SAQA

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SOUTH AFRICAN QUALIFICATIONS AUTHORITY

REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE:

Assess and finalise credit application for a corporate, club, association or trust in a banking environment

SAQA US ID	UNIT STANDARD TITLE
7343	Assess and finalise credit application for a corporate, club, association or trust 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 5	Level TBA: Pre-2009 was L5	50
REGISTRATION STATUS		REGISTRATION START DATE	REGISTRATION END DATE	SAQA DECISION NUMBER
Passed the End Date - Status was "Reregistered"		2018-07-01	2023-06-30	SAQA 06120/18
LAST DATE FOR ENROLMENT		LAST DATE FOR ACHIEVEMENT
2026-06-30		2029-06-30

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 dealing of credit when assessing and finalising a credit decision for a corporate, club, association or trust. Persons credited with this unit standard will be able to assess the credit application and documentation, analyse the application, finalise the credit decision and monitor the credit risk.

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING

Persons attempting this unit standard should have completed unit standards CS001 - CS003 and unit standards RM010 - RM013. They should also have an understanding of certain accounting concepts, understand the relationship that exists between risk and return.

UNIT STANDARD RANGE

Corporate relates to companies, CC's.

UNIT STANDARD OUTCOME HEADER

Assess credit application and relevant documentati

Specific Outcomes and Assessment Criteria:

SPECIFIC OUTCOME 1

Assess credit application and relevant documentation for credit approval

OUTCOME NOTES

1.1 A credit application and relevant documentation is received with a request to finalise the credit decision as per company specific requirements.

1.2 The credit application and relevant documentation is assessed as per company specific guidelines.

1.3 The contractual capacity of the customer is assessed to ensure that he/she can legally contract.

1.4 Proof of various credit checks are obtained to ensure the credit worthiness of the customer.

OUTCOME RANGE

Range Statements

Corporate relates to companies, CC's.

Assessment Criteria 1.2: Assessed includes but is not limited to correct completion of customer details on application form.

Assessment Criteria 1.4: Credit checks include but are not limited to previous banking history, previous/current accounts held, credit bureau information.

Assessment Criteria 2.1: Analysis of financial information includes but is not limited to balance sheet, income statement, cash flow statement, budgets.

Assessment Criteria 2.2: Micro-environment analysis includes but is not limited to competencies of individuals in the business, sector is involved in product specific risk.

Assessment Criteria 2.3: Micro-environment analysis includes but is not limited to political, economical, physical, social, technological and international .

Assessment Criteria 2.6: Security includes but is not limited to variable security, fixed value, desirable security.

Assessment Criteria 2.7: Purpose includes but is not limited to profitability, desirability.

Assessment Criteria 2.8: Principles of risk include but are not limited to cash flow surpluses, net asset
position, availability of tangible security .

Assessment Criteria 4.2: Management reports include but are not limited to excess reports, arrears, highest and lowest figures to establish hard core.

Assessment Criteria 4.4: Returns include but are not limited to refer to drawer cheques, not provided for payments.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

Assess credit application and relevant documentation for credit approval

ASSESSMENT CRITERION NOTES

ASSESSMENT CRITERION RANGE

SPECIFIC OUTCOME 2

Analyse credit application for approval.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. An analysis of the customer's financial information is conducted to establish solvency, liquidity and repayment ability.

ASSESSMENT CRITERION RANGE

Analysis of financial information includes but is not limited to balance sheet, income statement, cash flow statement, budgets.

ASSESSMENT CRITERION 2

2. An analysis of the customer's business micro-environment is conducted to establish potential business specific risks.

ASSESSMENT CRITERION RANGE

Micro-environment analysis includes but is not limited to competencies of individuals in the business, sector is involved in product specific risk.

ASSESSMENT CRITERION 3

3. An analysis of the customer's business micro-environment is conducted to establish potential business specific risks.

ASSESSMENT CRITERION RANGE

Micro-environment analysis includes but is not limited to political, economical, physical, social, technological and international.

ASSESSMENT CRITERION 4

4. All non-qualifying customers are identified and the originator of the documentation and application is advised of the outcome as per company specific requirements.

