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: 

Identify credit risks when preparing and recommending new proposals in a banking environment 
SAQA US ID UNIT STANDARD TITLE
7226  Identify credit risks when preparing and recommending new proposals in a banking environment 
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 4  NQF Level 04  25 
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 intended for people who will be required to apply the principles and processes relating to the granting or declining of credit when assessing credit applications. Persons credited with this unit standard will be able to apply the principles and processes when formulating new business proposals, identify credit risks, establish a credit relationship with a customer, assess and recommend the proposal for a credit decision and perform administrative duties. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
Persons attempting this unit standard should have a credit background as well as a basic understanding of risk management. 

UNIT STANDARD OUTCOME HEADER 
Apply lending principles and processes when formul 

Specific Outcomes and Assessment Criteria: 

SPECIFIC OUTCOME 1 
Apply lending principles and processes when formulating new business proposals. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The principles and products relating to the granting of credit are understood and explained 

ASSESSMENT CRITERION 2 
2. The basic conditions of credit granting as per the Usury Act are known and applied. 

ASSESSMENT CRITERION 3 
3. The risks resulting from bad lending are known and explained as per company specific requirements. 
ASSESSMENT CRITERION RANGE 
Bad lending includes but is not limited to credit grants, non-qualifying clients, and high-risk clients.
 

ASSESSMENT CRITERION 4 
4. The principles used to evaluate the client is known and understood as per company specific requirements. 

SPECIFIC OUTCOME 2 
Identify credit risks relating to new business proposals. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. The purpose of the credit application is appropriately assessed to identify possible risks as per credit policy and company specific requirements. 

ASSESSMENT CRITERION 2 
2. Financial and business information is analysed and interpreted to determine possible credit risks. 
ASSESSMENT CRITERION RANGE 
Financial and business information includes but is not limited to credit listings, judgements.
 

ASSESSMENT CRITERION 3 
3. The ability and willingness of the borrower to repay are analysed to identify possible risks according to the credit policy and company specific requirements. 

ASSESSMENT CRITERION 4 
4. All applicants with flagged information are followed up as per company specific requirements. 
ASSESSMENT CRITERION RANGE 
Flagged information includes but is not limited to teller alert, legal collections.
 

SPECIFIC OUTCOME 3 
Establish credit relationship with customer. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. An interview is conducted to establish the customer's needs as per company specific requirements. 

ASSESSMENT CRITERION 2 
2. Accurate and relevant information is obtained from the customer. 

ASSESSMENT CRITERION 3 
3. All supporting documentation is identified and received as per product and company specific requirements. 

ASSESSMENT CRITERION 4 
4. Documents are correctly completed as per product and credit policy requirements. 

ASSESSMENT CRITERION 5 
5. Proof of various credit checks are obtained as per company specific requirements. 

ASSESSMENT CRITERION 6 
6. Documentation is handed to the appropriate levels of authority for credit approval and account status. 

ASSESSMENT CRITERION 7 
7. Non-qualifying customers are identified and action taken as per company specific requirements. 

SPECIFIC OUTCOME 4 
Assess and recommend proposal for credit decision. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. Customer information and documents are identified as per company specific requirements. 

ASSESSMENT CRITERION 2 
2. Customer information is assessed according to statutory requirements. 
ASSESSMENT CRITERION RANGE 
Statutory requirements include but are not limited to the procedures laid down in the Credit Policy, Usury Act, and Credit Agreement Act.
 

ASSESSMENT CRITERION 3 
3. Basic knowledge on formatting of information is applied as per company specific requirements. 
ASSESSMENT CRITERION RANGE 
Formatting of information includes but is not limited to the five-point plan, SWOT analysis.
 

ASSESSMENT CRITERION 4 
4. Documents are forwarded to the relevant authority for credit decision as per company specific requirements. 

ASSESSMENT CRITERION 5 
5. Conditions for approval are communicated to the customer for decision as per company specific requirements. 

ASSESSMENT CRITERION 6 
6. Contracts are drawn up on customer acceptance of the conditions as per company specific requirements. 

SPECIFIC OUTCOME 5 
Perform administrative duties. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1. Action is taken on all communication received relating to documentation as per company specific requirements. 

ASSESSMENT CRITERION 2 
2. Documentation is finalised as per company specific requirements. 
ASSESSMENT CRITERION RANGE 
Finalised included but is not limited to checks performed on attachments, security documents.
 

ASSESSMENT CRITERION 3 
3. Reports are submitted promptly as per company specific requirements. 

ASSESSMENT CRITERION 4 
4. Reports are checked and actioned as per company specific requirements. 
ASSESSMENT CRITERION RANGE 
Reports include but are not limited to excess reports.
 

ASSESSMENT CRITERION 5 
5. Irregular accounts are identified and actioned as per company specific requirements. 

ASSESSMENT CRITERION 6 
6. Payments are recorded as per company specific requirements. 

ASSESSMENT CRITERION 7 
7. Documents are filed as per company specific requirements. 


UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
1. Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.

2. 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.

3. Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines in the relevant qualification and the agreed ETQA procedures.

Therefor anyone wishing to be assessed against this unit standard may apply to be assessed by any assessment agency, assessor or provider institution, which is accredited by the relevant ETQA. 

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
Have knowledge of the basic principles of lending
Have knowledge and understanding of the Usury Act
Have knowledge and understanding of the company Credit Risk Policy 


Critical Cross-field Outcomes (CCFO): 

UNIT STANDARD CCFO WORKING 
The learner is able to work effectively with others when obtaining proof of various credit checks from other departments and when handing documentation over for approval to higher authority. 

UNIT STANDARD CCFO COLLECTING 
The learner is able to collect, organise and critically evaluate information when assessing information received from the customer and other departments before recommending a proposal for credit decision. 

UNIT STANDARD CCFO COMMUNICATING 
The learner is able to communicate effectively both verbally and in writing when interviewing the customer to establish they're needs , and when drawing up contracts with the customer on acceptance of the proposal. 

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
Elective  20185   Further Education and Training Certificate: Banking  Level 4  NQF Level 04  Reregistered  2023-06-30  BANKSETA 


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. Absa Learning & Development 
2. Bidvest Bank 
3. Chartall Business College 
4. Compuscan Academy 
5. Cornerstone Performance Solutions (Pty) Ltd 
6. Felix Risk Training Consultants 
7. Firstrand Bank - Benmore 
8. Nedbank Ltd 
9. The Facilitation Workshop 



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.