Government Polytechnic , Washim

A
PROJECT REPORT
ON
“Personal Loan Automation System”

OF

Subject: Capstone Project Planning (22058)

Submitted By

1 Abhishek Ananta Borkar 52 2000310202

2 Dhruv Vinod Dere 53 2000310206

3 Hritwik Uday Pande 60 2000310238

Project Guide H.O.D.

Mr. S. S. Gharde Mr. U. A. Bagade
Lecturer in IF Department Information Technology Department

Principal

Dr. B. G. Gawalwad

Government Polytechnic, Washim

DEPARTMENT OF INFORMATION TECHNOLOGY

Term I 2022-23
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 Government Polytechnic,Washim
CERTIFICATE

This is to certify that the group :

1 Abhishek Ananta Borkar 52 2000310202
2 Dhruv Viinod Dere 53 2000310206

3 Hritwik Uday Pande 60 2000310238

Third year Students of Information Technology has submitted a CAPSTONE PROJECT

report on

“Personal Loan Automation System”

During the academic session 2022-2023 in a satisfactory manner in the partial

fulfilment for the requirement of Subject: Capstone Project Planning (22058)

for the Diploma in “Information Technology ”

Awarded by
Maharashtra State Board of Technical Education, Mumbai.

Project Guide H.O.D.

Mr. S. S. Gharde Mr. U. A. Bagade
Lecturer in IF Department Information Technology Department

Principal

Dr. B. G. Gawalwad
Government Polytechnic, Washim

DEPARTMENT OF INFORMATION TECHNOLOGY

Term I 2022-23

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 Acknowledgement

It takes great pleasure to me to present project report on “Personal Loan Automation System”.
We would like to express our deepest thanks and gratitude to our Principal Dr. B. G. Gawalwad for
giving us opportunity to study in this environment. We would like to express thanks and gratitude to
our HOD Mr. U. A. Bagade For providing the resources of branch.With proper coordination and full
fledge cooperation among us and our guide Mr. S. S. Gharde we had able to complete this project
successfully. We would also like to express our gratitude and thanks to all the teaching staff of I.T
Department for their help and support in the project. Finally, we wish to express profound thanks to
all those who helped us in any way regarding the project.

Group members Sign

1. Abhishek Borkar
2. Dhruv Dere
3. Hritwik Pande

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 ABSTRACT:

Main objective is to provide good interaction & communication

facilities between customers & Administrator. Loan management system has been
designed to online the back office activities of bank and finance company which
offers any type of loan., Administrator manage customer information database more
efficiently, Loan details , maintain loan type and interest rate information. Admin
can use calculator to give exact payable loan amount for the customer & generate
all these work info as a report of each customers. Nowadays everything in loan
processing system is being done manually. Customer registration, issuing of loan
and keeping record of instalment payment every detail is maintained on papers.
First when customer comes to the company he has to be register in the manual
system. Then the biggest problem arises is to verify whether the same customer
already registered with any other loan or new customer. But with computerized
system this problem can be resolved in seconds. This application mainly deals with
the automation of loan approval activities. All the master information of customer is
entered to whom loan has to issue. Different types of loan are available with
different interest rates. Customer apply loan according to their need. After
registering customer loan is sanctioned based on eligibility and requirement. Details
of every loan approved is gathered such as loan account number, customer name,
address, contact number, type of loan, loan amount, period of repayment, date of
sanction and monthly instalment of repayment. When customer pay loan
instalments the details of loan are gathered and payment id, amount and date of
payment are stored. The operator has to simply select appropriate menu such as
customer registration, EMI calculator, loan master, instalment payment etc.

KEYWORDS:
Database, EMI, Payment, Maintained, Period of Payment

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 Index
Sr. No Title Page No
A. Certificate 2
B. Acknowledgement 3
C. Abstract 4
D. Introduction and Background 6
E. Literature Survey
2.1 Working of Existing System
7-9
2.2 Problem Definition
2.3 Requirement Gathering

F. Proposed Methodology
3.1 Feasibility Study

3.2 Project Schedule 10-18

3.3 Proposed System

G. References 19

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 Chapter – 1
Introduction and Background

1.1 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. PERSONAL LOAN
AUTOMATION 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.

