Resources & Qualifiers
How old must a customer be to apply for a loan or line of credit over the phone?
What is 18?
T/F: A open-ended product can also be referred to as an installment loan.
What is False?
T/F: A closed-ended product can also be referred to as an installment loan.
What is True?
Explain what an APR is and how it works
Annual Percentage Rate (APR) is the percentage of interest assessed on a loan, line of credit and/or credit card. This is the yearly rate on the account.
What type of product would you recommend for a customer who does not know how much money they will need to borrow, no immediate need, would like a safety net, or would like to borrow over the course of time?
What resource do we have in place to assist non-English speaking customers in applying for a loan/line of credit?
What is TransPerfect?
T/F: A customer only pays interest on the borrowed balance of a line of credit.
T/F: When quoting an installment loan, we will always quote out the shortest term available.
What is False?
Explain secured direct lending
Secured direct lending involves the use of collateral which may be forfeited in cases of failure of repayment
What type of product would you recommend for a cx who needs to borrow a specific amount, for a specific project or item?
Closed-ended products: Installment Loan
Where would you direct a customer who would like to review and compare loan/lines of credit options on their own time?
When quoting a line of credit, how would you calculate the monthly payment?
Loan amount * 3%
How can the Rate Sheet be accessed?
Direct Lending Hub - Under Related Resources & Links
Explain unsecured direct lending
Unsecured direct lending has no collateral and uses a credit's promise of repayment
Pretend like I am a customer: What is the difference between a HELOC and a HELOAN?
____________________________
Before quoting a product to a customer, what are the three items you must know?
Amount, Purpose and Location
Calculate the minimum monthly payment for a $1000 line of credit
30
When quoting an auto loan, what is the product code for a new auto?
ANISF
Installment loan: a loan for a specific amount, with monthly payments
Line of Credit: borrow what you need, pay off as you use, credit will become available to use as payments are made
Role Play: Choose a classmate, you are the banker and they are the customer. Ask identifying questions to uncover needs and recommend a product to them.
______________________
If a customer does not qualify for a particular account type, and after advising that to the cx and they would still like to apply, how should you proceed?
Take the application - We can never deny someone the right to apply
T/F: The minimum monthly payment on a $10,000 line of credit is $500.
False
For an auto loan, what are the vehicle requirements?
90,000 miles or less
What is a Prime Rate?
The Prime Rate is the Annual Percentage Rate set by the Federal Reserve (FED)
Your customer is looking to install a pool, make a few upgrades to his kitchen, and replace the carpet in his home. He has gotten quotes, but has not made any commitments just yet. It may be something that will get done over the course of the next few years. What product would you recommend?
HELOC if he wants to pull from his equity (secured)
Line of Credit (unsecured)