FNSCRD301 Process applications for credit, Assessment 1 - Knowledge

FNS40815 Certificate IV in FINANCE & MORTGAGE BROKING
FNSCRD301 Process applications for credit
Assessment 1 - Knowledge
FNS40815_ FNSCRD301
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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 Explanation Advice that you should provide to the
client about the product
Car loan
It is one of the significant type
of loan which is taken for
paying amount for car. It
helps in explaining how much
you have borrowed and
require to pay in each month
It is important to understand there is
always fixed rate of interest which is
needed to be paid. It is taken between
the period 1 5to 5 years.
Personal loans
It can be taken for any
personal reason in which
interest, fees, etc need to be
incurred for using borrowed
amount.
This kind of loan can help in fulfilling
desire like holidays, etc. which need to
be paid between 1-5 years according to
decided condition in contract. It has
features like large balance, fixed
interests rate, etc.
Credit cards This is used to buy things on
cred which can be pad to
bank later. There is fixed limit
which is decided by bank for
particular individual according
to its creditworthiness
Features of it includes paying fees,
interest in absence of paying fees,
exceeding credit limit, etc. It has higher
rate of interest than other loan, non-
payment can impact credibility of users,
etc.
Consolidation
loan It is basically combining
several loans to reduce
repayments.
It has features like lower interest rate,
longer period, nonavailability of paying
fees, charges, etc. it has late payment
and set fees
V1.0 REAA Released 14/06/23
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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
Car. Personal,consolidated, consumer lease, etc
are few types known by the clients which helps
to understand that they have some sort of
understanding
Level 2: Some level of
understanding
Set up, late payment fees, proceeding, interests,
etc are few expenses which are associated with
it that shows some extent of knowledge
Level 3: A higher level of
understanding
He is contact the borrower in case of non-
payment of fund loaned that indicates higher
extent of understanding.
V1.0 REAA Released 14/06/23
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