Assessment 1 – Knowledge

FIND A SOLUTION AT Academic Writers Bay

FNSCRD301 Process applications for credit
Assessment 1 – Knowledge
Activity 1
Refer to your Learner Guide and the guide ‘Money Smart – Types of Credit’, located in the Additional Resources folder and respond to the following:
Your supervisor has asked you to provide information to clients about different credit products.
Compete the table below to demonstrate to your supervisor your understanding of credit products and their application.
(List the features of credit products and their application requirements)
Activity 1 Answer
Type of Credit
Advice that you should provide to the client about the product
Car loan

Personal loans

Credit cards

Consolidation loan

Activity 2
Refer to your Learner Guide and the guide ‘Money Smart – Types of Credit’, located in the Additional Resources folder and respond to the following:
You have asked the following questions to check a client’s level of understanding and knowledge regarding credit application processes:
What types of credit are available in Australia?
Do you know the costs associated with credit?
Do you know what a debt collector is?
Now complete the table below by describing how you can assist the special needs and requirements of a client according to the level of knowledge and understanding they have demonstrated when answering the above questions.
(Identify ways of obtaining and checking relevant information from applicants)
Activity 2 Answer
Level of Understanding
Description of action or assistance that should be provided
Level 1: No or a limited understanding

YOU MAY ALSO READ ...  HS2021 Database Design and UseHI5002 Finance for BusinessWhat will the price of the XLR Corporate bondHI5017 MANAGERIAL ACCOUNTINGA payment schedule requires 20 annual paymentsHI5017 MANAGERIAL ACCOUNTING

Level 2: Some level of understanding

Level 3: A higher level of understanding

Activity 3
Explain the key features of a financial services provider’s credit assessment policy based on the principles of responsible lending.
(Explain key features of organisational policy and procedures that relate to credit assessments, security and customer service)
Activity 3 Answer

Activity 4
The purpose of the National Credit Code is to provide protection for consumers who enter into credit contracts for personal purposes. How does the legislation identify whether a loan is for personal purposes, as opposed to business purposes?
(Explain the key purpose of relevant credit legislation, statutory requirements and codes of practice, covering: consumer credit; personal property securities; privacy)
Activity 4 Answer

YOU MAY ALSO READ ...  Decreased customer service is hidden cost of turnover

Activity 5
When taking out a business loan a lender will often want to secure the loan in the form of an asset. This security is intended to minimise risk exposure in the event the applicant is unable to repay the loan.
Describe the main types of ‘security’ that may be required to obtain a small business loan.
(Explain types of security)
Activity 5 Answer

YOU MAY ALSO READ ...  Frantic Fast Foods had earnings after taxes of $1,190,000 in the year 2012 with 399,000 shares …
Order from Academic Writers Bay
Best Custom Essay Writing Services