LEARNER ASSESSMENT PACK
Develop and implement credit policies,
procedures and control systems
(13426)
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Unit Standard SAQA 13426- Develop and implement credit policies, procedures and control
systems
INDEX
Page No
Instructions to Learner
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Assignment: Assessment Questionnaire
4
Declaration of Authenticity
16
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Unit Standard SAQA 13426- Develop and implement credit policies, procedures and
control systems
INSTRUCTIONS TO LEARNER
Purpose of the
Assessment:
The purpose of assessment against this unit standard is to
award credits on the NQF to learners who are able to:



Context of the Unit
Standard
Determine the essential elements of a credit policy
Break policies down to procedures and write the
procedures into a manual
Design control systems that will support the credit
policies and the structure and profile of operations.
This unit standard is registered on the National Qualifications
Framework as follows:
Field:
Learning
Assumptions:
Assessment
Methods:
Sub-field:
Business, Commerce and Management
Studies
Finance, Economics and Accounting
Business, Co
Studies
Generic Man
Number:
13426
14667
Level:
Level 4
Level 4
Credits:
10
10
Open
The following assessment methods will be used for this
assessment:
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Questioning - Q
Observation - O
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Unit Standard SAQA 13426- Develop and implement credit policies, procedures and
control systems
Assessment
Process:
Step 1 – Planning for the Assessment
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Assessment
Process (Cont):
You will need to complete an assessment plan together
with your assessor/line supervisor
Your assessor will prepare you for your assessment and
complete the assessment preparation plan with you
Ensure you are familiar with what is expected of you for
this assessment and the unit standard
Step 2 – Completing the Assessment
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This assessment will be completed by means of a
Questionnaire detailed on page 4, Observation on page
on 14. Hand in the questionnaire fully completed as per
the instructions by the date agreed on the assessment
plan
Your assessor may ask you additional questions
Your assessor will record the evidence that you have
submitted onto the assessment guide
Based on this evidence, the assessor will make a
judgement of 'Competent' or 'Not Yet Competent' or 'Not
Assessed' for each assessment criteria and overall for the
total unit standard
Step 3 – After the Assessment
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Special
Conditions:
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If 'Not Assessed' you and the assessor will agree on the
criteria not assessed and arrange an additional
assessment date
If 'Not Yet Competent' you and the assessor will identify
why this judgement has been made and the action/s
necessary. A re-assessment date should also be agreed
upon
All decisions will be recorded on the assessment guide,
which all parties should sign
You will only be declared 'Competent' if you have provided
sufficient and valid evidence against all the assessment
criteria and specific outcomes of this unit standard
After declaration of competence, your assessment is
subject to the internal moderation process
Once this is complete, your results will be entered onto
SAQA's NLRD – National Learner Record Database
The declaration of authenticity on page 16 must be signed
by your manager, your assessor and yourself to certify
that the evidence is authentic and that this has been
applied in your workplace
Feedback on your assessment will be given to you by
your Line Manager/Assessor
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Unit Standard SAQA 13426- Develop and implement credit policies, procedures and
control systems
Resources:
The following additional/supporting resources will help you
when preparing for your assessment:
Resource
Reference
Available
From
Access to relevant computer system(s)
Access to staff training guides and other
process guidelines
Access to policies and procedures
Access to the Code of the Banking Practice
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Unit Standard SAQA 13426- Develop and implement credit policies, procedures and
control systems
Section 1: QUESTIONING
Introduction:
The following questions comprise the Knowledge Assessment for Unit Standard
13426. They represent the theoretical component of the evaluation and they test
your understanding of the different work activities. You must answer all the questions
in full and write in the spaces provided. The mark allocation is a guide to the
number of factors being evaluated per question.
As the learner you must:
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

Write all your answers in the space below the questions.
Ensure that you have answered all the questions.
Ensure that you have answered the questions in full.
QUESTIONNAIRE
SPECIFIC OUTCOME 1: Determine the essential elements of a credit policy.
SPECIFIC OUTCOME 2: Break policies down to procedures and write the
procedures into a manual.
SPECIFIC OUTCOME 3: Design control systems that will support credit policies
and structure and profile of operations.
