SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Calculate the repayment ability and assess the credit risk of potential clients 
SAQA US ID UNIT STANDARD TITLE
13419  Calculate the repayment ability and assess the credit risk of potential clients 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 3  NQF Level 03 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard is aimed at people who need the skills to evaluate loan applications in the micro finance context.

It provides the learner with techniques and understanding to assess potential clients to determine their repayment ability and credit risk in the context of micro-enterprise development.

The qualifying learner is capable of client assessment and calculating repayment ability as well as making loan recommendations.

Once a person has completed this unit standard, he/she will be able to:
  • Identify and apply appropriate criteria for calculating repayment ability and assessing credit risk.
  • Gather information to calculate repayment ability and assess credit risk of potential clients.
  • Verify client information to make an informed decision.
  • Determine the level of credit risk of potential clients.
  • Provide feedback on the assessment to the potential client. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    LEVEL 4 Unit Standard: `Conduct a financial analysis of a micro finance institution` 

    UNIT STANDARD RANGE 
  • All categories of micro-enterprise credit up to R50 000 will be included.
  • The unit standard applies in both rural and urban contexts in South Africa. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Identify and apply appropriate criteria for calculating repayment ability and assessing credit risk. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The elements of the loan cycle are explained in line with generally accepted industry practices. 

    ASSESSMENT CRITERION 2 
    2. The application and use of methodologies to calculate repayment ability are demonstrated in line with generally accepted industry practices and policies. 

    ASSESSMENT CRITERION 3 
    3. The criteria for service provision and the types of lending methodologies are explained as used by different organisations in the industry. 

    ASSESSMENT CRITERION 4 
    4. Objective criteria for calculating repayment ability and assessing credit risk are selected and applied in the specific socio-economic context and in line with organisational policies and practices. 

    SPECIFIC OUTCOME 2 
    Gather information to calculate repayment ability of potential clients. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Preferred information-gathering processes are explained as used by different organisations. 

    ASSESSMENT CRITERION 2 
    2. Analytical tools for data-gathering are selected and applied in line with organisational practices. 

    ASSESSMENT CRITERION 3 
    3. Data is interpreted in a manner which aids the ability of the organisation to calculate the repayment ability of the client. 

    ASSESSMENT CRITERION 4 
    4. The repayment ability of a specific client is calculated, presented and explained in line with organisational and industry practices. 

    SPECIFIC OUTCOME 3 
    Verify client information to make an informed decision and to assess credit risk. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The information provided by the client is checked for completeness in terms of the set loan application criteria. 

    ASSESSMENT CRITERION 2 
    2. The information provided by the client is checked for reliability by referring to creditors and credit information institutions. 

    ASSESSMENT CRITERION 3 
    3. A risk rating is assigned to the client on the basis of a given risk rating system. 

    ASSESSMENT CRITERION 4 
    4. The risk rating is motivated in a written report using the loan application criteria, information collected from creditors and credit institutions and the risk rating system. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    1. An individual wishing to be assessed (including through RPL) against this unit standard may apply to an assessment agency, assessor or provider institution accredited by the relevant ETQA.
    2. Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.
    3. Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA.
    4. Moderation of assessment will be conducted by the relevant ETQA at its discretion. 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    The learner can:
  • Understand the loan cycle
  • Understand risk analysis issues in micro-enterprise development
  • Understand repayment issues in micro finance 


  • Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identify and solve problems using critical and creative thinking:
  • Evaluate information and make decisions. 

  • UNIT STANDARD CCFO COLLECTING 
    Collect, analyse, organise and critically evaluate information:
  • Assess information gathered and draw conclusions. 

  • UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively using visual, mathematical and language skills, both verbally and in writing:
  • Use various methods in communicating information to clients. 

  • UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrate an understanding of the world as a set of related systems:
  • Understand the relationships between the specific socio-economic context, the risk analysis on which decisions are based. 

  • REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  23453   National Certificate: Micro Finance  Level 3  NQF Level 03  Reregistered  2023-06-30  BANKSETA 
    Elective  48764   National Certificate: Wholesale and Retail Sales Practice  Level 3  NQF Level 03  Passed the End Date -
    Status was "Reregistered" 
    2008-10-22  Was W&RSETA until Last Date for Achievement 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. AG Tax Office (PTY) LTD 
    2. Amandla Obunye Training Academy 
    3. Azania Currency and Equity Markets 
    4. Chartall Business College 
    5. Compuscan Academy 
    6. Edutel Wholesale & Retail Academy 
    7. Felix Risk Training Consultants 
    8. Firstrand Bank - Benmore 
    9. Flock Management Services 
    10. ILUBALETHU PROJECTS 
    11. Nedbank Ltd 
    12. Octopus Training Solutions 
    13. Owl Business Training PTY LTD 
    14. RUDO CONSULTING cc 
    15. UCS Education and Training Services (Pty) Ltd 
    16. Vhutshavhelo Development Forum 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.