Lending System Essay

Published: 2020-02-03 15:41:07
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As the world moves a global electronic place, lots of establishments are not upgrading their computers to the latest features just assures that their clients will be satisfied by the services that they give and create a friendly environment to each member.

The existing loan transaction processing system used by the RGT Lending Investor Incorporated is manually operated. The loan takes two (2) days to be processed. This can be obsolete because of the presence of the computers, which could facilitate any transaction at faster rate. They use computer merely for their documentations and not for their system. In fact, they only use word and excel which are the generally used Microsoft office works and not a specific task. Thats why; their use of computer does not help to make their process faster and accurate. Since loaning is primary service offered by the RGTLI , we should create a better way to facilitate processing of every members transaction and queries. Thus, the system will automatically check the status of each member/staff once they login making it not time consuming for both of them.

In that case of Computerized Lending System that will provide easier and faster of loan transaction processes for RGT Lending Investor Inc is proposed.

If this system will be successful, members and staff will reduce their works if we can do it, this can aid the problem of technicalities and can be more efficient and user friendly to them.

Background of the Study

We find that the existing loan transaction of RGT Lending Investor Inc . is manually use or operated and the process is taking too long to be processed. Its manually being processed by the staffs of RGTLI and decreasing their performance by taking too much time in one tasks. Our advance technology now can be used to make a more advance and efficient ways to improve the transaction with more efficiency by introducing the use of Computers and developing the Computerized Lending System to help them create a better way to facilitate processing of every members transaction and queries , reduce the amount of time consuming in processing the loan and also to reduce the technicalities problems resulting of another work to the staff. Theyre process have to used computer but most of the time just using Microsoft Word and Microsoft Excel.

The introduction of computers enhances the speed and efficiency of Lending Process. Better results could be attained by using a automatic system and also reducing the time to a mere fraction compared to the time it takes if the process is done manually. The manual lending process system of RGT Lending Investor Inc lacks the advantages of the modern technology that we have this day.

We created this type of system to enhance the process of lending and the transaction with the customers. To reduce the amount of time being consumed on manual processing of the transaction. To make the member and staff have a better transaction with the investors and loaners. To facilitate better on processing of every members transaction and queries

Statement of the Problem
This project is been developed to design a Computerized Lending System in order to maximize the potential of advance technology in Lending industry.

Conceptual Framework

The conceptual model of the study consisted of two major components, the entity and the process. The entity is the people that involve on the system and the process is the actions of the entity.

Purpose of the Project
The purpose of this project is to develop a software that will improve the transaction process ,of RGT Lending Investor Inc. and to achieve the following objective : To record the important information of investor and loaners

To improve the transaction rate of staff and customers
To enhance the quality of service given to investor and loaners Significance of the Study

This study shall be useful to the following person :


The Staff will have a better performance and because the amount of work will be decrease.


The clients will be given a fast and better transaction with this new processing system.


The company will have a faster and better process than the others, so the transaction with the clients will become efficient for the company and staff.

To the management

This will make the Loan information system easier.

Scope and Delimitations of the Study
The study is about the Lending System of RGT Lending Investor Inc. The respondent are the staffs and clients and all the clients information after the customers inquire .

Definition of Terms

System a set of principles or procedures according to which something is done Information a collection of data
Microsoft Visual Basic 6.0 a high level language that converts a message in the form of text and transforms it into code. Graphical User Interface (GUI) the interaction between the user and the computer program that relies on icons, menus and a mouse typing in Entity the user

Data facts and statistics collected together for reference or analysis Process a series of actions or steps taken in order to achieve a particular end

Chapter II
Review of Related Literature

Review of Related Literature and Studies
The Researchers gathered different related literature and studies, Both locally and from foreign sources, in order to understand more about their study. In this chapter, the review of related studies and literature are presented here It Intends To provide an overview of the functions of the proposed project and relation to the Existing system. It includes the description of related research for studies and literatures that would guide to the development of the System. To enrich and improve the content of this study, and to build foundation of ideas and concepts to the problem, the researcher reviewed some relevant literatures and studies.

