1

CHAPTER 1
INTRODUCTION
1.1 Project Context
Loans and borrowings are becoming commonplace in everyday life. According to
Mortgage Cadence (2018), 49 percent of borrowers applied to more than one lender, and 72
percent of those who submitted applications to several lenders did so because they discovered a
cheaper pricing. Everyone may face a financial emergency where we borrow money from our
friends, relatives, and cooperatives. On the contrary, Tangub City Multi-Purpose Cooperative,
Lorenzo Tan Multi-Purpose Cooperative, Paglaum Multi-Purpose Cooperative, and NMSCST
Employee Credit Cooperative are some lending cooperatives in Tangub City where most people
and employees borrow money. The loan process in these cooperatives is manual and risky,
mainly health-related because of the pandemic. In a Federal Reserve survey (2019), nearly half of
all respondents complained of the complex application process. Furthermore, the risk of
processing loans manually becomes high due to the threat of COVID-19.
The NMSCST employee credit cooperative is running on a manual basis. There is
currently a problem with this concept, which is seen as time-consuming by loan processors,
especially borrowers. The issue in this cooperative is that the loan processors are having issues
with the present system. They used to excel for the recording of data and manual computation,
and the borrower will physically submit their application form. According to the borrower of the
cooperative that we interviewed, the biggest problem with the manual method is that it requires
numerous signatures from borrowers to complete the loan, which is time-consuming and complex
because the processor is sometimes absent. Additionally, Mellor stated that one problem with the
manual method of processing loans is that it can potentially lose the account information of
cooperative members. They maintain track of paperwork, locate new information, and keep
details safe, which takes a lot more time and effort. As a result, they must enhance their systems
for dealing with loans that anybody with the required equipment and internet connection may
obtain and register for online Mellor (2001).
A Web-based Loan Management system is a computerized application that runs over a
network, primarily the internet, that allows users to store, retrieve, delete, update and modify data
recorded in a database, Jth-Hsin, and Heng-Li (2003). Al-Harbi (2018) stated that a Loan
Management System is an application that helps the cooperatives and borrowers process loans.
The advantages of employing a Loan Management System include increased speed to
completion, which is achieved by removing tiresome, repetitive manual stages in processing loan
applications and loan decisioning. Additionally, because the manual processes in the loan process
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are eliminated, the company can scale up and process greater loan volume. Furthermore, better
tracking and transparency: the system can provide a comprehensive overview of all loans at
various stages; with advanced reporting capability that allows the organization to see financial-
related reports instantly. Better loan processes and results because only one system handles the
entire loan processing. A faster and easier to process multiple loan applications. Moreover, the
system will provide SMS notifications that will help and remind the users about their payments.
This is done via the internet from any location with internet access, Kuhlman (2019).
Therefore, the proponents proposed a system that convert the manual method for
processing loans into a web-based system where the borrower can process their application
online. The loan processor/administrator can locate borrower information without sifting through
a massive number of documents. Another, it will help store the borrowers' data in the database.
The system provides a facility to register the borrowers, generate print-outs of application forms
and loan grace periods, and automate the computation such as total interest payable, monthly
amortization, and net release amount. Aside from that, the system will send SMS notification to
remind the borrowers three days before their due date. The top priority of building and
developing this capstone project is to enhance the cooperatives' excellent quality of services to all
borrowers and loan processors. For this reason, the proponents have designed and developed a
web-based loan processing system for NMSCST Employee Credit Cooperative. The system's
developers need to assure the system's effectiveness and trustworthiness for the NMSCST
Employee Credit cooperative to provide the necessary services to all members.

1.2 Purpose and description

The purpose of the proposed Web-based Loan Management System for NMSCST
Employee Credit Cooperative is to design and develop with the goal of helping the loan
processors and borrowers in the processing of loans online. This solution will help the
transactions for salary of loan to the borrowers and processors who are NMSCST employees
compared to the manual process. The system will generate and automate loans to borrowers
without wasting a lot of time on the procedure online. The program can also assist in the
processing of applicant data and the creation of new loans. They can also provide reliable reports
to borrowers about their accounts. Furthermore, the system will send an SMS notification to the
borrowers reminding them to pay their bills before the due date.
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1.3 Objectives
1.3.1 General Objective
The main goal of this project is to develop a Loan Management system for
NMSCST Employee Credit Cooperative, automating the processes of loan online from
applying to closing of application and keeping of records for every borrower.

