Unsecured Lending

Validating Documents

100

How do you calculate Gross monthly Income ?

- 100

200

How long does the account have to be opened for an advisor to use Direct payroll deposits into a Scotiabank account ?

• The deposit account must be open for a minimum of six months, and ownership must be in the name of the borrower. For joint accounts, the borrower must be one of the owners of the account.

300

What are the requirements for a Paystub to be valid ?

• cannot be handwritten
• cannot be a self-produced invoice, created through an online deductions calculator or appear to be self-made

• cannot appear altered and formatting should be consistent throughout

• must reference the employee's (client's) name and name of the employer

400

For unsecured lending, what are the requirements for a letter of employment to be an acceptable document ?

(Not eligible for Retail Unsecured Applications)

500

4 steps of income Verification

1. Obtaining documentation 

2. Validating the information 

3. Assessing the reasonability and sustainability of the income/employment 

4. Recording and retaining the verification

Limits

100

What is an SCEAs maximum unsecured lending limit ?

$15,000.00

200

Who would you go to if you do not know a policy ?

1. Ask AI -150 points

2. ASE - 200 points

3. BM/AM/CEL/OIC  - 100 points

300

What is the maximum total limit for retail unsecured products ?

Total : $100,000

SCL with access card: unsecured $75,000

Credit card: unsecured : $75,000 

Overdraft protection (ODP) : $5,000

400

What is credit limit for CEAs ?

up to $1,500

The unsecured credit limit under CEAs applies to auto-approved ODP with direct payroll deposit ONLY.

500

What is the maximum combined Business and Personal Unsecured BNS revolving credit a business and owner may have ?

$150,000.00

Eligible Income

100

What are the eligible income documents for a client who is a part time employee?

1. 
   Most recent paystub

AND

2. Any one of:

• Two most recent monthly bank account statements.

• Most recent Notice of Assessment (NOA)/CRA My Account Assessment.

200

What are the steps to verify letter of employment for a credit card over $5000?

No steps involved , Income not eligible to be used.

300

What are the documents required to be collected when client is on EI to apply for unsecured LOC ?

No documents , Client is not eligible to apply for credit on EI

Exceptions - Maternity / Parental leave 

400

What are the types of Non-taxable income ?

Income to First Nations and certain disability incomes.

500

What is permissible gross-up percentage (%)  for non-taxable income , taxable disability income and self employment ?

Non- taxable income :

   Income less than $30,000 - Up to 25%

   Income over $30,000 - Up to 35%

Taxable disability income(short term disability etc)

             Gross -up not permissible 

Self- Employment : Upto 15%