Home Loan Approval: Customer Information and Process Project

This project analyzes the home loan process from the initial customer inquiry to the final credit decision. It covers the essential steps, including assessing the customer's financial situation, gathering necessary documentation (income proof, ID, property details), and providing comprehensive information about loan terms, interest rates, and repayment obligations. The project emphasizes the importance of verifying credit applications, analyzing credit information for accuracy, and adhering to organizational risk policies and timelines. It also highlights the need to identify and evaluate potential risks associated with the applicant, establish appropriate credit terms and limits, and maintain open communication with debtors and relevant stakeholders to ensure information accuracy. The project stresses the significance of making informed credit decisions based on assessed information and providing courteous advice to customers regarding the credit decision.

Project A
When a customer approaches for a loan to finance their purchase of a home, then various options
must be recommended that is not unsuitable to their financial situation. A detailed explanation
pertaining to how loan could be secured and what documents or preliminary requirement must be
fulfilled can be done in the following manner:
What will happen?
A customer could seek home loan and apply for first home - owner grant if he is buying home
for the first time. Also, he can appoint mortgage broker who can find better deals, terms and
conditions for him. A broker will perform preliminary assessment which involves study of
client's financial situation and evaluation and recommendation of various loan options that are
best suiting the needs of the client. For this various documents are needed to be submitted such
as the following:
What is needed?
A copy of income and employment proof is needed. An ID proof issued to the Australian citizens
that contain a photograph is also needed. Details of the property that will be purchased with the
loan amount and at last, the security that is needed to be kept with the lender must be finalized
beforehand.
Information provision to the customer regarding the home loan
Information such as what interest rate would be charged, how much monthly repayment
obligations would be there, for how long within which the loan must be repaid, what are the
features offered by the loan and whether it is sufficient for satisfying customer's need or not.
Before all this information, various comparative and competitive options must be demonstrated
to the customer to allow them to decide upon the most effective and profitable options that is
best suiting their needs. In this way, information pertaining to documents needed to be submitted
and actions that the customer is required to undertake will be provided beforehand.
How information will be provided?
To ensure better understanding of the loan particulars by customer, there are various ways in
which information could be provided to customer and their queries and agreements could be
addressed and obtained, like:
1. Through mail information could be communicated
2. Through meeting on Zoom or other online applications and software

3. By meeting with the customer on face to face in order to discuss their needs and explaining
options suiting their needs.
Project B
Name:
Yes/No
Satisfy customer’s initial enquiry
Yes, the initial enquiry was satisfactory enough of the customer.
Evidence of competency
Respond to customer’s initial enquiries on the type range and availability of credit and provide
information in ways which show courtesy and respect for and recognise the special needs of the
customer
The initial enquiry of the customer motivate the banker to allocate the loan in order to meet the
requirement of the client. The good past history of client will motivate the bank to provide loan
based on the need of the customer.
Evidence of competency
Advise and provide basic information such as terms and conditions and interest rate and
determine in accordance with credit policy legislative requirements potential securitisation needs
Yes, the client must get the proper information about the term and condition of the loan. This
include the interest rate, tenure of the contract and such other condition. The agreement must
mentioned all the condition associated with the loan in detailed manner.
Evidence of competency
Monitor credit information

Yes, this is important to monitor the credit information of the client. Giving loan is a very
important aspect and credit ratting ensure the banker that it is safe to provide loan to the
customer.
Evidence of competency
Verify in accordance will organisation policy and procedures credit applications and documents
to maintain accuracy of credit database information
Yes, it is necessary to verify the credit application based on the policies of the company. Every
financial institutions contain its own policies to grant loan to the customer. If the credit ratting of
the customer match up with the company's set standard than only the loan must be approved.
Evidence of competency
Analyse credit information to establish that sufficient evidence of accurate information has been
provided
Yes, it is important to analysis the credit information with the use of proper evidence like credit
ratting and such other. Security related information must also be verified properly before
approving the loan of the customer.
Evidence of competency
Complete the processing of applications in accordance with the organisation risk policy and
timelines
Yes, the processing of application must be done according to the risk policy and timeline of the
organisation.
Evidence of competency
Liaise with debtor and relevant internal and external personnel to ensure information is kept up-
to-date and disseminated appropriately
Yes, to liase with debtor and respective stakeholders for ensuring that information about the
client is up-to-date and disseminated appropriately.
Evidence of competency

Assess the risk
Yes, to assess the risk is important before approving the loan.
Evidence of competency
Identify applicant’s financial circumstances in order to determine the level of risk associated
with the application
Yes, this is also a need to identify the financial circumstances attached with the client that can
guide the potential risk related to the client. This involve verifying the number of dependent,
medical history and all other records.
Evidence of competency
Identify and evaluate possible risks associated with the application or applicant in order to
minimise or protect against risk
Yes, this is also necessary to identify and evaluate the possible risk involve with the applicant.
This further involve verifying all the policies client has taken to overcome or minimise such a
risk.
Evidence of competency
Identify in accordance with organisation credit policies the need to take security to minimise risk
exposure
Yes, the loan officer must also identify the credit policy which are essential to minimise the risk
with the use of security. This create a scope to grant the loan to the customer.
Evidence of competency
Document assessment in accordance with organisation procedures
Yes, the document related assessment of the client that is submitted by the same is also require to
verify the authenticity of the application process.
Evidence of competency
Establish credit terms and limits

Yes, this is require to establish the credit term and limit to the extent loan can grant to the client.
Evidence of competency
Make the credit decision based on assessed information in accordance with organisation risk
management policy
Yes, the loan officer assess the information of the client on the basis of the policy of the
organisation risk management. Based on the evaluation loan is granted to the client.
Evidence of competency
Determine credit terms limits with an organisation credit policy guidelines and current criteria
for risk management objectives and advise the customer properly and courteously of the credit
decision
Yes, to determine about the credit term limit based on the policy of the company and its
guidelines or current criteria is also needed before taking any step to grant the loan to the
customer.
Evidence of competency