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. Page | 2 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 be able to calculate the interest of the ew amount and the whole total amount payable.
1. 2. 2 Overview The intent of this project is to develop a system that will assist Chidzabana Cash Loans in arranging, making calculations and storing its documents accordingly. The business uses a manual system, by which a customer fills in an application form in order to get a loan amount he/she wants. The system will address the problems faced by the business currently. Customer records, loan application forms will be computerized, kept in the system database in order to keep track with customers.
Interest calculations will be computed for each and every customer, also with their total payment. The system will be able to produce a list of all customers who failed to pay back their loans for a particular month, and then calculate interest based on the new amount. 1. 2 Problem Statement · Misplacement of files/customer records in file cabinets, service delivery becomes slow when it comes to finding the records of a customer in files, time employees would spend going back and forth to file cabinets looking up each client’s information.
Calculations are done manually through the use of calculators and it leads wrong calculations sometimes. · Too much paper work involved, sometimes it goes to an extent of having a shortage of application forms and this result to loss of customers as they will have to wait for some hours or days for new print outs. · Shortage of hardware, these includes computers and printers to print application forms, so Page | 3 the business have to out source. Customers tend to relocated to better services at Chidzabana Cash Loans competitors who provide quick service and always reliable hence profit reduction to Chidzabana Cash Loans.
This is a challenging process, as it is time consuming and cumbersome. 1. 3 Problem Solving Chidzabana Cash Loans is a developing new cash loans business, and requires more sophisticated system of tracking customers and their preferences, as well as all the details about each customer and the employees themselves. Chidzabana Cash Loans has decided to implement computerized system for record-keeping. The system will also be making all necessary calculations for the business. The main idea to address all burning issues the business is facing.
By so doing the business will be able to assist their customers in no time, and satisfactory, hence more customer turn-over and business increase. 1. 4 Project Objectives To monitor customer loans, records and their payment dates To improve the performance of the manual (file) system by correcting inappropriate records, redundancy and establishing continuous update of customer data. Reduce employees work load Automation of calculations (interests and customer balances). 1. 4. 1 Project Scope The study was carried out at Chidzabana Cash Loans, Fast Cash Loans and Easy Quick Cash Loans.
This was mainly because of the financial constraints and time that could not permit wide coverage of all cash loan businesses and their branches. The reason for choosing Chidzabana Cash Loans was due to the fact that it faces many challenges on its daily business measures. The study focused on analyzing a cash loan business system as an enabling tool in the decision making process by studying the cash loan business’s existing system and coming up with a design of a more efficient and reliable system. Page | 4
The Cash Loans Management System should be able to; · calculate the interest of each and every customer and add to the loan amount · list all those their payment is due · Manage customer records. 1. 5 Project Feasibility 1. 5. 1 Economic Feasibility The economic analysis of the system will be of benefit since one programming which is linked to different computers and offices will be used in all areas and that will save costs. The benefits and savings from the system will be greater than costs. 1. 5. 2 Schedule Feasibility
This project is going to take a short time to be completed because of enough time that is being allocated and therefore there are no danger of it failing before it is useful. 1. 5. 3 Technological Feasibility The University has software, and hardware to handle the completion of the project, so the new system will perform adequately. 1. 5. 4 Operational Feasibility The system will be able to solve problems of the current system perfectly. Page |
5 1. 6 Resources 1. 6. 1 Software a) Windows XP operating system to provide services like: Graphical user interface File management Memory management Control access to system resources b) Microsoft Office Suite 2007 (typing and opening word documents, Microsoft excel for calculations). c) Avast antivirus to protect computers from viruses, worms and unwanted programs. d) Adobe Reader 9. 0 (will be used for opening pdf files/documents). e) JGrasp (For Java programming) f) Xampp server (for database) 1. 6. 2 Hardware a) Computer system: · LCD Monitors (for perfect display) · Processing unit (CPU) · Keyboard and Mouse b) Printers for photocopying, scanning and printing documents with: · Accurate color · Consistent output
Cite this Cash Loan Management System Proposal
Cash Loan Management System Proposal. (2016, Oct 02). Retrieved from https://graduateway.com/cash-loan-management-system-proposal/