ABSTRACT
This research study focused on Automated Loan Record Management System. A loan record system in the context of this research study is an automated system that enables the user of the application to capture process and save loan information to a database in order to facilitate easy retrieval an updating of loan information. Lending is one of the major activities of most banks and to do this effectively, there is need to have a database management application that can store large volume of loan details of customers. Maintaining records of loans given to customers in a manual system is associated with several disadvantages such as delay in retrieving needed loan information and updating loan information. It is therefore imperative that loan lending software be developed to solve the problem. The programming language used for the development of the system is Visual Basic 6.0.
TABLE OF CONTENT
Cover Page – – – – – – – – i
Title Page – – – – – – – – – ii
Dedication – – – – – – – – – iii
Certification – – – – – – – – iv
Acknowledgement – – – – – – – – v
Table Of Content – – – – – – – – vii
CHAPTER ONE: INTRODUCTION
1.0 Introduction – – – – – – – – 1-2
1.1 Theoretical Background – – – – – – 3
1.2 Statement of the Problem- – – – – – 3
1.3 Aim and Objectives of the Study – – – – 4
1.4 Significance of Study – – – – – – – 4
1.5 Scope of the Study – – – – – – – 4
1.6 Organization of Research – – – – – – 4-5
1.7 Definition of Terms – – – – – – 5
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction – – – – – – – – 6
2.1 Loan Portfolio Objectives – – – – – 6
2.2 Strategic Planning for the Loan Portfolio – – – 7
2.3 Financial Goals – – – – – – – 8
2.3.1 Risk Tolerance – – – – – – 9-10
2.3.2 Portfolio Risk and Reward – – – – 10-12
2.3 The Loan Policy – – – – – – – 12-14
CHAPTER THREE: SYSTEM ANALYSIS AND DESIGN
3.0 Introduction – – – – – – – – 15
3.1 Research Methodology – – – – – – 15
3.2 System Analysis – – – – – – – 15
3.2.1 Analysis of the Existing System – – – – 16
3.2.2 Problem of the Existing System – – – – 16-17
3.2.3 Analysis of the Proposed System – – – 17
3.2.3.1 Advantages of the Proposed System – 17
3.2.3.2 Disadvantages of the Proposed System 17
3.3 System Design – – – – – – – 17
3.3.1 Input Layout – – – – – – 18
3.3.2 Algorithm – – – – – – – 18
3.3.3 Program Flowchart – – – – – 18-22
CHAPTER FOUR: SYSTEM IMPLEMENTATION AND DOCUMENTATION
4.0 Introduction – – – – – – – – 23
4.1 System Design Diagram – – – – – – 23
4.2 Choice of Programming Language – – – – 24
4.3 Analysis of Modules – – – – – – 24
4.4 Programming Environment – – – – – 25
4.5 Implementation – – – – – – – 25
4.6 Software Testing – – – – – – – 26
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.0 Introduction – – – – – – – – 27
5.1 Constraint of the Study – – – – – – 27
5.2 Summary – – – – – – – – 27
5.3 Conclusion – – – – – – – – 28
5.4 Recommendation – – – – – – – 28
References
Appendix A
Appendix B
CHAPTER ONE
- Introduction
In finance institution like banks, loan is the lending of money from one individual, organization or entity to another individual, organization or entity. It entails the redistribution of financial assets over time, between the lender and the borrower (Furst et al., 2005). In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money or the lender at a later time. Typically, the money is paid back instalments, or partial repayment in an annuity, each instalment is the same amount. The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent. Acting as a provider of loans is one of the principal tasks for financial institutions. For other institution issuing of debt contracts such as bonds is a typical source of funding. Lending is the principal business activity for most commercial banks, the loan portfolio is typically the largest asset and the predominate source of revenue. As such, it is one of the greatest sources of risk to a bank’s safety and soundness. Whether due to lax credit standards, poor portfolio risk management, or weakness in the economy, loan portfolio problems have histories been the major cause of bank losses and failures.