Online Loan Application & Its Verification System

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Project Online loan Application & Verification

System

Member,s Included

Soban Ahmad (036)

Hamza Nazeer (065) Aqeel Hussain (007)

Mehzad Asghar (087) Waqar-ul Malik (050)

BS-SE Section A

Date 27th Jan 2016

Online Loan Application Software Engineering & Verification System

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Table of Contents Introduction .................................................................................................................................................. 4

Current working of System .......................................................................................................................... 4

Proposed Working of System....................................................................................................................... 4

Automation............................................................................................................................................... 4

End-to-end loan cycle management ........................................................................................................ 4

Robust Analytics ....................................................................................................................................... 4

Sub-ledger Transactions ........................................................................................................................... 4

Mobile Ready ............................................................................................................................................ 5

Single System of Record ........................................................................................................................... 5

Perfect for Emergencies ........................................................................................................................... 5

Convenience ............................................................................................................................................. 5

Easier Access ............................................................................................................................................. 5

Lower Rates .............................................................................................................................................. 5

Numerous Options ................................................................................................................................... 6

Round-the-Clock Service .......................................................................................................................... 6

Saves Time ................................................................................................................................................ 6

High fees and interest rates ..................................................................................................................... 6

Short repayment course........................................................................................................................... 6

Vague terms and condition ...................................................................................................................... 6

Our solution benefits to the current system ............................................................................................... 7

Functionality of the system ......................................................................................................................... 8

Description ................................................................................................................................................... 8

User current situation .................................................................................................................................. 8

Input .......................................................................................................................................................... 8

Output ....................................................................................................................................................... 8

Pre-condition ............................................................................................................................................ 8

Post-condition ........................................................................................................................................... 8

CNIC............................................................................................................................................................... 8

Input .......................................................................................................................................................... 8

Output ....................................................................................................................................................... 8

Pre-condition ............................................................................................................................................ 8


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Post-condition ........................................................................................................................................... 9

Bank Account ................................................................................................................................................ 9

Input .......................................................................................................................................................... 9

Output ....................................................................................................................................................... 9

Pre-conditions ........................................................................................................................................... 9

Post-Conditions ......................................................................................................................................... 9

Government Job Holders ............................................................................................................................. 9

input .......................................................................................................................................................... 9

Output ....................................................................................................................................................... 9

Pre-conditions ........................................................................................................................................... 9

Post conditions .......................................................................................................................................... 9

Personal Property ....................................................................................................................................... 10

Input ........................................................................................................................................................ 10

Output ..................................................................................................................................................... 10

Pre-conditions ......................................................................................................................................... 10

Post conditions ........................................................................................................................................ 10

Interest ....................................................................................................................................................... 10

Input ........................................................................................................................................................ 10

Output ..................................................................................................................................................... 10

Pre-conditions ......................................................................................................................................... 10

Post-conditions ....................................................................................................................................... 10

Functionality of the system ....................................................................................................................... 10

Requirements ............................................................................................................................................. 10

Input ............................................................................................................................................................ 11

Output ......................................................................................................................................................... 11

Pre-conditions ............................................................................................................................................ 11

Post condition ............................................................................................................................................. 11

Conclusion .................................................................................................................................................. 12

Context Diagram ......................................................................................................................................... 12

Interaction Models ...................................................................................................................................... 13

Use case Diagram ................................................................................................................................... 13

Use Case table for online management system .................................................................................... 13

Sequence diagram .................................................................................................................................. 14


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Class Diagram ............................................................................................................................................. 14

Activity Diagram ......................................................................................................................................... 15

State Diagram ............................................................................................................................................. 16

States Online Loan System ..................................................................................................................... 16

Stimulus .................................................................................................................................................. 16

Description ............................................................................................................................................. 16


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Online Loan Application & Verification System

Introduction Getting a loan is a very tiring and complicated process in Pakistan. 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. Here our proposed project automates the loan process from both,

bankers as well as customer’s side. Here customers may see various loans provided along with

rate of interest and required documents.

Current working of System Here once the customer fills basic enquiry form, it reaches the bank server so he gets a login id

password. The server administrator now can check it and select whether to go forward or reject

the candidate. 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. 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. The bank may now cross verify customer details and also request extra documents

by sending online alerts to the customer email. The customer just needs to upload needed

documents online and can also track loan status. He gets a Message verification as once his loan

has been approved from confirming the process.

