Instruction: Create a Specific business procedure based on business logic (declarative

solution) and process logic (procedural solution).

Business Problem

Car loans : Client should have a gross salary or gross income of P600, 000

Annually and have at least P5, 000 balance on his/her savings

account.

Home loan : Client should have a gross salary or gross income of P200, 000

Annually and have at least P7, 000 balance on his/her savings

account.

 Client X, a business owner that has a gross income of P50, 000 monthly wants to
apply for a car loan. Client X has a saving account balance of P6, 000.
 Client Y, a 38 year old employee with a salary of P15, 000 monthly wants to
apply for a home loan. Client Y has a saving account balance of P6,000.
 Business Logic (Declarative Solution)

Determine Client's
Eligibility for
Determine Client's Home loan
Eligibility for Car Customer Y
loan
Customer X
Eligibility Client's status
Customer Y Customer Y
Eligibility Client's Status

Customer X Customer X Client's

Qualification
Customer Y
Client's
Approval of loan Approval of
Qualification
loan
Customer X Customer X
Customer Y

Process Process
Complete Complete

Person Case Qualifications Condition Conclusion

Financial Good Had met the gross
A business owner who wants to status income required.
Customer apply for a car loan. Gross
X income (P50K monthly) Credit Rating Good AA/ High Grade
50K×12=600k Documents Good Complete
Saving account balance is Approval Eligible Eligible
P6,000
Financial Bad Did not met the
A 38 year old employee who status gross income
wants to apply for a home loan. required.
Gross Salary (P15K monthly) Credit Rating Bad BBB+
Customer 15K×12=180K Collateral Good Business
Y Saving account balance is Age Good Have reached the
P6,000 age qualified.
Documents Good Complete
Approval Ineligible Ineligible
 The figure below is a simplified design showing how lending firm initiates a loan
or how loan approval process is implemented.

Process Logic (Procedural Solution)

P600K Customer X Car Loan

annually
Step 1: EVALUATION
Evaluate the financial
status of the borrower. Unsecured
Step 2: ASSESSMENT loan

Assess gurantees,
P180k Annually collateral and other
security. Step 3: NEGOTIATION
Negotiate the terms of
Secured
loan
the loan with the
Customer Y Secured loan borrower.
Home Loan

Car Loan
Requirements
-Photocopy of one (1)
valid ID matching
application details (e.g.
Passport, Driver’s
License, SSS, PRC, Step 4: PROCESSING Step 5: APPROVING
OWWA ID, OFW ID,
and Seaman’s Book) Process the documents Approve the loan
For Foreigners, Alien related to the loan. transaction.
Certificate of
Registration with Work
Permit

Approved
Home Loan Requirements
- Completely filled-out application Customer X
form
-Photocopy of one (1) valid ID
matching application details,
-Acceptable IDs: Passport, Driver’s Declined
License, SSS, PRC, OWWA ID, Customer Y
OFW ID, Seaman’s Book
-Marriage contract, if applicable

Collateral Documents
• Photocopy
• Lot Plan with Vicinity Map
• Photocopy of Tax Declaration