Course Title: Assess credit applications

Part B: Course Detail

Teaching Period: Term1 2012

Course Code: BAFI5196C

Course Title: Assess credit applications

School: 650T TAFE Business

Campus: City Campus

Program: C4297 - Certificate IV in Banking Services

Course Contact : Clem Simonetto

Course Contact Phone: +61 3 9925 5426

Course Contact

Name and Contact Details of All Other Relevant Staff

Nominal Hours: 30

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Pre-requisites and Co-requisites

There are no pre-requisites to this course is co-delivered with:

FNSINC402A - Develop and maintain in-depth knowledge of products and services used by an organisation or sector
FNSASIC301A - Establish client relationship and analyse needs
FNSASIC302A - Develop, present and negotiate client solutions

Course Description

On completion of this course you will be able to satisfy initial financial services enquiries by assessing and monitoring client credit information. You will able to assess risk to the organisation and be able to establish credit terms and limits.

If you are undertaking this course in Melbourne from semester 2, 2012 onwards your teacher will advise you if you require access to a computer for the course. It is recommended that you have access to a mobile computing device to allow greater flexibility in terms of where you can work on campus outside class times.

National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSCRD401A Assess credit applications


Assess and monitor credit information

Performance Criteria:

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


Assess the risk

Performance Criteria:

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


Establish credit terms and limits

Performance Criteria:

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


Satisfy initial enquiry

Performance Criteria:

4.1. Credit decision is made based on assessed information and in accordance with organisation risk man agement 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

Learning Outcomes

To achieve competency in this unit you must be able to demonstrate you can satisfy an initial financial services credit enquiry, assess and monitor client credit information and assess the risk exposure to your organisation.

And be able to demonstrate a sound knowledge and skill in the area of establishing credit terms with the client and the limits of exposure for the organisation.

Details of Learning Activities

A range of learning activities are planned for this course including self-paced and collaborative classroom based activities.

The self-paced activities will be delivered via Blackboard and access to and use of the internet to collect, analyse and use information on a range of financial products and financial organizations.

The collaborative classroom based activities will include group discussion, group problem solving activities and opportunities to practice your skills in a simulated/real workplace environment.

You are expected to participate and contribute in all scheduled learning activities including completion of tutorial exercises consisting of practical problems, short answer questions, multiple choice, case studies and extension exercises.

Teaching Schedule

WeeksTopics Assessment
1Familiarisation with Course, Blackboard, Course requirements
Overview of assessment requirements
Where to get support, Student responsibilities
2Introduction to financeTask 1 – Introductory assessment task - Due
You will receive the feedback in week 3. This task represents Part A of assessment task 2.
3Banking products and services – Personal loans 
4Introduction to personal financial statements 
5Introduction to personal financial statements 
6Personal Bank Overdrafts 
7Mortgage loans  
8Assessment Task 2  
9Assessment Task 2 due Task 2 Due
You will receive the feedback in week 11. If required, resubmission for this assessment is due by the end of week 13.
10Deposit taking products  
11Deposit taking products 
12Concepts of General Insurance, General Insurance Contracts, Insurance Products  
13Sum Insured, Excesses, Taxes & Levies, Stamp Duty, Fine Service Levy (FSL), Goods and Services Tax (GST). 
14General Insurance - continued  
15Group assignment - due Task 3 Due
You will receive the feedback in week 16. If required, resubmission for this assessment is due by Friday 8th June.
16Feedback on assessment  

Learning Resources

Prescribed Texts


Other Resources

Learning Resources

Learning support materials are made available on the Online Learning Hub Access to an Internet connected computer outside of class times – Internet connected computers are available in the Business Portfolio labs on Level 3 of Building 108, 239 Bourke Street Melbourne.

Overview of Assessment

Assessment may incorporate a variety of methods including written tests, a group assignment and final assessment.

Tests are closed book and consist of multiple choice, practical exercises and short answer questions.

The group assignment requires students to research the role and function of a financial institution or a major contemporary issue relating to the financial system and of concern to consumers.

Students are advised that they are likely to be asked to personally demonstrate their assessment work to their teacher to ensure the relevant competency standards are being met. Students will be provided with feedback throughout the course to check their progress

Assessment Tasks

Overview of Assessment
Students must demonstrate an understanding of all elements of competency to be deemed competent. A range of assessment methods are used to assess practical skills and knowledge.

