SAQA

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SOUTH AFRICAN QUALIFICATIONS AUTHORITY

REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE:

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
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 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	Passed the End Date - Status was "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.	AAR Trading and Projects (Pty) Ltd
2.	Advanced Assessments and Training (Pty) Ltd
3.	Africa Glory Empowerment Services
4.	Assured Vocational Skills Institute (Pty) Ltd
5.	Brainwave Project 707 Pty Ltd
6.	Brainwave Projects 707
7.	DC Academy
8.	Delmas Development Centre
9.	Fachs Business Consulting and Training
10.	Gigimo Tourism Academy
11.	MAT 007 (PTY) LTD
12.	Matibidi Raphela Investments (Pty) LTD
13.	Octomate Education Pty Ltd
14.	Octopus Training Solutions
15.	Production Management Institute of Southern Africa (Pty) Ltd
16.	RIAPHATHUTSHEDZA
17.	Riverwalk Trading 151 CC trading as Culhane Consulting
18.	SIGNA ACADEMY (PTY) LTD
19.	Sinovuyolethu Trading (Pty) Ltd
20.	THE SHERQ CENTRE OF EXCELLENCE PTY LTD