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 gross
A 38 year old employee who status income required.
wants to apply for a home loan.
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 age
P6,000 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

Home Loan Requirements

- Completely filled-out application Customer X
form
-Photocopy of one (1) valid ID
matching application details,
-Acceptable IDs: Passport, Driver’s
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
 Process Logic (Procedural Solution)

Giving solution separately

Loan
START
Requested
By
Customer Y

Is the Does
Assess Customer Y
Evaluate financial No
status of collateral, have
borrower’s
the guarantees Collateral,
financial guarantees
customer and other
status Y stable? and other
security.
securities?

Yes

Is customer
Y qualified
to proceed Negotiate the
in terms of the
negotiation loan to
of loan
borrower’s
terms?
No

Process the
Will documents
Does
Customer Y related to the
able to
customer Y No
loan. loan request
comply
attain
with the
approval?
documents?

END
Yes Approve the
loan
transaction
Loan Request Declined
 Loan
START
Requested
By
Customer
X

Assess
Evaluate Yes
Is the financial status of collateral, Does Customer X have
borrower’s
the customer X stable? guarantees Collateral, guarantees and
financial other securities?
and other
status
security.

Yes

Is customer X qualified to Negotiate the

proceed in negotiation of terms of the
loan terms? loan to
borrower’s
Yes

Process the Does customer X loan

Yes
documents request attain approval?
Will Customer X able to
related to the
comply with the
documents? loan.

Yes

Approve the END

loan
transaction
Loan Request Approved