LOAN MANAGEMENT SYSTEM (My Project Idea)

There are many companies that specializes on giving loan to people; they make their profits by collecting interest on any money they lend out, and before a loan can be given to any customer, the customer must provide a collateral and some details such as:  contact details and a reference/guarantor.

When the loan is finally given to the customer, they charge interest based on the the amount given to the customer for a given period of time which could be daily, weekly, monthly or yearly. 

For example, a company could be collecting interest based on a particular amount for a given period of time like: $200,000 loan would have an interest tag of $2,000  per month until the money is returned, and $100,000 would have an interest of $1,000 per month until the money is returned. 

In  addition, the customers need to know when the time for them to pay their interest comes e.g.  at the end of the month or the timing model with which the calculation is being made. Usually, these companies sends out mails, text messages and even calls to notify their customers that it's time for them to pay their interests.

Now, imagine that these companies are using pen and paper management method to manage all these tasks, someone would be hired to do the recording and monitoring of who has paid his/her interest and who hasn't, another person would be hired to take the list of people who are due to pay and then send them mails, SMS and also call them, another staff might be hired to keep track of people who has paid their main money i.e. the main loan, so that the interest would stop counting as soon as the main money is paid. 

Apart from the loan method above, these companies still have other methods one of which allow their customers to pay a particular amount of the money from the money they have borrowed at a given interval like every month, every week or even every day for a given period of time like 6 months  or 1 year when the money alongside its interest is estimated to be completed. 

For example: Mr. Yusuf took a loan of $100,000 with an interest tag of $20,000 from KINSWARE LOAN GIVING COMPANY NIG.LTD  and he is to be paying $10,000 every month for a period of 6 Months when the payment is expected to be completed 

($20,000(Amount to be paid monthly) x 6(Total Months)  = $120,000(Total) 

which corresponds to 

$100,000(Borrowed amount) + 20,000(Interest) =$120,000(Total)) 

The table below illustrates this:

  

Customer'sName	AmountBorrowed	Interest	AmountPaidAtInterval	Interval	Status
Mr.Yusuf	$100,000	$20,000	$10,000	Monthly	Active

 

 This whole process would be done by people, the task would become very tedious especially where there are more customers, meaning that more employees would be needed, that's more money for the organization to throw around. If we can develop a software that solves these problems, we would be achieving a lot (Of course it has been built already, that shouldn't stop you from building your own version).

 The Project 

TITLE: Loan Management System

PLATFORM: Windows

OPERATING SYSTEM: Windows 7

PROGRAMMING LANGUAGE: C#.Net 

USER INTERFACE: WinForm or WPF

BACK END: SQL Server Database.

NET FRAMEWORK VERSION: 4.5.

IDE: Visual Studio or any other IDE you are comfortable with. 

NOTE: This program should be developed on demand or built in such a way that it would be extendible. Try to study your client's environment before developing, you might discover features that are not listed in this article that needs to be implemented. The solution to the above problem is to build a system that solves the problem. The  system is a client and server system. In the client (usually the User Interface), there should a form that has the capability of taking customers information such as: Customer's Full Name, Date Of Birth, Home Address, Office Address, Phone Number/Mobile Number, Scanned Passport Photograph, Email Address, Name Of Guarantors/References (Contact details of the guarantor such as: Phone number, email address, scanned Passport Photograph and Home  address.), Collateral details, Amount to borrow, Interest (though, this should be computed automatically based on the amount borrowed which should have been specified in the settings window), Amount Paid At a given interval (This should also be computed using the value specified in the settings window), Interval (This should be the interval at which the amount to be paid at interval is paid e.g. Monthly, Yearly, etc. This should also be made possible to be entered in the Settings Screen).After all the details is entered into the database, there should be a print out agreement containing the relevant details the customer needs to know about. A summary or the the full terms and conditions should also be in this print out and a space where the the customer need to sign that he/she agrees with the terms and conditions.

Still in the client, there should be a screen that shows the customers and the loan they took in a tabular form like this: 

Name	Borrowed Amount	Interest	Amount Paid At Interval	Interval	Date	Amount Paid	Outstanding Balance	Status

          There should be another screen where clients are being marked for meeting up with their interest. This should be done when the client pays and there should be a print out receipt (Preferably, on a POS/Roll Paper) indicating that the customer has paid for that particular month. These details should reflect in the receipt.

Finally, there should be a settings screen where settings like changing the interest rate for a particular amount, changing the timing model e.g. from weekly to monthly, etc.

This system should be able to send emails or text message reminders to the customers (This can also be used to send marketing messages to customers). This feature should be implemented in such a way that when scheduled and there is an active internet connection, the messages will be sent even if the whole software is not running. This means running the code that does the sending of the messages as a background service.

Though, I may not have captured the whole details about this project but this idea should go a long way in helping you get the core features running. It is a very complex system, so feel free to suggest a core feature the system should have which I didn't specify here in the comment section. If you are a businessman or woman who is into the business of giving out loan and you want me to build this system for you, my contact information can be found here. Thanks for checking it out.