CCFO DEMONSTRATING: Demonstrate an understanding of the world as a set
of related systems: Discuss the importance to a micro finance institution of a clear
credit policy.
CCFO COLLECTING: Collect, analyse, organise and critically evaluate
information: Formulate and motivate the main elements of a credit policy.
Question 1:
What is the strategic motivation for credit policies and why are policies
reflected in processes and procedures?
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(2)
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Unit Standard SAQA 13426- Develop and implement credit policies, procedures and
control systems
QUESTIONNAIRE (Continued)
Question 2:
True or false?
Policies are reflected in procedures in alignment with company and regulatory
requirements. The policy should include:
 Important legal requirements.
 Protection of the customer.
 Protection of the company.
 Set limits on the company’s operations.
______________________________________
(1)
Question 3:
List 5 examples of company policies.
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(5)
Question 4:
What does a good credit policy set out to do? List 5 points.
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(5)
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Unit Standard SAQA 13426- Develop and implement credit policies, procedures and
control systems
QUESTIONNAIRE (Continued)
Question 5:
Provide 6 examples of what principles are applied in a good credit policy, to
ensure a profitable and sustainable credit business.
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(6)
Question 6:
What is your company’s vision? (Refer to Issue 1)
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(1)
Question 7:
What are your company’s strategic focus areas? (Refer to issue 1)
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(6)
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Unit Standard SAQA 13426- Develop and implement credit policies, procedures and
control systems
QUESTIONNAIRE (Continued)
Question 8:
Does your company’s vision and strategic focus incorporate any of the
important principles mentioned in 3 above (Yes/NO)?
______________________________
(.5)
Question 9:
It is essential that the credit policy ties up with the business objectives (aims)
of the company. Which of the following elements would you include when
writing your business objectives?
1. Background
2. Objectives – long-term and two-year objectives.
3. Products offered.
4. Qualifying criteria.
5. Target Market.
6. Location and Outlets.
7. Staff complement and treatment.
8. All of the above
______________________________________________
(1)
Question 10: Are there any other business objectives that you would include? Name two
examples.
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_______________________________________________________
(2)
Question 11: Under the heading of Target market – low-income market segment, what
micro-finance product would more likely appeal to this market segment?
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(1)
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Unit Standard SAQA 13426- Develop and implement credit policies, procedures and
control systems
QUESTIONNAIRE (Continued)
Question 12: Provide 10 examples of headings that you would include in a credit policy.
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(5)
Question 13: List the main elements of a credit management process. List at least 6 that
need to be specially considered.
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(6)
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Unit Standard SAQA 13426- Develop and implement credit policies, procedures and
control systems
QUESTIONNAIRE (Continued)
SPECIFIC OUTCOME 2: Break policies down to procedures and write the
procedures into a manual.
CCFO COMMUNICATING: Communicate effectively using visual, mathematical
and language skills both verbally and in writing.
Question 14: What do you understand by credit processes and procedures?
_______________________________________________________
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(1)
Question 15: Documented processes and procedures are very important in a wellorganised company. Why is this?
Provide 6 reasons.
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(6)
Question 16: List at least 5 other important processes and procedures that apply to your
company apart from the below-mentioned
 Administrations.
 Legal collections.
 Administration orders.
 Rescinded loans.
 Suspension of interest.
 Write-off policy.
 Financial analysis of loan portfolios.
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Unit Standard SAQA 13426- Develop and implement credit policies, procedures and
control systems
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(5)
Question 17: Explain the procedure for each of the following policies:
 Responsibilities in the loan process.
 Write-off policy.
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(4)
Question 18: List the legislation that affects the credit environment.
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(3)
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Unit Standard SAQA 13426- Develop and implement credit policies, procedures and
control systems
QUESTIONNAIRE (Continued)
Question 19: Micro lending companies fall outside the Banks Act in contrast with
mainstream bank lending. Which body regulates micro lending companies?
_______________________________________________________
_______________________________________________________
(1)
Question 20: True or false?
 Micro finance companies may not accept deposits.
 They are not regarded as a bank and not regulated by the South African
Reserve Bank.
 The government set up the Micro Finance Regulatory Council in 1999 and
gave the control and supervision to this body.
______________________________________
(.5)
SPECIFIC OUTCOME 2: Break policies down to procedures and write the
procedures into a manual.
