC-support documents, incorporation certificate for corporate entities, PAN card, address proof, latest bank statements, etc.
4 1 3
PC4. gather financial statements or corporate entity or income documents of individuals as per company’s SOP
4 2 2
PC5. collect individual lessee’s company documents and approvals as necessary
5 2 3
PC6. evaluate the financial history or income of the lessee
6 2 4
PC7. check CIBIL score of lessee 5 1 4
PC8. analyse risk-return of the lease deal 6 2 4
PC9. estimate operating costs, e.g., maintenance, insurance, breakdown repairs, other service and administrative costs as per SOP
6 2 4
PC10. assess the repayment capacity of lessee against needs list
5 2 3
PC11. prepare lease budget for the proposed deal 8 2 6
PC12. ensure to obtain duly filled form(s) as per company’s requirements
5 2 3
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OPTIONS Option 2. Processing lease finance
Total Marks: 100 Marks Allocation
Assessment Outcome
Assessment Criteria for Outcomes Total
Marks Out of Theory
Skills Practical
PC13. ensure the paperwork of the supporting documents is complete
5 1 4
PC14. send the application and supporting documents analysis for approval
2 1 1
PC15. on approval, draw up the contract as per SOP including terms
8 2 6
PC16. send the contract for approval to senior 2 1 1
PC17. ensure to process the target number of leasing applications a day
8 2 6
PC18. follow the required conduct, terms and conditions related to the process
8 2 6
PC19. report to the concerned authority 2 1 1
100 31 69