FNS40815 FNSCRD301 Assessment 1 Knowledge

FNS40815 Certificate IV in FINANCE & MORTGAGE
BROKING
FNSCRD301 Process applications for credit
Assessment 1 - Knowledge
FNS40815_ FNSCRD301 Assessment 1 Knowledge Document Owner: Released November 2022
Page 1 of 8

tmpohnu8razB57152_16233153071623333891865.docx
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 Car loan is the loan which
allows paying for the
vehicle when the
Individual is not able to
pay.
Advice provided to the client is
that before purchasing the desired
car, individual should ensure full
information about the product.
Personal
loans
Personal loans are the
loans which are used for
the variety of purposes
offered by the online
lenders, credit unions etc.
Advice provided to the client is
that personal loans should be
taken for the fulfilment of needs
and requirements.
Credit cards Credit card is the card
from which the individual
pays the money or make
transactions (Awoyemi
and et.al., 2017).
Advice provided to the client about
the product is that the product
should be bought with the help of
credit card which helps in making
easy transactions.
Consolidation
loan
Consolidation loan is the
personal loan which is
used to pay off the
existing debt.
Advice provided to the client about
the consolidation loan is that the
debt balance should be incurred
effectively by the client.
V1.0 REAA Released November 2022
Page 2 of 8

tmpohnu8razB57152_16233153071623333891865.docx
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 describinghow 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
The limited understanding is known about
the debt collector. The assistance that
should be provided regarding the credit
application about the debt collector is that
the balance should be checked
appropriately.
Level 2: Some level of
understanding
The cost associated with credit has some
level of understanding which denotes that
the assistance should be provided to the
client regarding the information.
Level 3: A higher level of
understanding
The higher level of understanding is of the
types of credit which are available in
V1.0 REAA Released November 2022
Page 3 of 8