Skip to content

Latest commit

 

History

History
88 lines (58 loc) · 3.28 KB

DOC01-REQUIREMENTS.md

File metadata and controls

88 lines (58 loc) · 3.28 KB

BANK LOAN ELIGIBILITY - REQUIREMENTS

As a bank, we need to be able to determine loan eligibility for a given person (loan applicant)

Input and output

Loan eligibility feature enables the user to provide:

  • the loan applicant's personal code (SSN)
  • a requested loan amount
  • a requested loan period (in months)

and responds to the user with

  • a decision (negative or positive eg loan approval or denial),
  • the maximum loan amount (available for loan, for given person)
  • the allowed loan period (either the one requested, or if not eligible
    for a specific loan request, the range of periods)

Detailed constraints

  1. As part of loan eligibility, we need to determine - what would be
    the maximum allowed loan amount, regardless of the loan applicant
    (a person) for whom the loan was requested.

    • I.e., if a person applies for 4000 €, but we determine that their credit score
      allows for a larger amount,then the result should be the larger sum,
      which we would approve

    • Or - in reverse, if a person applies for 4000 € and we would not approve it -
      then we want to return the largest amount which we would approve (i.e. 2500 €)

  2. If the requested loan amount is not permitted for the requested period,
    then we should try to determine a new suitable period, given the requested
    loan amount and the loan applicant's SSN.

    • In real life we should connect to external registries and compose
      a comprehensive user profile - but for the sake of simplicity, this part
      can be a hardcoded result for certain personal codes.

  3. Currently we only need to support 4 different scenarios

    • a person has debt

    • or a person falls under one of 3 different segmentations.

    • I.e.:

      49002010965 - debt
49002010976 - segment 1 (credit_modifier = 100)
49002010987 - segment 2 (credit_modifier = 300)
49002010998 - segment 3 (credit_modifier = 1000)

  4. If a person has debt, then we do not approve any amount.

  5. If a person has no debt then we take the segment identifier (credit_modifier)
    and use it for calculating person's credit score - taking into account
    the requested input

  6. Minimum input and output sum can be 2000 €
    Maximum input and output sum can be 10000 €
    Minimum loan period can be 12 months
    Maximum loan period can be 60 months

  7. Scoring -
    For calculating credit score, we currently need just a really primitive algorithm:

    • divide the credit modifier with the loan amount

    • multiply that result with the loan period in months, eg:

      creditScore = (creditModifier / loanAmount) * loanPeriod

    • If the result is less than 1 - then we would deny the requested amount.

    • If the result is larger than or equal to 1 - then we would approve
      the requested amount.

  8. We need a Web UI with a form for the described input data, along with
    a calculation (submit) button

  9. When a loan request is submitted and processed, the form should display
    the loan eligibility decision (approved / denied), along with the details, based on
    the constraints described above

    • Technically - the WEB UI should call a single REST API service, eg:

      POST/api/loan/eligibility