Model Curriculum · 2018-03-06 · Loan Processing Officer 1 Loan Processing Officer CURRICULUM /...

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


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


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



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Sr. No.


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.


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


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


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


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.


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


Option 1: Total Duration Theory Duration 5:00 Practical Duration 15:00



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OPTION 2: Process Lease Finance

Sr. No.


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


Option 2: Total Duration Theory Duration 5:00 Practical Duration 15:00


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


9

Compulsory NOS


Assessment Outcomes


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


10

Compulsory NOS


Assessment Outcomes


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


11

Compulsory NOS


Assessment Outcomes


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


12

Compulsory NOS


Assessment Outcomes


Marks Out of Theory

Skills Practical

100 30 70

OPTIONS Option 1. Corporate loans processing


Assessment Outcome


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


13

OPTIONS Option 1. Corporate loans processing


Assessment Outcome


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


8 2 6

PC23. report to the concerned authority 2 1 1

100 30 70

OPTIONS Option 2. Processing lease finance


Assessment Outcome


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


14

OPTIONS Option 2. Processing lease finance


Assessment Outcome


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


8 2 6

PC19. report to the concerned authority 2 1 1

100 31 69

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