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 Chapter-2
Literature Survey
Literature survey provides information about the literature of existing system. It also
Collects the information about the various formats used in the existing system. It also collects
The information about the various formats used in the existing system.

This chapter consists of following sections. Sections 2.1 explains the working of existing
System. Problem definition is discussed in section 2.2 Section 2.3 consists of requirement
Gathering.

2.1 Working of Existing 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.

2.2 Problem Definition:-

1. Interest rates and the loan details are also available at the click of a mouse.
2. Customer can apply for a loan and after approved it they can track their details
from online.
3. This system provides detail about the customers, their loan details, EMI details
and its rate details.
4. System provides download option to download different type of loan form in MS
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 word document.
5. Using with this system admin can find customer easily and it’s a paperless
system so workload is reduced.
6. The decision process becomes faster and more consistent
7. After registration and login customer can use the system easily and also customer
can view any query about loan details as well as EMI details in their profile. So
this system saves time.
8. Provides good communication for the customer
9. In this system there are used EMI (Equated Monthly Installment) calculators.
10. Provides a facility to generate the reports very easily.

Requirement Gathering

 Hardware Specification
• Core i5 or similar micro processor
• 8 GB RAM
• 1 TB HDD
• Other devices are casual is okay.
• CPU Speed 1.3 GHZ is good.

 Software requirement
 System Software
 Windows 11 or Later, Linux, UNIX.
 MySQL Server, Apache, PHP.

 HTML, CSS

Main objective is to provide good interaction & communication facilities between

customers & Administrator. Loan management system has been designed to online the back
office activities of bank and finance company which offers any type of loan., Administrator
manage customer information database more efficiently, Loan details , maintain loan type and
interest rate information. Admin can use calculator to give exact payable loan amount for the
customer & generate all these work info as a report of each customers.

 My SQL –
My SQL is an open-source relational database management system
(RDBMS). Its name is a combination of "My", the name of cofounder Michael Widenius's
daughter, and "SQL", the abbreviation for Structured Query Language.

A relational database organizes data into one or more data tables in which
data types may be related to each other; these relations help structure the data. SQL is a
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 language programmer use to create, modify and extract data from the relational database, as
well as control user access to the database.
 PHP Programming-

PHP (Hypertext Preprocessor) is a general-purpose programming language that is

particularly well-suited for web development. It can be embedded in HTML code, allowing
developers to create dynamic, interactive websites and web applications. PHP is a server-side
language, meaning that the code is executed on the server rather than in the user's web browser. This
makes it a good choice for tasks such as storing and manipulating data, generating dynamic content,
and handling HTTP requests and responses.

PHP is an open-source language, which means that it is freely available to use and modify. It is also
widely supported by web hosting companies and is used by many popular websites, including
Facebook and Wikipedia.

 HTML-
HTML (Hyper Text Markup Language) is the standard markup
language for creating web pages and web applications. It is used to structure and format
content on the web, and to create hyperlinks between web pages.

HTML consists of a series of elements, or tags, that are used to define

the structure and content of a webpage. These elements include headings, paragraphs,
lists, links, images, and other types of media. HTML tags are written using angle
brackets, and most tags come in pairs, with an opening tag and a closing tag.

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 Chapter-3
Proposed Detailed Methodology

This chapter consist of proposed system description. How the proposed system solves the problems
present in the existing system.

This chapter consists of Section 3.1 consists of Feasibility study. Schedule of the project in section
3.2 consists of system flowchart. Use the case.

3.1 Feasibility Study

i. Technical Feasibility:
In this project we used PHP, Chrome, MySQL application and all of this is free of
cost. To build this project we must know HTML, MySQL, PHP, and other basic
things. So, to implement this project we are learning Android. We have already
learnt MySQL in previous semester and we learnt Javascript & Android in
Industrial Training and we know it at intermediate level.

ii. Cost Feasibility:

This is very important aspect to be considered while developing a project. we
decided the technology based on minimum cost factor.
1. All the software we use are free source software
2. Overall, we have studied the benefits which will be gain to the organization
because of this project.
3. It has been prepared in minimum cost.

