Process Applications for Credit

FNSCRD301 PROCESS
APPLICATIONS FOR
CREDIT

ACTIVITY: 1
Credit officers must consider the following special needs of the customers:
 Providing them with the information necessary to make an informed decision.
 Ensuring that the financial status of the customer is capable of meeting the interest
payment on the borrowed amount (Credit Granting Procedure. 2021).
 Credit officer must consider for what purpose that credit has been obtained.
 Also, the information must safely store in the database of the organisation.
ACTIVITY: 2
The term not unsuitable with regards to the customer contract needed to be ensured by the credit
provider so as to not suffer at the time of repayment of the credit and that the contract must meet
the requirements and objectives of the credit providing organisation. A credit will be not
unsuitable if:
 The borrower do not face any hardships while repaying the loan.
 Meet the requirements and objectives of the customers.
ACTIVITY: 3
Credit officer must ask for the personal information such as employment and financial
documents as per the organisational procedure and other additional information required for
larger amounts. By asking for references such as bank and trade references, appropriate
verification can be done for the clients. Financial statements facilitate justification of information
provided in the credit application.
ACTIVITY: 4
Among the 5 c’s of credit, capacity indicates the ability of borrower to pay back the loan amount.
It is measured through establishing comparison between income and business’s ability of the
borrower against the loan amount outstanding. The cash flows generate by business of the
borrower is also taken into consideration in order to ensure the repayment of loan when it
becomes due.
ACTIVITY: 5
When a loan application is declined by the credit officer and then the customer receives
intimation of the same (Digital Intelligence for Financial Services. 2019). So, to improve the
quality of loan application and ensure the acceptance of the same for the next time then the credit
officer must ask for some additional information by contacting the customer personally or
includes those necessary information like credit score of the customers or history of bank details
of the customers. In this way approval of the loan application can be obtained easily.