Proposed Working of System Following are some specification we think to be proposed in our current system.

Automation It has to sets automatic payment alerts and notifications.

End-to-end loan cycle management It must be turnaround time across all customer interaction channels with a 360 degree view of

customer across organization.

Robust Analytics Real-time analytics, customized reports and dashboards based on user preference.

Sub-ledger Transactions Real time online updates of transactions that can be integrated with region- specific external

accounting system based on local regulations.


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Mobile Ready Integrates loan servicing and repayment with mobile platforms and mobile payment gateway

integration (mPesa).

Single System of Record Provides a single source of truth for any loan, anytime and anywhere.

Advantages of online loan

Perfect for Emergencies Most people try to plan their expenses but there are things it’s impossible to foresee. Sometimes

consumers need to borrow money really quickly and they can’t wait until one of traditional loan

lenders approves their loan application. Online loans perfectly suit for financial emergencies

because getting them may take less than an hour. Another important point is that you don’t have

to explain why you need the money so you can just use it the way you want.

Convenience One of the greatest factors for selecting an online personal loan over a traditional loan is

convenience. The process is as simple as applying for a personal loan from the comfort of your

home by filling out an online form and being quickly approved. All dealings with the lender occur

online so you do not need to make multiple trips to the bank to discuss the loan with an

employee.

Easier Access With the global economic downtown, banks have become considerably picky with regards to

lending. Online loan services are not as picky thus allowing you to get approved for a loan easier,

given the right credit score. You can get a loan even if you have low credit score or have no credit

history at all. That’s the reason why online lending is so much in demand.

Lower Rates In most states payday lenders can charge only certain interest rates. This industry is strictly

regulated and sometimes an amount of loan applications is limited. Such things intended to

protect consumers from misusing personal loans. Reputable lenders provide all the important

information concerning a loan you’re going to take out so you know exactly the cost of the loan

and the interest charged. Additionally, the majority of personal loans are unsecured so no

collateral is required to be approved for the loan. Depending on the situation, this can mean

higher interest rates due to higher risk by the lender.


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Numerous Options There are many websites offering unsecured personal loans so consumers have an impressive

choice. Before making a decision to apply to one or another loan provider you can shop around

and compare interest rates charged by different lenders but don’t forget that it’s worth dealing

only with trustworthy ones.

Round-the-Clock Service Sometimes a money need comes at non-convenient time, for example, late at night when

traditional financial institutions are closed. You don’t have to wait until its open because you can

get an online loan any time you need it. And there is no need to go somewhere because a laptop

and the Internet access is all you need to fill a loan application.

Saves Time Getting approved online is quick and easy. This saves a significant amount of time and effort. Pre-

approval typically takes a few minutes based on Internet speeds. On the other hand, getting a

traditional pre-approval could take an entire day of driving between lenders and personally

talking to each one which takes more time.Online personal loans provided by

PersonalMoneyService deliver no headaches, allow for many different options for the borrower,

save time and money and are much more pleasant experience overall. When searching for a

personal loan, it is always beneficial to consider all options to ensure you get the best rate that

fits your budget.

Disadvantages of online loan:

High fees and interest rates Professionals would advise you not to get this loan, unless the need is urgent. Online loans have

higher interest rates and fees, compared to normal loans. Aside from the high interest rates and

fees that you have to pay as you apply for the online. You will also have to pay a fee if you are

late in your payment. Most late repayment fees that are charged by online lenders are quite great

that they can reach up to double or triple the amount that you have borrowed.

Short repayment course –

Normal loans from banks and other institutions can give you a repayment plan that divides your

debt payment in a long span of time. Repayment can be done within the span of a year or two

when getting a normal loan. An online loan however, requires you to settle your debt within a

shorter span of time. it can be within two weeks or a couple of months.

Vague terms and condition statement - In some loan services, there may be certain terms and conditions that place you in a

high risk situation. This is often intentionally hidden or made unclear, since they don't want you


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to know about it.Although useful, there are things that you need to take into consideration

before getting an online loan application. You should always weigh the pros and cons before

deciding on anything. & many other.

Our solution benefits to the current system Historically, if you needed a car loan, home improvement loan or a way to consolidate credit

cards, you put on your nicest suit and headed down to the local bank to request money then you

have to wait in queues for withdrawal. Luckily, the Internet has made this process much easier.