1.3.2 Specific Objectives

Specifically, the study aims to;
1. Conduct data gathering through interview to cooperative personnel and
collect data related to Borrowers, Loan Processor, Manager, and Teller which
will be used in the development of the system
2. Develop the Web-based Loan Management System of NMSCST Employee
Credit Cooperative obtaining the following system features:
 To automate the Loan Process,
 To view the records of the registered borrowers,
 To record loan payments,
 To Generate print-out of application form and loan grace periods,
 To automate the computation such as, total interest payable, monthly
amortization and net release amount,
 To send SMS reminders to the borrowers three days before their due
date.
3. Evaluate the system based on the customer’s requirements.

1.4 Scope and Limitation of the Project

The system focuses on designing and developing the Loan Management System using
web-based to replace the existing manual loan process. The borrower can create an account and
register their personal information online through the system. The borrower can process and
apply for their loan online. After filling out the application form, the system can generate a print-
out of the `interest payable, monthly amortization, and net release amount. After checking the
application form, the teller will approve the loan. The system will include sending a system-
generated SMS to remind borrowers three days before their due date. The system also includes
the recording of the borrower's payments to the system's database. The system does not include
the online payment of the borrower. The borrower is required physically to pay their balance.
The borrower can only read the text and cannot reply to the text messages of the system. The
 4

teller can only release and receive payment from the borrower. The collection of payment is not
included in our system because based on our interview, collection is not a problem since the
Memorandum of Agreement between the NMSCST employee credit cooperative and NMSCST
college has been approved that the payment of the borrower/employee is deducted in their
payroll.

1.5 Definition of Terms

Web-based - is a computerized system that operates over a network, specifically the
internet.
Loan - a sum of money borrowed with the intent of being repaid with interest.
Cooperative - a group of people who own and run a business together and share the
profits or benefits.
Loan processors- is responsible for preparing loan files and submitting them for
approval to mortgage lenders.
Lender - a lending institution or individual who extends credit.
Borrower - an individual who borrows money from the cooperative with the intention of
repaying it later, usually with interest.
Teller - a financial employee who deals with customers' transactions.
Amortization - an accounting strategy for lowering the book value of a loan or an
intangible asset on a regular basis over a predetermined period of time.
Interest - is the sum of money received by a lender or financial organization in exchange
for lending the capital.
Due date – the day on which something becomes due, notably a bill payment.
Interest Payable - is the interest amount to a creditor by a person or organization at a
given moment but not yet paid
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CHAPTER II
REVIEW OF RELATED LITERATURE

2.1 Related Literature

According to Stephen Schiavo (2002), a web-based loan processing system is a network-
based automated transaction processing system that collects and distributes loan data. It includes
a server which receives loan data, including daily loan data, from lenders and stores the loan data
in a database. The typical loan processing method is precise and time-consuming, and it
necessitates gathering and confirming information about applicants, their reliability, and their
credibility. Loan servicing software automates these processes and offers lenders and borrowers
with relevant statistics and insights, described Web-based information Systems as information
systems that are based on web technology 12 and are likely to be integrated within conventional
systems such as database and transaction processing systems. Their respective studies showed
that the web-based loan processing system plays a big role in storing data in the database. Studies
also indicate the relevant insights to the borrowers and lenders.
Moreover, another study backs up the need to change the manual procedure of keeping
track of the borrower’s information. According to Garcia Molina a manual system is a set of
integrated components that use human effort in each step of their activities. Manual systems have
computers but they run their activities mostly through human efforts. For example, the employees
have to enter data manually in every file and as a result work is slowed down. This manual
system also leads to data duplication and inconsistency. According to studies, there was an
improvement of keeping the borrowers’ data/records wherein the manager is involved using the
computerized one instead of using manual methods. Additionally, there is evidence that the
Information may be retrieved quickly and easily utilizing an electronic device rather than a
manual process. However, they find that using the manual technique may result in data
duplication, inconsistency, and redundancy as a result of the difficulties in changing the
borrowers' data/information, (Garcia-Molina, 2000). Furthermore, another study of Carl Binder
stated that an effective web-based loan management system would ensure that your loan
application accompanied a complete dialog log and tracking data. They'd also want to know
what's being ordered, when it'll be delivered, and how much it'll cost. Only those that accept loan
package submissions as e-mail attachments can take advantage of Online Loan Processing.
Obtaining a loan is an easy process once you have convinced the loan officer of your capacity to
meet the loan payment criteria. Online loan processing is the ideal solution for those who are too
busy to get into a proper banking transaction of loans. Carl Binder (1998).
 6