Related Literature
Lending System offered by FAS is by far one of the most extensive packages on the market today. This application, designed around a system manager, runs on almost all types of operating systems, will effectively and efficiently handle up to 16 million loans, and incorporates from one to an unlimited number of users. The base system is designed to handle standard financing; however, multiple custom options allow the package to be tailored to accommodate needs ranging from financing, construction loans, mortgages, agricultural, commercial, installment, student, and lease/loans. Many of these features cannot be found on software packages costing a quarter of a million dollars. The Lending Service System is by far our largest package. The ability to effectively handle all loan transactions are inclusive in the base system with 12 different transaction types, and over 100 reports available. One-time entry of customer information is permitted, and can then be tied to multiple loans. Class and type may sort customers.

Class, type, and loan officer may sort loan information, with the class being tied to general ledger accounts for interfaced postings. Partial payments are handled with ease with the ability to define what will be satisfied first (i.e. Interest, late charges, principal, escrow). Any item not satisfied will be carried over and will reflect in reporting. Past due notices may be generated at any time, with global late charges or individual rates for each loan class. Past due reports can be produced using any date window. According to the MIMICS Loan Cashier System assists the cashier in receiving payments, printing receipts for payment, looking up account and loan status, and balancing at the end of the day. Payments due can be looked up by account, loan number, or by scanning the outstanding loans.

Check, cash, or DDA debit can make payments. Change to be given to the customer is calculated for overpayments. Overpayments and underpayments can be distributed according to your specifications. Look up the status of the loan, amortization schedule, and payment history. Look up payment history by receipt, check number, account number, or loan number. Print amortization schedules, daily transactions, receipts, and history. Upon request by customer, calculate payoffs immediately. Balance your cash drawer with an easy screen that points out discrepancies between amounts on checks and the amounts entered for the checks. Supervisor features for correcting and deleting payment transactions.

Loan, in business, sum of money borrowed at a particular interest rate. More generally, it refers to anything given on condition of its return or repayment of its equivalent. A bond, a promissory note, or a mere oral promise to repay may acknowledge a loan. Because of biblical injunctions against usury, the early Christian church forbade the taking of interest. In feudal European society, loans were little needed by the great mass of relatively self-sufficient and noncommercial peasants and serfs, priars, nobles, and ecclesiastics were heavy borrowers for personal expenditures. Merchants and other townsmen, were the moneylenders, and various devices were found for circumventing the prohibition of usury. With the rise of a commercial society, restrictions on the taking of interest were gradually relaxed. Today, banks and finance companies make most loans, usually on collateral, such as stocks, personal effects, and mortgages on land and other property, or on assignments of wages. The savings and loan institution went through many changes in recent years, primarily due to deregulatory measures instituted in the 1980s by the government, allowing them to offer a much wider range of services than ever before. The deregulatory measures allowed savings and loan associations to enter the business of commercial lending, trust services, and nonmortgage consumer lending.

Related Studies
The Lending Service System is by far our largest package. The ability to effectively handle all loan transactions are inclusive in the base system with 12 different transaction types, and over 100 reports available. One-time entry of customer information is permitted, and can then be tied to multiple loans. Customers may be sorted by class and type. Loan information may be sorted by class, type, and loan officer, with the class being tied to general ledger accounts for interfaced postings. Partial payments are handled with ease with the ability to define what will be satisfied first (i.e. Interest, late charges, principal, escrow). Any item not satisfied will be carried over and will reflect in reporting. Past due notices may be generated at any time, with global late charges or individual rates for each loan class. Past due reports can be produced using any date window. An all-inclusive loan tracking system, the Loan Service System now includes 13 different transaction types, as well as more than 100 reports. Customers are only entered once, may be tied to several loans and may be sorted by class, type and loan officer.

