Chapter II

Review of related works and studies

The literature and studies cited in this chapter tackle the possibility of loan management. This

studies relates to financial management systems and, more specifically, to data

processing methodology for effecting an improved capital structure in financial

institutions.

Kingsley O. et al. (2013) state that the concept of automation has been variously applied in most

computing fields. This involves utilization of computing or electronic devices to

undertake the tasks that are being handled by people. It is a pertinent factor on a

profitable and soundly run financial institution. Financial transactions through manual

system of operation are prone to errors and unimagined complexities, making it so

difficult a task maintaining all entries of users account, search records of activities,

handle loan deduction errors and generate reports. Computers running automated system

are targeted towards eradicating the menace hence making the underlying activities

efficient and providing the fast response needed.

While Dhar et al. (2009) describe a browser based automated loan system includes a loan engine

offered individually to financial institutions to set up, operate and manage loan product

offerings, a consumer website interface having a loan application form with data fields

relevant to the loan product offerings, a designer component that establishes tasks in the

form of a loan process checklist associated with each loan product offering, and a

workflow engine for automatically evaluating the loan application form using the

applicable loan process checklist in conjunction with rules, logical mathematical

 computational components, and risk based offer configurations for generating an instant

loan offer when a borrower qualifies.

In addition to, Green et al. (2003) also said that an automated system and method for reviewing

and assessing compliance with legal compliance requirements for loan application. Loan

application data is extracted from client loan origination systems and transmitted as a

loan information file over a secure communication network to an automated compliance

assessment system server where the loan information file is audited for compliance with

Federal, state and local legal compliance requirements. The loan information file is

reviewed for legal compliance requirements imposed by Federal, State, and local

jurisdictions, as well as licensing requirements that the client loan company and related

personnel must satisfy.

 Chapter III

Description of CIERA LENDING CORPORATION MANAGEMENT SYSTEM

The CIERA LENDING CORPORATION MANAGEMENT SYSTEM is used for

computerization of back office activities involved in lending processing work. CIERA

LENDING CORPORATION MANAGEMENT SYSTEM is a very efficient vb.net vs12 project

to handle all loan related transaction records efficiently. This is very helpful for loan providing

organization for costumer registration, EMI calculation and loan approval process.

3.0 System overview

CIERA LENDING CORPORATION MANAGEMENT SYSTEM is a very efficient vb.net

project that can handle all the loan approval and management related task easily. The GUI of this

project is very simple and user friendly. Any user with having a little knowledge about working

on windows platform can easily operate this software. Loan automation project uses sql server

database has robust stability for storing all transaction details in efficient way.

3.1 System objectives

It deals with the automation activities performed while granting new loan.

It keeps record of various kinds of loan, their customers and monthly instalments.

All the master record of the loan automation system like loan type, loan percentage, city

and state are maintained by admin of the organization.

Customer record entry is done by the concern staff along with his all details and loan type

applied for.

After approval customer is given a unique loan id.

Costumer pays EMI to that loan id.

 This system also has EMI calculator for easy calculation.

3.1.1 General objectives

The purposed system has been designed to an offline access for the back office activities of

lending/loan finance company which offers any type of loan. Administrator manage customer

information database more efficiently, Loan details, and maintain loan type and interest rate

information. Admin can use calculator to give exact payable loan amount for the customer &

generate all these work info as a report of each customers.

3.1.2 Specific objectives

The main objectives of CIERA LENDING CORPORATION MANAGEMENT SYSTEM

project are as follows:

Facility to store the information of new customer, different types of loans provided by the

corporation, interest rates of different types on loan etc.

Facility to calculate EMI based on loan amount and period of repayment.

Facility to keep record of all loans given by the corporation and their current status, also

keep record of loan repayment and late fine.

Facility to generate different reports, which are helpful for the management in decision

making.

Facility to change users password account.

3.2 System Scope and Limitation

3.2.1 Scope

The propose automation of cooperative focuses to determine the cash flow and loans of each

members. The system will secure members profile where the system can give individual

inventory for each member. The system can generate members statement of accounts and

dividend or profit sharing for members.

3.2.2 Limitation

This system is limited to perform online to observe confidentiality of the accounts. The system

limited to be access by the members, thus, this only allows the administrator to operate the

system. This also excludes the generation of the financial statement of accounts and cash flows.
 ABSTRACT

The existence of many sophisticated computer systems and various innovations that we find in

this Information Age justifies the age old saying that necessity is the mother of all inventions.

Hence, the developer should develop the system in a most reliable way to facilitate processing of

every members transaction and queries. Thus, the system will automatically check the status of

each member/staff once they login making it not time consuming for both of them. In that case

we proposed the Lending management system that will provide easier and faster of loan

management processes for CIERA LENDING CORPORATION. To assures that the clients will

be satisfied by the services that they give and create a friendly environment to each member.