SPECIFIC OUTCOME 3: Design control systems that will support credit
policies and structure and profile of operations.
Question 21: List your company’s headings of the processes and procedures in logical
order in preparation for compiling a manual on processes and procedures for
the organisation.
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(9)
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Unit Standard SAQA 13426- Develop and implement credit policies, procedures and
control systems
SPECIFIC OUTCOME 3: Design control systems that will support credit
policies and structure and profile of operations.
Question 22: List 5 reasons why credit control is important from a company, industry and a
regulatory point of view.
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(5)
Question 23: List 10 examples of the core components of a credit control system.
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(5)
Question 24: For the “Credit decision” component of credit control, indicate 3 procedures
that relate to it.
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Unit Standard SAQA 13426- Develop and implement credit policies, procedures and
control systems
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(3)
Question 25: For the “Documentation” component of credit control, indicate 3 procedures
that relate to it.
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(3)
Question 26: For the “Cash accounting and management” component of credit control,
indicate 3 procedures that relate to it.
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(3)
TOTAL FOR SECTION 1 (For Assessor Use Only)
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90
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Unit Standard SAQA 13426- Develop and implement credit policies, procedures and
control systems
Section 2: OBSERVATION
Introduction
The Observation Assessment represents the physical gathering of information in the
workplace. In this section your assessor will observe and evaluate you completing
actual work tasks. These tasks correspond with the Unit Standard requirements and
should be performed at your work station or within your familiar working
environment. The assessor will complete a checklist for each action and allocate a
tick or cross in the space provided indicating whether you have successfully
completed the task/s or not. You will be assessed only once per assessment
criterion.
(For Assessor Use Only)
SECTION 2: OBSERVATION ASSESSMENT
QUESTION
DID THE LEARNER
√/X
NO
SPECIFIC OUTCOME 2: Break policies down to procedures and write the
procedures into a manual.
CCFO COMMUNICATING: Communicate effectively using visual, mathematical
and language skills both verbally and in writing.
CCFO ORGANISING: Responsible and effective self-organisation and
management: Use a systematic and logical approach implementing credit policies,
procedures and control systems.
1.
2.
Communicate effectively using visual, mathematical and
language skills both verbally and in writing when communicating
with internal and external customers?
Practice responsible and effective self-organisation and
management when dealing with internal and external
customers?
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Unit Standard SAQA 13426- Develop and implement credit policies, procedures and
control systems
SPECIFIC OUTCOME 3: The policies and procedures are collated into a written
manual.
CCFO COLLECTING: Collect, analyse, organise and critically evaluate
information: Formulate and motivate the main elements of a credit policy.
CCFO DEMONSTRATING: Demonstrate an understanding of the world as a set
of related systems: Discuss the importance to the micro finance institution of a
clear credit policy and a credit control system.
CCFO WORKING: Work effectively with others in a team / group / organisation/
community: Interact with different parties in the process of allocating responsibilities
for control activities.
3.
When interviewing a client who wishes to borrow money, under
the component of documentation in the credit control system, did
the employee follow the procedures when completing and
processing the documentation?
4.
Behave professionally in a client interaction; work effectively with
others in a team/ group/ organisation?
5.
Properly organise him/herself and his/her activities in preparation
for a client interaction?
The learner must achieve a tick in ALL of the questions in
order to be rated at COMPETENT
C
NYC
RESULT FOR SECTION 2 (For Assessor Use Only)
ASSESSOR COMMENTS:
ASSESSOR SIGNATURE:
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DATE:
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Unit Standard SAQA 13426- Develop and implement credit policies, procedures and
control systems
DECLARATION OF AUTHENTICITY
We the undersigned hereby declare that _________________________
has completed all of the specified requirements for assessment against
this unit standard.
SIGNED:
_____________________________
LEARNER:
_____________________________
DESIGNATION:
_____________________________
DATE:
_____________________________
SIGNED:
_____________________________
LINE SUPERVISOR: _____________________________
DESIGNATION:
_____________________________
DATE:
_____________________________
SIGNED:
_____________________________
ASSESSOR:
_____________________________
DESIGNATION:
_____________________________
DATE:
_____________________________
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