Case Study : Loan EMI calculator for Fintech XYZ

Submitted by : Naman Goyal (Sr. Business Analyst -

[email protected] 9887487456)

BRD, Functional and Non Funtional Requirements, Wireframes, Workflow

diagram, Business Rules, Basic Data dictionary, Use Case Diagram & User
stories

Executive Summary
Fintech XYZ wants to develop a tool that can help prospective customers calculate Loan EMI
amounts and total loan amount based on their input i.e. interest rate, loan amount & tenure.

Business Context
Fintech XYZ wants to help people visualize their EMI planning and wants to build trust with
customers who might want to consider buying and investing in services of Fintech XYZ

Current State
Fintech XYZ does not have an automated tool that can help calculate Loan EMI.

Future State
Fintech XYZ aims at developing a tool that can calculate Loan EMI amounts that can aid in
financial planning.

Business Requirement
A tool that can serve customers in sorting out their EMI calculation needs as well as establish
Fintech XYZ as a recognized brand amongst other Fintech companies.

Scope : Calculation of EMI amount (monthly), Total interest amount and Total amount to be
paid ( principal + Interest amount ) based on input of Loan Amount , Interest Rate & Tenure.

Submitted by : Naman Goyal, Sr Business analyst, 9887487456

[email protected]
USE CASE DIAGRAM

Submitted by : Naman Goyal, Sr Business analyst, 9887487456

[email protected]
WORKFLOW DIAGRAM

FINTECH XYZ EMI calculator

Business Rules

1) The requirements are based on filling up a form and respective fields. This has been
divided in primary fields (FR01, FR02, FR03 & FR04) and secondary fields (FR05, FR06
& FR07). Only if the primary fields FR03(City) and FR04(Interest Fixed/Variable) are
filled with input will the fields FR05(Loan amount), FR06(Interest Rate),
F07(Tenure) be activated for INPUT!!
1.1) If input FR02 is done first, then FR03 must only display cities inside of
state selected (FR02), If input FR03 input is done first then FR02 must
automatically be set to the connected state.

2) After inputs for FR05, FR06, F07 are activated the user can provide inputs in them.

Submitted by : Naman Goyal, Sr Business analyst, 9887487456

[email protected]
 2.1) If in FR04, the user has chosen a ‘fixed rate’ of interest then the calculation
of EMI must go through with the fixed rate of interest, ELSE ‘variable rate’ of
interest will be applied for the calculations. A fixed rate of interest means that the
rate remains same for the entire duration of the EMI’s. A variable rate of interest
changes based on market conditions and can be different in different financial
years. For calculation purposes of variable rate, the trend that is in the past shall
be taken into account for future years.

2.2) If in input FR02 the user has chosen ‘Karnataka’ or ‘Goa’ then he must be
exempted from paying the first EMI. (*Whether this is a complete exemption of
the amount or whether that amount has to be adjusted later is a question where
more clarity can be sought from Business. ** This rule can be understood more
clearly after interaction with the Business)

Functional and non funtional Requirements

An input form needs to be designed which should have the flexibility to be later linked to a
database. (*Currently the data input must be saved until the RESET Button is not pressed )

FR - Primary Field Field Type (Button Type) Description

Serial Fields or Name
No. Secondary **See NEXT table for
Fields characters allowed in
input

FR01 Primary Name Free Flowing Text Field (99 Text field for user to enter
characters allowed) Name. (check next table i.e.
data dictionary for
characters allowed)

FR02 Primary State Drop Down menu - All To choose Name of the
states of India state where the user is.

FR03 Primary City Drop Down menu - 3 tier To choose Name of the city
and 2 tier cities of India where the user is.

Two scenarios for FR02 and FR03 input (business rule 1.1)

INPUT FR02 FIRST >> then FR03 must only display cities inside of state selected (FR02)

INPUT FR03 FIRST >> then FR02 must automatically set to the connected state

*Helpful if a database with State names with connected cities is kept. States can have
separate tables with 2 columns. One for serial number and other for name of city.

Submitted by : Naman Goyal, Sr Business analyst, 9887487456

[email protected]
FR04 Primary Loan Drop Down with options Choose the type of loan
Type ‘Fixed’ & ‘Variable’ interest rate that the user
wants

The secondary fields will be accessible to the user only if FR03 and FR04 have been filled.
Otherwise they can be displayed in grey color. (Business rule 1)

FR05 Secondary Loan Free flowing Text field (only To entere the amount of
Amount numeric input) Loan that the user wants

FR06 Secondary Interest Free Flowing Text Field To enter theInterest Rate
Rate (only numeric input) that the user would opt for

FR07 Secondary Tenure Free Flowing Text Field To enter the length of
(in (only numeric input) months the user wants the
Months) loan for.

FR08 Secondary Button By clicking ‘Okay’ the

‘Okay’ calculation shall proceed
Clickable buttons ‘Okay’ using the entries
FR05,FR06,FR07

FR09 Secondary Button Clickable button ‘Reset’ By clicking, all the fields will
‘Reset’ be set to blank.

The output shall be a popup window with

EMI amount (monthly) :

Total interest amount :
Total amount principal + Interest amount =

*This shall be generated following business rules 2.1 and 2.2

ALSO
*The formula to be used for the calculation shall be provided by business. Whether
Compount interest has o be taken into account, more clarity on this shall be taken from
business *

FR10 Secondary Button Clickable button ‘Close By clicking the button the
‘Close Window’ window shall be closed.
Window’ The inputs in the fields shall
not be erased. By Clicking
okay the output window can
be opened again.