2.2 Review of Related System

2.2.1 Technological University of the Philippines Multi-purpose Cooperative

(TUPMMPC) Loan Monitoring and Management System
In this study the developers proposed a loan monitoring management system that
can help the employees in Technological University of the Philippines Manila. The
system will be greatly beneficial to the members especially during the time of
emergencies like a pandemic. TUPMMPC's present manual processing will be automated
by the loan management system, which will increase processing time, transparency, and
data integrity. The system is divided into two parts: an online portal and a mobile app.
Members can apply for a loan in either system, however the admin panel is only available
on the web portal. The admin section has a dashboard, analytics, and a Kanban board for
tracking the loan application's progress. Members of the co-op who applied for the loan
will be informed of the progress of their application at each level, ensuring complete
transparency. The system will advise the credit committee whether or not the loan should
be accepted. Every member will have their own virtual ledger, which will be updated
once their loan has been accepted or declined. The system will also make it easier for
people to apply for a loan, and the entire loan procedure will be transparent because they
will be notified via email about the various stages of their loan application. Furthermore,
the entire loan system will be scalable; the system will be able to manage six enormous
volumes of loan applications at the same time. The credit committee's work will be
greatly improved as a result of this. Carranto (2021).

2.2.2 Jems Loan Automation System

As cited by Morgan, (2006) JEMS Loan Automation System was created for J.P.
Morgan Mortgage Capital (JPMMC) will provide automated straight-through processing
of commercial mortgages for the duration of the loan's lifecycle. JEMS is a back-end
intranet solution that uses the latest service-oriented architecture (SOA) and object-
oriented development technologies to fully automate the loan process from beginning to
end. Increased speed and richness built into the user interface; use of BizTalk that allows
JPMMC to more quickly adapt to changing business processing needs; and Web Services
and.NET remotely used in the service-oriented architecture that allows for greater
flexibility in scaling out individual pieces of the application are among the system's major
strengths.
 7

2.2.3 Web based loan management system of Pride Microfinance LTD

In this study the developers proposed a web-based loan management system that
can help the Pride Microfinance that will keep loan data safe and provide security to the
data online. This system also ensures that Loan Security information is properly recorded
and stored. This is further aided by the LMS's strong and efficient recording system. The
second advantage is the simplicity with which loan information may be tracked. Despite
its focus on loan security, the LMS collects a lot more information regarding loan
records. Other loan sections that must be filled out include interest rates, loan amount to
security value ratios, loan length, and loan expiry dates. Above all, the main advantage is
an effective and efficient method for keeping track of loan clients' information. The loan
management system (LMS) is a standard method of loan management. It enables
microfinance institutions to handle securities in a consistent manner, improving
uniformity across the board. If properly implemented, the LMS will lower loan recovery
expenses, simplify the recovery process, and lower the delinquent rate. Ronald (2012).

2.2.4 Mortech Loan Management System

According to Lincoln, Nebraska (2011), Mortech uses bull's eye solution, a
mortgage technology software firm that offers a completely automated underwriting
system as well as credit and document management platforms to speed up the entire loan
closing cycle, to build an all-inclusive front-end loan management system. They use the
Mortech Loan Management System to give their loan officers the freedom to price
scenarios in an easy-to-use interface with quick results. It also allows administrators to
customize down to the smallest element, giving them a lot of options in terms of price
and margin

2.3 Synthesis
Based on the related literature and system both local and international, their system aims
to improve the current manual process into an automate loan process where they create a web
portal and mobile application so the coop members can apply for a loan online. In the related
system, members of the coop who applied for the loan in this system will receive an email from
the system to be informed of the progress of their application at each level, ensuring complete
transparency. Every member will have their virtual ledger, which will be updated once their loan
has been accepted or declined. While our proposed system is a web-based only not a mobile
application, our system will only send an SMS notification to remind borrowers three days before
 8

their due date. Our system also provides the security of the users' accounts. The user uses their
institutional email to apply for the loan, so only the NMSCST employee can only access the
system. Therefore, the benefits available may be to improve the proposed system. It provides an
efficient and reliable way of keeping records than a manual process that uses a large volume of
papers and files. References from these studies are clearly stated in the reference list. From this
literature review, we will make enhancements and improvements to our system to make it more
profitable and beneficial to its users.

