Unit of competency Outline

Date retreived
22/07/2026 1:59 PM AWST

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Assess credit applications

Assess credit applications

Unit of competency
National Code
FNSCRD401A
State Code
D4083
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
24/11/2010
View on TGA
State Implementation and Classification
Approved Date
29/07/2014
Field of Education
081101 - Banking And Finance
Original Release Date
29/07/2014
Nominal Hours
20
Description
This unit describes the performance outcomes, skills and knowledge required to assess and verify information provided in credit applications, establish credit terms and limits, and notify customers of credit application outcomes.This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so Commonwealth, State or Territory requirements should be confirmed with the relevant body.
Notes
Elements and Performance Criteria
1. Satisfy initial enquiry
  • 1.1. Customer initial enquiries on the type, range and availability of credit are responded to and information provided in ways which show courtesy and respect for and recognise the special needs of the customer
  • 1.2. Basic information such as terms and conditions and interest rate are advised and potential securitisation needs determined in accordance with credit policy and legislative requirements
2. Assess and monitor credit information
  • 2.1. Credit applications and documentation are verified in accordance with organisation policy and procedures to maintain accuracy of credit database information
  • 2.2. Credit information is analysed to establish that sufficient evidence of accurate information has been provided
  • 2.3. Processing of applications is completed in accordance with organisation risk policy and timelines
  • 2.4. Continuing liaison with debtor and relevant internal and external personnel is maintained to ensure information is kept up to date and disseminated appropriately
3. Assess the risk
  • 3.1. Applicant's financial circumstances are identified in order determine the level of risk associated with the application
  • 3.2. Possible risks associated with the application or applicant are identified and evaluated in order to minimise or protect against risk
  • 3.3. The need to take security to minimise risk exposure is identified in accordance with organisation credit policies
  • 3.4. Assessment is documented in accordance with organisation procedures
4. Establish credit terms and limits
  • 4.1. Credit decision is made based on assessed information and in accordance with organisation risk management policy
  • 4.2. Credit terms and limits are determined within organisation credit policy guidelines and current criteria for risk management objectives and customer is advised of the credit decision promptly and courteously
  • 4.3. Credit account administration is completed according to organisation credit policy and timelines and legislative requirements
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Special needs of the customer may include needs related to:
age
cultural background
comprehension
disability
the language.
Credit policy includes reference to:
compliance
national Consumer Credit Code requirements
income
satisfactory credit history
security requirements.
Organisation policy and procedures may cover:
accepting and rejecting credit applications
gathering information and its evaluation
legal obligations and framework
liaison, information dissemination and marketing to internal and external parties
maintenance of customer account files
organisation procedures, practices and securitisation
overall organisation goals and objectives
reviewing and adjusting credit limits for established customers
setting credit limits or credit lines for applications
trading terms and credit limits.
Credit database information may include:
account records
agency reports
credit management records
judgements
master client list
trade overseas information
trade reference information.
Credit information may include:
changes in organisation charges
creditworthiness
director or shareholder changes
economic conditions including interest rates
entity details, addresses and locations
financial information such as:
cheque accounts
credit agreements
budget accounts
add-on accounts
lending authorities, personal loans and mortgages
marketing patterns in the economy
payment patterns
purchasing patterns
remittance details
letters of credit
promissory notes
bills of sale
purchase orders
trading entities and variations.
Security may include:
application may be for an unsecured or secured loan
goods mortgage
real property mortgage
third party security:
co-borrower
guarantor
Personal Property Securities Act requirements.
Legislative requirements may include:
Australian Securities and Investments Commission (ASIC) Act
Bankruptcy Act
Bills of Sale and Other Instruments Act
Cheques and Payment Orders Act
contract law
Corporations Act
Door to Door Sales Act or equivalent
Evidence Reproduction Act or equivalent
Fair Trading Act
Magistrate's Court Act
National Consumer Credit Protection Act
partnership Acts
Personal Property Securities Act
Privacy Act
Small Debts Court Act or equivalent
Trade Practices Act.
EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
thoroughly and accurately check application details
interpret and apply appropriate legislation
implement organisation credit policy
efficiently use data entry and recording systems.

Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to organisation financial records.

Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
verbal or written questioning on underpinning knowledge and skills
evaluating samples of work
accessing and validating third party reports.

Guidance information for assessment
Replaces
State Code National Code Title Type
C9656 FNSCRDT401B Evaluate credit applications Unit of competency
Replaced By
State Code National Code Title Type
AUQ65 FNSCRD401 Assess credit applications Unit of competency