SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Develop and implement credit policies, procedures and control systems 
SAQA US ID UNIT STANDARD TITLE
13426  Develop and implement credit policies, procedures and control systems 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04  10 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard is aimed at people who already work in the micro finance sector and who need to function at an operational management level.

It provides the learner with a range of process skills from designing and building to implementing credit policies and control procedures and policies.

The qualifying learner is capable of defining, structuring and implementing credit polices, procedures and control systems.

Once a person has completed this unit standard, he/she will be able to:
  • 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. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    CORE LEVEL 4 Unit Standards: `Make the financing decision and disburse the loan`; `Collect and manage loans`. 

    UNIT STANDARD RANGE 
  • All categories of micro-enterprise credit up to R50 000 will be included.
  • The unit standard applies in both rural and urban contexts in South Africa.
  • Knowledge of best practice in credit policies and control systems. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Determine the essential elements of a credit policy. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The importance of a clear credit policy to the micro finance institution is explained in accordance with industry and company requirements. 

    ASSESSMENT CRITERION 2 
    2. The main elements of a credit policy are formulated and motivated (and at least the target market, types of loans, responsibilities in the loan process, interest rates, collateral and repayment rules and default management) in accordance with industry practices and the regulatory environment. 

    ASSESSMENT CRITERION 3 
    3. A credit policy is designed in accordance with the type of micro finance institution and its products and including the main elements listed above. 

    SPECIFIC OUTCOME 2 
    Break policies down to procedures and write the procedures into a manual. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Policies are reflected in procedures in alignment with company and regulatory requirements. 

    ASSESSMENT CRITERION 2 
    2. The procedure for each element of the credit policy is explained in line with the policies developed. 

    ASSESSMENT CRITERION 3 
    3. The policies and procedures are collated into a written manual. 

    SPECIFIC OUTCOME 3 
    Design control systems that will support credit policies and structure and profile of operations. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The importance of a credit control system to a micro finance institution is explained in terms of industry, company and regulatory requirements. 

    ASSESSMENT CRITERION 2 
    2. The core components of a typical credit control system are identified and explained including identifying the activity to be financed; the credit decision; procedures; documentation; disbursement; cash accounting and management; review and monitoring and auditing. 

    ASSESSMENT CRITERION 3 
    3. The sub-elements of each component are listed, responsibilities for control activities are allocated and the process of monitoring the performance of these responsibilities is described and included in the written manual. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    1. An individual wishing to be assessed (including through RPL) against this unit standard may apply to an assessment agency, assessor or provider institution accredited by the relevant ETQA.
    2. Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.
    3. Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA.
    4. Moderation of assessment will be conducted by the relevant ETQA at its discretion. 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    The learner can:
  • Understand and apply credit policy guidelines.
  • Analyse financial and other information in portfolio management.
  • Understand the link between policy, procedure and control systems.
  • Understand the importance of follow-up. 


  • Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD 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. 

  • UNIT STANDARD CCFO ORGANISING 
    Responsible and effective self organisation and management:
  • Use a systematic and logical approach implementing credit policies, procedures and control systems. 

  • UNIT STANDARD CCFO COLLECTING 
    Collect, analyse, organise and critically evaluate information:
  • Formulate and motivate the main elements of a credit policy. 

  • UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively using visual, mathematical and language skills both verbally and in writing:
  • Write the credit policies and procedures into a manual. 

  • UNIT STANDARD 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 and a credit control system. 

  • REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  23433   Further Education and Training Certificate: Micro Finance  Level 4  Level TBA: Pre-2009 was L4  Reregistered  2023-06-30  BANKSETA 
    Elective  23453   National Certificate: Micro Finance  Level 3  NQF Level 03  Reregistered  2023-06-30  BANKSETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.