SCHOOL OF TECHNOLOGY
BACHELORS IN INFORMATION TECHNOLOGY
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A project proposal documentation submitted in partial fulfillment of the
requirements for the award of degree of Bachelor of Science in Information
Technology of KCA UNIVERSITY.
September, 2024
DECLARATION
I declare that this project documentation is my original work prepared with no other than the
indicated sources and support and has not been presented at this or any other University for any
award.
Signature…………… …………..Date…………………
ABSTRACT
This study focused at designing Web Based Loan Management System (LMS), which would assist the
microfinance institution to keep records of its clients which can be accessed wherever and whenever
needed. The LMS developed during the study, stores records in a web database and also allows online
update of the web application. An investigation was carried out to establish how the existing system
functions regarding the problems at hand in addition to the way forward. To help in investigation, the
interview and observation were used in fact finding.
Table of Contents
CHAPTER 1..................................................................................................................................................6
INTRODUCTION.....................................................................................................................................6
1.1 Background of study........................................................................................................................6
1.2 Statement of the problem.................................................................................................................7
1.3 Main aim of the project....................................................................................................................7
1.4 Scope of the study............................................................................................................................7
1.5 Limitation of the study.....................................................................................................................8
1.6 Purpose of the study.........................................................................................................................8
1.7 Justification of the project................................................................................................................8
CHAPTER 2..................................................................................................................................................9
LITERATURE REVIEW..........................................................................................................................9
2.1 INTRODUCTION...........................................................................................................................9
2.2 Analysis of the existing systems......................................................................................................9
2.4 How the proposed systems will address these challenges.............................................................11
METHODOLOGY..................................................................................................................................12
3.1 INTRODUCTION.........................................................................................................................12
3.2TARGET POPULATION...................................................................................................................12
3.3SOFTWARE DEVELOPMENT METHODOLOGY........................................................................12
3.4SYSTEM REQUIREMENTS.............................................................................................................13
3.4.2Hardware requirement.................................................................................................................13
References....................................................................................................................................................14
APPENDIX 1...............................................................................................................................................15
TIME SCHEDULE OF THE PROJECT.................................................................................................15
Ghant chart...........................................................................................................................................15
APPENDIX 2...............................................................................................................................................16
BUDGET OF THE STUDY....................................................................................................................16
CHAPTER 1
INTRODUCTION
Web- based loan management system refers to a computerized application that runs over a network
specifically the internet, where one can store, retrieve, delete, update and make other changes to that data
which is stored in the database. All this is done over the internet in any location where access is available.
Responsibilities under this web-based loan management system include creating a database that can be
accessed by the administrators online, adding and removing data, manipulation of data, update and
storage.
1.1 Background of study
The Web-based loan security management system as described above was once implemented in other big
financial institutions in Kenya. Smaller financial institutions have not yet found such an opportunity to
use this kind of a system. Given the numerous benefits that come with computer based systems, there is
need to design such a system for this small institution. This institutions uses paper based loan
management system, clients fill in forms by pen and the information is stored on paper and sometimes on
hard disks and other secondary storage devices. This data is also hard to access unless one is on the
premises of company and also keeping records is hard since it is only stored on hard disks, Compact
Disks and other secondary storage systems which get spoilt, crash and sometime stolen. Data is
therefore lost and cannot be retrieved. Hence the call for the design of a web-based loan management
system.
1.2 Problem Statement
The loan management system that is currently running is paper based. This inevitably is not only time
wasting but causes substantial poor records keeping. This is evidenced in loss of client information, data
redundancy, and long queues and as such this raises the need for a web-based loan management system
that can facilitate better record keeping and security.
1.3 Objectives of the Study
1.3.1 General Objective
The main objective of this project was;
To design a web-based loan management system that will ease the loan borrowing processes and
keep loan data safe and provide security to that data online.
13.2 Specific Objectives
The specific objectives of this project was:
To carry out an investigation on the Loan management system in Pride micro-finance
To analyze the problems heed by pride microfinance.
To establish the requirements for the proposed system.
To design a prototype for a web-based loan management system that will keep loan data safe and
provide security to that data.
1.4 Scope of the study
This system is designed to accommodate a wide range of different tasks and is user friendly for people.
The scope of the system includes the following aspects;
Compliance and Regulatory Reporting:
Automated reporting for regulatory compliance.
Financial statement generation.
Audit trails and compliance tracking.
Risk Management:
Risk assessment tools and reporting.
Tools for assessing creditworthiness of members.
Data Security and Privacy:
Data encryption and access controls.
User authentication and authorization.
Integration:
Integration with external systems, such as banks and payment gateways.
Member Management:
Member registration and profile management.
Membership status tracking.
Member communication and engagement tools.
Account Management:
Savings account management.
Loan account management.
Transaction recording and history.
Financial Transactions:
Deposits and withdrawals.
Loan disbursement and repayments.
Interest calculations and accruals.
This study allows financial managers to project how much money is required to maintain a positive cash
flow in the institution, allocate funds to grow or add services and meet costs i.e. salaries. It also allows for
assessing and providing compensating control for a variety of risk, set procedure regarding distribution
and processing of financial data.