ASSESSMENT CRITERION 5

5. The customers needs are correctly matched with the relevant products as per company specific requirements.

ASSESSMENT CRITERION 6

6. Security offered by the customer is analysed in relation to the credit facility required.

ASSESSMENT CRITERION RANGE

Security includes but is not limited to variable security, fixed value, desirable security.

ASSESSMENT CRITERION 7

7. The purpose of the credit application is analysed to measure the risk associated with the credit facility.

ASSESSMENT CRITERION RANGE

Purpose includes but is not limited to profitability, desirability.

ASSESSMENT CRITERION 8

8. The principles of risk return in pricing the customer's borrowings are applied as per company specific guidelines.

ASSESSMENT CRITERION RANGE

Principles of risk include but are not limited to cash flow surpluses, net asset position, availability of tangible security.

SPECIFIC OUTCOME 3

Finalise credit decision.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. A decision based on the analysed information is concluded as per company specific requirements.

ASSESSMENT CRITERION 2

2. The decision is documented and includes any security to be requested, convenance to be maintained and any other specific conditions as per company specific guidelines.

ASSESSMENT CRITERION 3

3. The initial relationship party is informed of the decision status as per company specific requirements.

ASSESSMENT CRITERION 4

4. Proof of all requested security documentation correctly obtained from the customer is evidenced as per company specific requirements.

SPECIFIC OUTCOME 4

Monitor, review and manage the credit risk.

ASSESSMENT CRITERIA

ASSESSMENT CRITERION 1

1. Accounts are regularly reviewed to identify possible risks as per company specific guidelines.

ASSESSMENT CRITERION 2

2. Credit risk management reports are regularly and accurately followed-up as per company specific requirements.

ASSESSMENT CRITERION RANGE

Management reports include but are not limited to excess reports, arrears, highest and lowest figures to establish hard core.

ASSESSMENT CRITERION 3

3. All account files are updated with any changes of customer information when applicable as per company specific requirements.

ASSESSMENT CRITERION 4

4. All returns on customer are monitored and action taken as per company specific requirements.

ASSESSMENT CRITERION RANGE

Returns include but are not limited to refer to drawer cheques, not provided for payments.

ASSESSMENT CRITERION 5

5. Action is taken on all communications received relating to changes on security documentation if applicable 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.

Therefore 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 Credit Ethic and Policy

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 IDENTIFYING

The learner is able to identify and solve problems when analysing credit risk applications ensuring all possible areas of risk are identified and analysed before taking a decision on the granting or declining of credit.

UNIT STANDARD CCFO WORKING

The learner is able to work effectively with others when analysing the customer's business micro-environment, ensuring all relevant internal and external parties are approached.

UNIT STANDARD CCFO COLLECTING

The learner is able to collect, analyse, organise and critically evaluate information when monitoring, reviewing and managing the credit risks, ensuring decisions taken are based on complete and accurate information.

UNIT STANDARD CCFO COMMUNICATING

The learner is able to communicate effectively both verbally and in writing when informing the initial relationship party of the credit decision so that all information is clear and complete.

UNIT STANDARD CCFO SCIENCE

The learner is able to use science and technology effectively when forwarding reports electronically, ensuring complete and accurate information with regard to minimising credit risks is available on systems.

UNIT STANDARD CCFO DEMONSTRATING

The learner is able to understand the relationship between the credit ethic and policy of the bank and sound business decisions on credit risk.

REREGISTRATION HISTORY

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

UNIT STANDARD NOTES

Legal Requirements:

Relevant legislation

QUALIFICATIONS UTILISING THIS UNIT STANDARD:

	ID	QUALIFICATION TITLE	PRE-2009 NQF LEVEL	NQF LEVEL	STATUS	END DATE	PRIMARY OR DELEGATED QA FUNCTIONARY
Elective	61589	National Certificate: Banking	Level 5	Level TBA: Pre-2009 was L5	Passed the End Date - Status was "Reregistered"	2023-06-30	As per Learning Programmes recorded against this Qual

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.	AFRICAN BANK LTD
2.	Chartall Business College
3.	Felix Risk Training Consultants
4.	Plumb Line Risk Alignment
5.	Riverwalk Trading 151 CC trading as Culhane Consulting
6.	Standard Bank Personal and Business Banking
7.	The Academy of Financial Markets
8.	The Institute of Literacy Advancement
9.	THE SHERQ CENTRE OF EXCELLENCE PTY LTD