BANK LOAN MANAGEMENT SYSTEM PROJECT

Abstract

This project mainly deals with automation activities performed while granting new loan.
It keeps record of various kind of loans, their customers and monthly installments. All the master
records of the loan automation system like loan type, loan percentage, city and state are
maintained by admin of the organisation. 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. Customer pays EMI to that loan id. This system has EMI calculator for easy calculation.

Objectives
The main objectives of loan management system project are as follows.

 Facility to store the information of new customer, different types of loans provided by the
banking 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 bank and there current status,also keep
record of loan repayment and late fine.
 Facility to generate different reports.Which are helpful

Introduction 
The main objective of developing this project is to handle the all details of Loans and
Investments in the bank. The project has been developed to smoothen the processing of Loans in
banks. Our proposed project automates the loan process from both, bankers as well as customer’s
side. Customer can apply for a loan and after approved it they can track their details from online.
LOAN MANAGEMENT SYSTEM is a very efficient process to handle all loan related
transaction in a very accurate and convenient way. Bank loan management system is an interface
which facilitates a customer to apply for a loan online and to track the status from time-to-time.
This system provides detail about the customers, their loan details,EMI details and its rate
details.Getting a loan is a very tiring and complicated process in India. It may take weeks even
months for loans to get approved and people have to visit the loan office again and again for
document and verification. Using with this system admin can find customer details easily and it’s
a paperless system so workload is reduced. It is very helpful for those banking staffs who are in
the charge of loan management, it provides a very reliable and convenient form for every loan
and emi related transaction and their related details. Interest rates and the loan details are also
available at the click of a mouse. Bank loan management system is unique in such a way, it not
only helps the customers but also the loan agency to check the pending, assign it to a
departments, complete the formalities and procedures between the departments and arrive at
decisions to very fact. System provides download option to download different type of loan form
in MS word document. It also generates a very customer friendly and understandable form for
their transaction information as the receive form after a transaction which contains all the
information related to next emi date, remaining amount etc. After registration customer can use
the system easily and also customer can view any query about loan details as well as EMI details
in their profile. Most of the bank out-sources pre-loan process to loan agencies to reduce the
burden and let the agencies pickup the information from customers and verify it before it is being
forwarded to the actual bank for approval of loan. this system provides good communication for
the customer and bank employee. This system provides a facility to generate the reports very
easily.

Proposed bank loan management system

The customer can directly apply for a loan by selecting a bank and loan type from the list
available. Here once the customer fills basic enquiry form, it reaches the bank server so he gets a
login id password. The application is received by loan agency who will have three departments-
PickUp, Verifiaction and Legal. The server administrator now can check it and select whether to
go forward or reject the candidate. This system can be controlled by the administrator. First he
will look at the application received and allot the application for a particular employee of pickup
department. If he needs to go forward the banker may select to send customer to next stage. Now
the customer gets stage 1 approval and needs to upload his scanned documents to the site through
his login. The employee will go and make a physical verification of the documents at the
customers and receives the documents necessary for the loan. Once the documents are submitted
they are cross verified at the server and reply is sent to server. The system server also gets the
person location and his image secretly by tracking the computer through which he submits
documents to the bank server needed for bank verification. Then he logs into this system and
forwards the application to the verification department which will verify the whereabouts of the
person, his organization, his salary particulars etc. The bank may now cross verify customer details and
also request extra documents by sending online alerts to the customer email. and then forwards the
application with a status verified. Then application reaches the legal department. The legal department
people will verify the builder details and when satisfied sends their report to the administrator.

The customer just needs to upload needed documents online and can also track loan status. The
administrator or final approving authority views both types of reports, Viz, the reports from verification
department and the report legal department. This will help him to take a decision regarding whether to
forward it to the bank or not. The same is communicated to the customer.

He gets a Message verification as once his loan has been approved from confirming the process. The
customer can at any time view the status of his application and can send any messages to the
administrator and can get clarifications from him. Thus the bank loan management system s/w helps to
simplify the loan system along with making the work easy.

Existing bank loan management system

At present the finance division does not have any automated system to manage the data of Loans, Grants
and Investments. They have to rely on manual system which is time consuming. Existing system doesn't
maintain details with proper security and can’t track details easily. It doesn’t allow the customer to check
their profile in proper way which leads customer dissatisfaction. and any addition, deletion or
modification to any data or retrieval of data requires lot of time and effort.

It does not provide option to download loan form. Existing system doesn’t contains functionalities of fast
retrieval information such as customer details and maintenance of all the loan details so it involves lots of
paperwork. Apart from administrative task being cumbersome, manual system of registration is also long
and error-prone. it Doesn’t user-friendly interface.

Lots of time is required to manage customer info & details so it feels that existing system not accurate and
therefore maintenance becomes very complicate. In the manual handling of data filled by dealing hand
users, administration has to keep the forms in order and check manually all the fields filled by the users to
ensure that each field is correctly entered. It used to take more time to find customers because there are
required extra manual effort such as to hire candidate. It is tedious process as one has to inform the users
to fill the correct information. There is no provision to prevent incorrect data entry in form and the data
masters. It is very difficult to generate different reports as per the business requirement.

SOFTWARE AND HARDWARE SPECIFICATION

 HARDWARE REQUIREMENTS:
 
 Processor : Pentium IV 2.4 GHz.
 Hard Disk : 250 GB.
 Monitor : 15 VGA Color.
 RAM : 1 GB
 Mouse :Optical
 Keyboard : Multimedia
( These are Minimum Configuration)

SOFTWARE REQUIREMENTS:
  Operating system : Windows XP Professional / Windows7 or More
 Coding Language : Python
 IDE : pycharm, flask

Conclusion

Financing short-term needs is essentially a financing of current assets using short-term

financial resources. Current assets, however, are usually funded in part through long-term
financial resources that can fund a permanent as well as transitional part of current assets.
Different sources are used to finance current assets. It is mainly the trade credit, which is
a natural source of financing of the customer by the supplier. It represents the customer's
liabilities arising from the delay payments to suppliers for the receipt of the goods. Short-term
bank loans are loans whose lenders are banks. Loans are provided in various forms.
Knowledge of forms and parameters of short-term bank loans is a prerequisite for the effective
management and the use of bank loans to the fulfilment of the objectives of the company.   Part
of the short-term financial resources are a variety of obligations, which form a source from
their creation to the time of their payment. Optimal composition of short-term financial
resources contributes to ensure the ability to pay as one of the fundamental objectives of the
company in its financial management.

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