Eligibility scoring is a great way to automate the decision-making process in applications like loan pre-qualification forms. This method helps determine whether an applicant qualifies for a loan by calculating a score based on user inputs like income or loan amount requested.
In this article, we will walk you through the steps to build a loan pre-qualification form with eligibility scoring in Formaloo.
What is Eligibility Scoring?
Eligibility scoring is a process that assigns numerical points based on criteria like income, requested loan amount, or other important factors. These scores help automate decision-making by determining whether an applicant meets the required conditions.
For example, in a loan application, you can add or subtract points based on the applicant's income and loan request to decide if they qualify.
1. Create a new loan application form
Start by creating a new form. Go to your dashboard, click on + New Formaloo and choose Form.
This will open a fully customizable dashboard with form's template. click on edit form to go to the editor.
2. Add custom fields
For this loan application form, we'll add the following fields:
Text field: to ask for name and basic information;
Email field: to ask for their email address;
Number field: to ask for the yearly income (for example - family income in USD);
Variable field: to calculate the eligibility, which will then be answer piped on the ending pages.
You can also add different fields that fit your needs. For this tutorial, we'll add these fields.
3. Set up logic for the form
Now that the form fields are set up, we need to configure the eligibility scoring using logic.
💡 Variables are placeholders for hidden, calculated values or data. They allow you to store and process information within your form, which can be used dynamically with other form components, such as calculated value controls and logic-based rules.
You can define the rule however you'd like. For example, if the number written in the requested amount (USD) field is less than 10,000, add 10 points (for example) to Eligibility (which is a variable field).
So the variable field will accumulate points and in the end we will get to decide that if a variable field has the greatest amount of points (maximum amount) show a specific ending page. And vice versa - if it has the least points show another ending page. And so on.
4. Customize ending pages based on eligibility score
Now you can add as many ending pages as you'd like. For this example, we'll have 2 - eligible and no eligible.
To display the value on the ending page, we will need to answer pipe ID of the variable field (Eligibility).
For example, the message: "Unfortunately, you are not eligible for this loan.
Your eligibility score is @eligibility".
You can also check out the Logic Map in Formaloo to visualize and debug your form's logic and rules.
Watch this video to avoid some of the common mistakes in logic 👇
Benefits of using eligibility scoring
Automated decision-making: Eligibility scoring reduces the need for manual review by instantly assessing whether an applicant qualifies for a loan.
Customizable: You can easily adjust the score calculations and criteria to match your specific lending conditions.
Seamless experience: Applicants receive instant feedback, improving their experience and helping you manage your leads more efficiently.