Submitted by : Naman Goyal, Sr Business analyst, 9887487456

[email protected]
Basic Data Dictionary

FR - Field Type (Text Allowed inputs

Serial Field, Free flow
Number dropdown )

FR01 Text entry Field, 99 UppercaseA-Z, Lowercase alphabets a-z, Space

Character length
*Input cannot begin with Space Character

FR02 Dropdown Menu Name of states

FR03 Dropdown Menu Name of states

FR04 Dropdown Menu ‘Fixed’ & ‘Variable’

FR05 Numeric entry field Numeric data upto 12 characters long permitted (Max value
= 9999999999999, only numeric, no decimals no comma)

FR06 Numeric entry field Numeric data upto 5 characters long permitted(only
with 2 decimal numeric, decimals allowed, no comma)
points allowed

FR07 Numeric entry field Numeric data upto 3 characters long permitted(max valve
999, only numeric, no decimals no comma)

USER STORIES

S No. User Story (system) Acceptance Criteria Business Rule

1 As the system, it want to Given the user begins to -

know the name of the input information, when the
user so that the basic user inputs his name, then
detail of the user can be the name field should
there. accept the entry.

2 As the system it want to Given the user is inputting Once the user chooses the
know the state of the user his credentials, when the state, the city field should
so it can decide what user selects the state, the have entries only related to
criteria is to be applied entry should be accepted. that particular state.
while calculating EMI.

3 As the system it want to Given the user is inputting Only if the city has been
know the city of the user his credentials, when the input and the interest rate
so it can decide what user selects the city, the preference has been input
criteria is to be applied in entry should be taken. If should the secondary
EMI calculation. the city is filled out first credentials be available for

Submitted by : Naman Goyal, Sr Business analyst, 9887487456

[email protected]
 before the state then all input. This is business rule
the cities in India must be 1.
displayed in the pulldown
menu and after the
selection of the city takes
place the connected state
should automatically be
updated.

4 As the system it want to Given the user is inputting Only if the city has been
know the preference of his credentials, when the input and the interest rate
Loan type (Variable/Fixed) user selects the interest preference has been input
by the user so that it can rate preference as variable should the secondary
be taken into account or fixed, his input must be credentials be available for
while EMI calculator is accepted. input. This is business rule
done. 2.

User Story (End user) Acceptance Criteria Business Rule

5 As a user who has Given the user wants to The business would provide
entered his primary calculate the monthly EMI, the formula for calculating
credentials, I now want to interest amount and total the monthly EMI, interest
enter the loan amount so amount, when the user amount and total amount. It
that the EMI calculation enters the loan amount, should be used. Also
can be done by the then that input must be Business rule 2.1 and 2.2
system. used for calculation. must be followed.

6 As a user I want to enter Given the user wants to The business would provide
the interest percentage so calculate the monthly EMI, the formula for calculating
that the EMI calculation interest amount and total the monthly EMI, interest
can be done by the amount, when the user amount and total amount. It
system. enters the interest should be used.Also
percentage, then that input Business rule 2.1 and 2.2
must be used for must be followed.
calculation.

7 As a user I want to enter Given the user wants to The business would provide
the tenure in months so calculate the monthly EMI, the formula for calculating
that the EMI calculation interest amount and total the monthly EMI, interest
can be done by the amount, when the user amount and total amount. It
system. enters the tenure in should be used.Also
months, then that input Business rule 2.1 and 2.2
must be used for must be followed.
calculation.

Submitted by : Naman Goyal, Sr Business analyst, 9887487456

[email protected]
Non-Functional Requirements

Performance - The platform or solution where this tool will be deployed must be able to handle
100s of request at the same time. There should be no crashing.

Security - The details submitted by the users must be secure in the database and should not be
accessible without authorized access.

Scalability - If this solution needs to expanded to a much more detail analysis of EMI and case
by case comparison, it should be possible.

Portability - If a change in platform is desired in the near future, the solution should be in the
shape that it can be transferred onto a new platform without any change.

Usability - The solution must be usable by an average user. The flow and user experience must
be seamless. Instructions must be provided at places where there could be a gap in
understanding of the average user.

Maintainability - Over time the solution should stay operational. Regular checks of its being
operational and devoid of error state must be checked.

Assumptions
Users must have basic knowledge and understanding of how EMI’s are dependent on interest
rates and there are two types of interest rates fixed and variable.

Submitted by : Naman Goyal, Sr Business analyst, 9887487456

[email protected]
Wireframe

FINTECH XYZ EMI TOOL

Name

State Andhra Pradesh *(only 4 states in dropdown just for ref)

City* Names of Cities of India

Loan* Fixed
Type

*Fields with * are mandatory to be filled.

(* Following Business rule 1.If there is valid entry on ‘City’ field and ‘Loan Type’ field the below
fields shall be active ELSE they can be light gray color and not activated. Once activated they
can be in the normal black color. This Message is only for ref, wont be displayed in the actual
built*)

Loan Amount (only number) :

Interest Rate : (number till 2 decimal

point)

Tenure ( only numbers

cannot be 0 or 1 or decimals/commas) :

OKAY RESET

Submitted by : Naman Goyal, Sr Business analyst, 9887487456

[email protected]
Wireframe : Output

EMI amount (monthly) :

Total interest amount :

Total amount principal

+ Interest amount :

Close Window

** Sliders and graphs can be added for better visualization but currently this is
OUT OF SCOPE***

Dependencies
The user must be internet savvy to an extent that he can understand and operate this tool.

Submitted by : Naman Goyal, Sr Business analyst, 9887487456

[email protected]