Critical aspects of assessment
Evidence of the ability to:
• identify and maintain current knowledge of the financial products and services an organisation uses and provides
• identify unique characteristics of financial products, how they rate to competitors, and the type of customers and customer needs they are best suited for.

Assessment Tasks
You are required to complete 3 tasks. You must successfully complete all 3 tasks to be deemed competent in this unit.

TASK 1 (Due Date: End of week 2)
Introductory assessment task. This assessment will consist of a practical case-study requiring you to identify and briefly describe financial products and services provided by a bank or deposit-taking institution; this will include identifying the 6 CC of lending.

To be deemed competent in this task you must identify and briefly describe a variety financial products provided by a bank or deposit-taking institution. You must also list the 6 CC of lending.

TASK 2 (Due Date: End of Week 9)
Individual Assignment. A case study exercise requiring students to assess a customer or customers’ financial needs prior to providing the customer with general advice on the following products:
- a personal loan;
- personal overdraft;
- mortgage loan

To be deemed competent in this task you must:
- accurately check all application forms;
- complete a personal loan checklist;
- advise client of suitable loan products, including monthly repayments, fees and charges;
- assist client in preparation of personal financial statements;
- make a recommendation on the outcome of the application;
- respond to client enquiries regarding an application for a mortgage loan, including the documentation required by the financial institution, interest rates, fees and charges;
- identify the advantages of overdrafts for a client.

TASK 3 (Due Date: End of Week 15)
A group assignment requiring students working in groups to research a general insurance product that meets the general insurance, personal and finance needs of a client.

To be deemed competent in this task you must write recommendations for a general insurance product that covers the following:
- risks covered;
- premium including and excesses, extensions and exclusions;
- taxes, charges and discounts;
- recommendation that addresses the client’s needs.
The above task will be presented in report format (approx. 300- 500 words per recommendation).

Assessment Matrix

Other Information

Marking Guide (competency):
Vocational Education and Training (VET) is based on current industry needs and the focus on preparing you for the workplace. Because VET courses are informed by practical application of knowledge and skills, they are based on a system known as ‘competency based training’ (CBT). So when you are assessed in VET it is about whether you are competent to do the job, as well as having a firm grasp on the knowledge and skills required to do that job, as opposed to traditional curriculum based education settings that are often based on knowledge retention.

You need to demonstrate you are competent in each element of the unit of competency you are studying.   You will receive feedback on each assessment task that will inform you whether you are competent or not and how well you are performing. Once competent in all elements of the unit you receive a competency grading.   Please refer to the Final Grades table below.

Marking Guide (Grading)
After achieving competency we then grade your performance in the unit; this gives you the opportunity to have the level of your performance formally recognized against industry standards and employability skills.
The grading is according to the following criteria:

You are required to demonstrate a high level of ability to complete all tasks independently as per the specifications as well as demonstrating a high level of initiative in your access of information required for the assessments tasks, accuracy and quality of information presented to the client and appropriate recommendation using the information you have access, analysed and presented.

You need to show a depth of understanding of the key concepts and knowledge of the financial products covered in the assessment tasks, including personal loans and overdrafts and general insurance products. Accuracy of all related interest rates, repayment calculations, fees and charges is essential.

Demonstration of appropriate use of technology to assist in presenting all tasks clearly and suitable for the intended audience. This requires use of bank and financial institution web sites to access financial data and demonstrate a capacity to use financial calculators to calculate repayments and credit limits.

You must complete all work requirements as per course requirements and timely submission of all required assessment tasks. You need to collate data and organize it in a presentable format that meets the requirements of the assessment tasks.

You are required to work in groups to complete assessment task 3. Communication skills and teamwork is required to collaboratively complete this task. Additionally you will need to network to collate financial data for personal loan products required in assessment task 2.

Final Grade Table
CHD Competent with High Distinction
CDI Competent with Distinction
CC Competent with Credit
CAG Competency Achieved – Graded
NYC Not Yet Competent
DNS Did Not Submit for assessment

Course Overview: Access Course Overview