Online personal loans are readily available to eliminate the hassle of applying for a loan and you

can apply comfortable you as. Also, there are many sites that offer personal loans that have

further changed the lending and borrowing system. The popularity of online loans is rapidly

increasing with online loan services granting billions of dollars. PersonalMoneyService offers

online loans to satisfy our consumers’ needs and demands. Learn more about benefits of online

personal loans and the way these credit products can help to improve your finances.


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Online Loan System

Functionality of the system Check requirements of the users & provide online loan.

Description Our program wants the users current situation that why he needs money for further process.

Furthermore, this program stores CNIC & Bank account no of the user for securing the

transaction. Our user has to provide some guarantee (govt Job holder of some person’s property)

on behave of which we can pay loan to them. As per policy of our system or program attach 7%

of interest on whatever the credit wants.

User current situation Input For what purpose he needs loan & how much loan he needs, is he able to return the loan back

within time according to loan policies.

Output Verify the user’s information according to our loan policies if he able to fulfill the policy the we

further proceed the loan requirements.

Pre-condition If he agrees with our loan policies & fulfills all the requirement according to our policy the his

request is proceed.

Post-condition To verify that he must return the loan according to the loan requirements

CNIC Input Government CNIC number, name on CNIC, address on CNIC, Gender on CNIC



Pre-condition Users must have a CNIC for further proceed.


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Post-condition After verifying users CNIC if it is legal then we proceed & if it’s not our system cancel the

transaction.

Bank Account Input Bank account

User account must be in government bank.

User must provide the bank documents for completing the process.



Pre-conditions Users must have a government bank account.

Post-Conditions Verifying user’s bank account if it is fulfill the policy then proceed & if it’s not our system cancel

the transection.

Government Job Holders input User jobs institution

Users salary must be 25,000 minimum.

Name of institution



Pre-conditions User must have a permanent source of income.

Post conditions Verifying users job description & his salary if it is fulfilling the policy then proceed & if it’s not our

system cancel the transaction.


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Personal Property Input Users must have a property that is under the government & if he runs away or not pay his loan,

on which we claim.



Pre-conditions Users must have some personal property under the government.

Post conditions Verifying user’s property if it is fulfilling the policy then proceed & if it’s not our system cancel

the transaction.

Interest Input We add 7% of interest on whatever the credit users want.

Output According to our loan policies we take 7% interest on every installment.

Pre-conditions It is compulsory for user to pay the interest & Users must agree our interest policy.

Post-conditions If user is not paying the interest, then we claim his property to get our interest.

Functionality of the system Check requirements of the users & provide online loan.

Requirements Our program wants the user’s current situation that why he needs money for further process.

Furthermore, this program stores CNIC & Bank account no of the user for securing the

transaction. Our user has to provide some guarantee (govt Job holder of some person’s property)

on behave of which we can pay loan to them. As per policy of our system or program attach 7%

of interest on whatever the credit wants.


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Input

(Online Loan System) Figure 1

Output Check all information online & provide loan.

Pre-conditions Our program verified that the all the information given by the user Is correct or authorized, if it

is then it program send the information to further processing.

Post condition Post conditions will be that our system run well for future requirements. If any user wants any

modification it can be easily done.


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Conclusion We want to make loan system easy better & quick for everyone, that’s why we created online

loan system management we created this system according to the needs of the user with this a

person can easily avail the services of loan without any hassles.

Modeling for Online Loan Management System & its Verification

Context Diagram



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Interaction Models

Use case Diagram

(Online loan System) Figure 3

Use Case table for online management system Actor Applicant, loan verifier, loan evaluator, loan collector

Description An applicant request for a loan. After request loan verifier verified its documents and transfer to loan evaluator then loan evaluator may approve or reject the loan.

Data Applicant personal information and its documents.

Stimulus User command issued by online loan and application (OLS).

Response Loan may be approved or may be rejected.

Comments Improve installment policy.


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Sequence diagram

Class Diagram


( (Online Loan System) Figure 4


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Activity Diagram



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State Diagram


States Online Loan System

Stimulus Description

State Applicant request for loan

Loan Verifier Loan verifier verify the documents and forward the details to loan evaluator for approval or rejection.

Loan evaluator Loan evaluator approve the loan if documents are cleared and reject the loan if documents are not cleared.

Report Deliver Report is delivered to the applicant according to their status.

Installments If loan is approved then applicant will pay the instalments according to loan policy.