This unit may be applied within lending organisations of any size or location.

ELEMENT

PERFORMANCE CRITERIA

1. Check and verify application details

1.1. Information required to support application is gathered in accordance with credit policy and information recorded using correct organisation policies and procedures

1.2. Information provided by applicant and obtained from other sources is verified for accuracy and compliance with relevant legislative requirements and organisational requirements

2. Submit assessment and decision

2.1. The decision to reject or accept an application is formed on the basis of total credit assessment conducted and credit policy

2.2. Decisions to advance funds or extend credit that fall outside the officer's approval or limits of authority are referred to relevant approving personnel

2.3. Recommendations to accept or reject applications to provide credit or advance funds and any required security are prepared and forwarded to relevant personnel promptly and in accordance with organisation procedures

3. Maintain application records and complete necessary documentation

3.1. Records system is kept up to date and maintained according to legislative requirements and timeframes and organisation policy and procedures

3.2. File and record movements are monitored and recorded

3.3. Documentation is produced accurately, clearly and concisely, in accordance with industry, organisation and legislative requirements and timeframes

Required skills

communication skills to:

determine and confirm credit applicant requirements, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

numeracy skills to:

accurately analyse, record and store lending application data in accordance with organisational requirements

calculate term of loan, repayments and interest

literacy skills to read and interpret documentation from a variety of sources and recording, gathering and consolidating credit application information

IT skills for accessing and using appropriate software such as spreadsheets and databases and internet information

written communication skills necessary to complete credit application records

organisational skills, including the ability to plan and sequence work

Required knowledge

credit products their features and requirements for application

organisational policies and procedures in regard to customer service and techniques

relevant credit legislation and statutory requirements, including:

National Consumer Credit Protection Act

Personal Property Securities Act

Privacy Act

relevant industry codes of practice

security checking procedures

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 check to ensure that application details are accurate

apply knowledge of relevant legislation

interpret and comply with credit policy in accordance with the national Consumer Credit Code

use relevant data entry, office equipment and software.

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 credit product information

access to a relevant software system and data

access to organisation policies and procedures.

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

observing processes and procedures in workplaces or role plays

verbal or written questioning on underpinning knowledge and skills

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

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.

Information can be obtained via:

face-to-face interview at:

lender's office

applicant's home

worksite

off-site

facsimile

internet

mail

teleconference

telephone interview.

Relevant legislative requirements may include:

Australian Securities and Investments Commission (ASIC) Act

Cheques and Payment Orders Act

Electronic Funds Transfer (EFT) Code of Conduct

Financial Institutions (FI) Code

Financial Transaction Reports Act

National Consumer Credit Protection Act

Personal Property Securities Act.

Privacy Act

Prudential requirements

secrecy laws.

Credit assessment may be made by:

designated approval staff

the interviewer

a central lending unit.

Credit policy includes reference to:

compliance

national Consumer Credit Protection Acts requirements

satisfactory credit history

security requirements.

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.

Organisation policy and procedures may include information in regard to:

administrative and clerical systems

coding systems

lender requiring or not requiring mortgage indemnity insurance

product and account and service range

range of responsibility.

Documentation may include:

approval of offer documents

disclosure and associated documents

loan schedule

security documents.

Unit sector

Credit management

This unit contains employability skills.