NAB Lending and Credit 3

Question 1

What is typically used as collateral for a NAB secured personal loan?

Accepted Answer

A vehicle or other tangible personal asset

Answer

Secured personal loans commonly use a tangible asset such as a car as collateral, reducing lender risk and typically lowering the interest rate.

Question 2

Which NAB business lending product is best suited for managing short-term everyday cash flow shortfalls?

Accepted Answer

Business overdraft

Answer

A business overdraft provides flexible access to funds beyond the account balance, allowing businesses to manage temporary cash flow gaps.

Question 3

What does a NAB credit card balance transfer allow a customer to do?

Accepted Answer

Move existing credit card debt from another lender onto their NAB card

Answer

A balance transfer lets customers consolidate credit card debt from other institutions onto a NAB card, often at a promotional lower interest rate.

Question 4

When assessing a business loan application, which financial documents does NAB primarily review to evaluate viability?

Accepted Answer

Business activity statements and profit and loss statements

Answer

NAB reviews BAS and profit & loss statements to understand actual business revenue, expenses, and profitability before making a lending decision.

Question 5

For NAB personal loans, which factor most significantly influences the interest rate offered to a customer?

Accepted Answer

The borrower's credit history and overall risk profile

Answer

A borrower's credit history and risk profile are the primary determinants of the personal loan rate, as lenders price for perceived risk.

(NAB) National Australia Bank Practice Test