Cash Loan Management System Proposal

Topics: Loan, Debt, Predatory lending Pages: 4 (1159 words) Published: March 11, 2013
1.1 Background of the study
The growth of various banking and micro finance institutions has largely contributed to an increase in lending to borrowers. It is vital to note that, today’s economic growth poses a big challenge to lenders to predict borrowers’ performance in recessionary conditions. Loan assessment techniques such as credit scoring which is used to evaluate whether customers should or should not be granted credit, loan screening aids such as advances in data technology, changes in regulatory environment, the firm’s future profitability, the amount of the owners equity in the business to mention but a few have often not been fully revealing and are imperfectly correlated across banks and cash loan businesses.

Banks and micro finance institutions often rely on information to screen loan applicants and for monitoring borrowers through repeated interaction with their customers. This normally applies to the subsequent borrowers than the new entrants since it requires ample time to determine the true credit worthiness of individual borrowers.

It is significant to note that a loan is depositor’s money or a type of financial aid, which must be repaid with interest. It also refers to an amount of money borrowed by a person to start or run a business. Many of these micro financial institutions deal with manual system for their day-to-day business, which make business to run heavily. In view of the above remarks and fact findings, it is significant to appreciate the complexity of the problem and hence a need to design a suitable system to address the related problems.

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1.2.1 Project Definition
Cash loans management system is a computerized system capturing customer’s details (keeping track of the records), and calculating interests of their loans that they applied for. The system will be capable of producing/listing all customers whose payment is due. If a customer fails to pay for that particular month the system should...
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