Past due notices may be generated at any time, with global late charges or individual charges, and past due reports can be pulled using any date window. Partial payments are handled with ease and the user determines what items are to be satisfied first (interest, late charges, principal or escrow). According to Kelly on his book of Built around the Loan Service Plus system concept, Loan Portfolio is designed with the small, growing user in mind. Encompassing all of the transaction abilities of its big brother, the Loan Portfolio product will not distinguish or sort by class and type for either loans or customers. All thirteen transaction types are provided: new (opening), regular payment, odd payment (partial payments), disbursements, principal added, interest added, deferral, extra principal only payment, variable rate (interest) adjustment, mark-down (discount or partial charge-off), write-off (charge-off), closing, and automatic reversals. Local

According to the book of The Importance of Training for Supervisors In Local Government The importance of training is discussed with further consideration given to orientation, implementation evaluation and reinforcement of training programmers. This study related to our proposed system that training is important to the member of the cooperative in order to know what was the system flow. And especially to the management of the cooperative that they have a big part on operating the system. This study is also related tom our proposed system that in every loan of the member there is an approval came from the management if the can loan, but it is bases on the records of the member that have if the member have an amount to pay she/he could not loan unless she/he pay first his/ her payment. This is all about for the protection of the cooperative not back down the cooperative but to expand the cooperative. Another local study that A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower. The borrower initially receives an amount of money from the lender, which they pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as interest on the debt.

Chapter III
Research Methods and Procedures

This chapter tackles the methods and procedures used in gathering data. It includes the Research Design, Data Instrument used and Data gathering Procedure.

Research Design

The researchers used the descriptive survey method. This includes a face-to-face interview, direct observation and distribution of questionnaire to the respondents.

Sources of Data

The researchers did a face to face interview with the staff and manager of RGT Lending Investor Inc. to determine what needs to be done and changed and constructed a questionnaire for the clients as a gathering data instrument for the proposed system.

Respondent of the Study
To produce an accurate source of information, selected samples of respondents involved in this study that includes both that employees and members of the company.

Chapter IV
Presentation, Analysis and Interpretation of Data

This well present all the data gathered by the researches through surveys and questionnaires to determine the problems uncounted by the respondents on the present system. Presentation of Data

The existing Lending System of RGT Lending Investor Inc comes from what the respondents describe about the previous system. 4.1 Existing Lending System

The existing Lending Process of RGT Lending Investor Corp is manual and had a use of computer but only for Microsoft Word and Excel only. The company service for processing the required information of the loaner/investor is slow and not good enough. The members of the staff must ensure the quality of service that they are giving for their loaner/investors. This is how the company system works, the staff will give a form, the loaner/investor must fill out the required information then the staff member will submit the form to the Manager for request of approval. They going to have a small conversation about how the company do their work. After the Manager will now hand over the information to the Admin and now record it in their database and the approval sheet will be given to the loaner/investor. Thats how the company system works .Its lack of use of modern technology and makes its a disadvantage for their business.

4.2 Proposed Lending System

The Lending Process that we proposed for RGT Lending Investor Inc. will be more advance and efficient to use than the existing system of the company by using the programming language Visual Basic 6.0. This system will improve their performance and tasks also will reduce the time being consumed on recording the information. This is how the proposed system works , First of all The staff must be log in to the databases for monitoring purposes to record their daily time , Then the staff will hand out the form to the loaner/investor to fill in the required information. After that , the staff will now hand over the filled information to the Admin and will input the record of customer in the databases. Then the manager will requested for his/her approval and will give the loaner/investor what he needs. This is how our proposed system , the computerized lending system works.

Summary, Conclusion, Recommendation

It is so obvious that computerization as the aspect of an organization has brought a very remarkable and outstanding effects towards globalization. That through computerization indeed, different sectors are up to its great height it is so evident.

This study aims to organize the different transactions in operation involving this loan information system and to generate reports that would allow the RGTLIC a hardly access on the different records every time they need it. The study try to determine the present status of RGTLIC, Computerized Lending system on how they operate on code with the common problems they face during the operation to give their customers a quality on better service.


RGT Lending Investment Inc has been suffering from the abhorring results of a manually Lending System. Such effects made the organization become more aware of some proven solutions that they therefore made with the coming up with the study. It would be very advantages to automate the different transaction that the organization takes responsible of Automation means fast accurate, efficient and effective.


The researcher recommends the implementation of a Proposed Computerized Lending system to replace the current Lending system so as to resolve the problems posed by the latter system. As indicated in the summary and conclusion the manual a traditional loan Information system is more complicated and there are in-accuracies and delays in lending money. Therefore a new Lending system is recommended. The Visual Basic is the best compeller program that the researchers recommend to the company.

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