Decision-Making Task: Loan Application Approval Flow

Scenario:

Your team is responsible for building a loan application decision engine for a bank. You are to design a flowchart or decision tree that evaluates whether a customer’s loan should be approved, sent for manual review, or rejected based on certain criteria.

Requirements & Conditions

You must create a flow that evaluates these parameters:

1. Customer Age

   • If less than 18 → Reject

   • Else → Continue

2. Credit Score (scale of 300–850)

   • If < 500 → Reject

   • If 500–700 → Send to Manual Review

   • If > 700 → Continue

3. Monthly Income

   • If less than ₦100,000 → Reject

   • Else → Continue

4. Loan Amount Requested vs Monthly Income

   • If loan amount > 5× monthly income → Reject

   • Else → Continue

5. Employment Status

   • If “Unemployed” → Manual Review

   • If “Self-Employed” → Manual Review if income is below ₦200,000

   • If “Employed” → Continue

6. Final Decision

   • If all above conditions passed → Auto Approve

Deliverable

Each student/team must:

• Draw a flowchart (or write pseudocode or decision tree logic) showing all paths and conditions. – You can

• Indicate:

  • What happens when conditions are True or False

  • The final outcome for each path: Approve, Reject, or Manual Review

NB: Watch below video to learn how to use the DIAGRAM.NET software for this Task.