> For the complete documentation index, see [llms.txt](https://jeyabalajis.gitbook.io/simple-rule-engine/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://jeyabalajis.gitbook.io/simple-rule-engine/examples-from-lending-industry.md).

# Examples from Lending Industry

### Decision Rules

In the lending industry, a simple decision matrix is often involved with a few parameters to arrive at an *in-principle approval.*

An example decision matrix is as follows:

#### Simple Decision matrix

<table data-view="cards" data-full-width="true"><thead><tr><th>Bureau Score</th><th>Marital Status</th><th>Business Ownership</th><th>Decision</th></tr></thead><tbody><tr><td>Between 650 and 800</td><td>Married or Unspeficied</td><td>Owned by Self or Owned by Family</td><td><strong>GO</strong></td></tr><tr><td>Less than 650</td><td></td><td></td><td><strong>NOGO</strong></td></tr><tr><td>greater than 800</td><td></td><td></td><td><strong>GO</strong></td></tr></tbody></table>

#### Complex Decision Matrix

There are also scenarios that involve a complex decision tree. In the below example, the applicant's age sits at the top of the decision tree. Based on the applicant's age, additional conditions are involved, resulting in a *GO or a NOGO* decision.

<table data-view="cards" data-full-width="true"><thead><tr><th>Applicant Age</th><th>Applicant Ownership</th><th>Business Ownership</th><th>Decision</th></tr></thead><tbody><tr><td>>=35</td><td>in [Owned by Self, Owned by Family]</td><td>in [Owned by Self, Owned by Family]</td><td><strong>GO</strong></td></tr><tr><td>>=35</td><td>in [Owned by Self, Owned by Family]</td><td>in [Rented]</td><td><strong>GO</strong></td></tr><tr><td>>=35</td><td>in [Rented]</td><td>in [Owned by Self, Owned by Family]</td><td><strong>GO</strong></td></tr><tr><td>>=35</td><td>in [Rented]</td><td>in [Rented]</td><td><strong>NOGO</strong></td></tr><tr><td>&#x3C;35</td><td>in [Rented]</td><td>in [Rented]</td><td><strong>NOGO</strong></td></tr><tr><td>&#x3C;35</td><td>in [Owned by Self, Owned by Family]</td><td>in [Rented]</td><td><strong>NOGO</strong></td></tr><tr><td>&#x3C;35</td><td>in [Rented]</td><td>in [Owned by Self, Owned by Family]</td><td><strong>NOGO</strong></td></tr><tr><td>&#x3C;35</td><td>in [Owned by Self, Owned by Family]</td><td>in [Owned by Self, Owned by Family]</td><td><strong>GO</strong></td></tr></tbody></table>

* When the applicant's age is >=35, either of (applicant ownership or business ownership) must be Owned.
* When the applicant's age is <35, both (applicant ownership and business ownership) must be Owned.

The above are some examples of how specific facts about a loan applicant are used in a series of rules to decide whether to proceed with the loan application.

In the next section, let us look at an introduction of [simple-rule-engine](https://pypi.org/project/simple-rule-engine/) Python library.