iii. Operational Feasibility:

No doubt the proposed system is very user friendly and all inputs to be taken
are all self - explanatory even to layman. Besides a proper training has been
conducted to let you know about the proposed system to the user so they feel
comfortable with new system.
The proposed “PERSONAL LOAN AUTOMATION SYSTEM” is
economically feasible because
i. The system requires very less time factors.
ii. The system will provide fast and efficient automated environment instead
of slow and error prone manual system, thus reducing both time and man
power spent in running the system.
iii. The system will have GUI interface and very less user-training is required to learn it.
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 iv. The system will provide service to view various information for proper
managerial decision making.
3.2 Project Schedule:-

3.2.1 Action Plan:

Week 1
Week 2
Week 3
Week 4

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 Fig. no. 3.1 Project schedule

3.3 Working Of Proposed 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, Verification 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.

 USER MANAGEMENT
Registration: Customer, User can registration with basic information like User
name, Mobile no, email id etc.
Login: Admin,Users can login with username and password.
Manage Profile: Admin,User can manage profile and update information

 LOAN APPLICATION
Admin manage loan application which is sent by customer using the system.

 DOWNLOAD LOAN APPLICATION

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 Once loan is approved customer can download loan form in MS word
document to sign of them and their guarantor.

 CUSTOMER INFORMATION MODULE

It shows all an information & details of the customer database which includes
all the details like customer name, address, contact no, bank account no, PAN
no, email id, etc. Only Admin can manage customer record.

 LOAN TRANSACTION MODULE

Loan transaction module includes Loan Type, Customer, Issuing Loan, EMI
Calculation, Receive payments. The System Administrator can able to add, modify
loan type like Home Loan, Gold Loan, Personal Loan of customer and can modify
the interest rate.
One customer can have more than one loan, System generate unique loan no. Admin
can add, modify loan details like loan type, loan amount, tenure, mortgage details,
guarantor details.
EMI Calculation - System have EMI calculator which can provides details of
particular loans, System take input from user like Loan Amount, Interest Rate,
Tenure, Issue Date and give details output like monthly EMI, total interest, total cost.
Receive payment – using with this System admin can enter payment information for
particular emi, in this system late fine charges can mention if receipt date is greater
than the emi date.
System user can find customer by their name to get customer ID

 QUERY MODULE
It shows EMI Payment details
A query module give information for particular customer, Customer user can search
information by entering customer ID.
It displays details like No of payment, EMI amount, EMI date, Receipt date ,Late fine
charge .

 ADMIN
o Admin can login the system with his user name and password.
o Admin can change password.
o He can manage loan type and interest rate in the system .
o Admin can manage loan application sent by customer using the system to decide to
give loan and for that customer will be contacted by company's agent to get document
of loan .
o He can maintain information & details to the customer such as customer name,
address, contact no, bank account no, pan no, email id, etc. Only Admin can manage
customer record.
o He can manage loan details such as Loan no, loan type, Loan Amount, loan tenure,
interest rate, Issue date etc. for the customer.
o He can calculate and manage EMI details .

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 SYSTEM FLOWCHART

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 ER DIAGRAM

USER CASE DIAGRAM

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1
 Chapter-4

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Mobile Heath management Software Base on the Android Platform", Fourth
International Symposium on Information Science and Engineering, 2014.
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"Development of Mobile Phone Medical Application Software for Clinical
Diagnosis", International Journal of Innovative Science and Modern Engineering
ISSN: 2319-6386, Volume-2 Issue-10, September 2014.
5]. Zaid A. Habash , Wan Hussain Wan Ishak, and Mohd. Hasbullah Omar,
Android-based application to assist doctor with Alzheimer patient ,International
Conference on Computing and Informatics, August 2013.
6]. Swabik Musa Abdulla Wani, Suresh Sankaranarayanan, Intelligent Mobile
Hospital Appointment Scheduling and Medicine Collection", International
Journal of Computer and Communication System Engineering, Vol. 1 No.02
August 2014.
7] S. Sundhar, Vasanth “Novel Framework for Smart Health Consulting Using
Android Device”, International Journal of Advance Engineering and Research
Development, Volume 4, Issue 2, February 2017.