tutorial

Tutorial questions: Week 1

Prior to discussing the following scenarios, a general discussion on CAMPARI - Character, Ability, Margin, Purpose, Amount, Repayment, Insurance/Security would be appropriate.

1. A 19 year old unemployed male is applying for a credit card with a limit of $1,500.

2. A 23 year old female on a disability allowance due to her physical disability is applying for a $2,000 line of credit to purchase a computer and associated hardware and software.

3. A 65 year old male pensioner with no significant savings applied for a line of credit to purchase a $25,000 motor vehicle.

4. A 35 year old single mother of two young children, one seven and the other four is applying for a $10,000 line of credit to pay off outstanding debts. The loan applicant does not hold a full time job and cannot afford to pay for child care.

5. Mr. A has been banking with you for over five years. His track record of repaying back his outstanding debts is not very promising as on several occasions you had to chase him for payment. He is now in full-time employment earning $60,000 a year and is applying for a $15,000 line of credit to take his family for a holiday to Bali.

6. A 16 year old applied for a credit card with a limit of $500 for school expenses.

7. A 22 year old international student applies for a line of credit of $4,000 to embellish his house with hi-fi and other related equipment. During the discussion he mentions that he will be going back home for his sister’s wedding where he intends to look for work also whilst he is there.

8. Ms. A has applied for a line of credit of $20,000 and the bank has approved such a facility, however she refuses to pay the 0.05% loan origination fee. She claims that other banks is prepared to give her the same loan without the fee.

9. Mr. B applied for a $20,000 line of credit to buy a car costing $25,000 and mentions that the other $5,000 would be withdrawn from his credit card.

10. Ms. B applies for a $350,000 home loan to buy an apartment in the city. No mention of legal fees or stamp duty fees are part of the loan request.

11. An unemployed 35 year old male is applying for a line of credit of $30,000 to finance hid day-to-day expenses. He is offering a term deposit that he has as security. The loan application is 100% secured.

12. An employed 35 year old male is applying for a line of credit of $30,000 to finance his day-to-day expenses. He has no collateral but his full time employment yields him $80,000 a year.