2.4 Technical Background

NMSCST Employee credit cooperative is stand-alone computer software that is designed
in a web-based form that runs locally on a single computer. In building and developing this
capstone project, the developers use some tools which are timely and relevant in order to meet the
demand of providing a better quality of services to the cooperatives. Some of the technical tools
that were used to build and develop the systems are as follows; PHP, HTML, Bootstrap, jQuery,
MySQL, and Xampp Server.
Table 2.1
TECHNICAL TOOLS
Tools Function
PHP -is one of the most popular server-side
languages.
HTML a standardized method of tagging text files in
order to generate font, color, visual, and
hyperlink effects on Web pages
BOOTSTRAP -used as a framework of the system to make
the design easier, faster and well organized.
-is very compact and well written JavaScript
code that is used to help the critical UI
JQUERY
functionality achieved by scripting small
amount of code
XAMPP SERVER - A local web-server; it allows the program to
run the codes by starting the Apache and
MySQL.
 9

Table 2.1
TECHNICAL TOOLS (Continuation)
MYSQL - is a database used to stored data out from the
program that plays a vital role in the process of
building and developing the system.
HTML a standardized method of tagging text files in
order to generate font, color, visual, and
hyperlink effects on Web pages
 10

CHAPTER III
METHODOLOGY

3.1 Requirements Analysis

3.1.1 Project Design
The methodology software development we used for the web-based loan
management system of the NMSCST employee credit cooperative is Agile. Agile
methodology is one of the experimental processes used in the life cycle. Our elegance is
composed of planning, designing, development, testing, and deployment. Planning what
we need in our system will decide the price and capabilities of developing the system.
Next is designing and transforming software requirements into a design strategy,
including the suggested features of the system. Another is development. In developing
the system, the proponents or developers must follow the agreed blueprint plan of the
system, including the correct style of coding and practice regulations in place. Testing on
what are the inadequacies and flaws of the system. Lastly, the deployment in which the
user can use the syst

Figure 3.1: Agile Model

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3.1.2 Current Technical Situation

The figure 3.2 shows the current technical situation of NMSCST Employee
Credit Cooperative. The processor will be the one who will process the application form
submitted by the borrower. After completing the final processing, the teller makes the final
call to approve or disapproved the borrower’s loan application.

Figure 3.2: Credit Cooperative Current Data Procedure

3.2. Requirements Documentation

NMSCST Employee credit cooperative is stand-alone computer software that is designed

in a web-based form that runs locally on a single computer. In building and developing this
capstone project, the developers use some tools which are timely and relevant in order to meet the
demand of providing a better quality of services to the cooperatives. Some of the hardware that
were used to build and develop the systems are as follows: Laptop/PC, Monitor, Keyboard,
Mouse and the Software requirements that we use are Visual Studio 2022, MySQL, Wamp
Server, ITEXMO, and Browser (Google Chrome).

Table 3.1
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HARDWARE REQUIREMENTS

Name Specification Purpose

8GB Ram DDR3 A laptop computer is intended to be more

portable than standard desktop computers
Laptop/PC 500GB HDD
while yet providing many of the same
functions. Laptops include a built-in keyboard
and trackpad and can be 66folded flat for
traveling.

Resolution: 1366 x A computer monitor is a device that displays

768 text and pictures generated by computer
Monitor
programs and serves as a visual interface for
Screen size: 21.5"-27"
users.

Aspect ratio: 16:9

Standard layout,full- A keyboard is an input device that allows users

size,F-keys,number to input text, numbers, special characters,
Keyboard
pad, wired and/or specific functions by pressing the keys
or buttons.
Sensor: Optical, 1000
A mouse is an input device that controls the
DPI sensitivity
movement of the cursor, it is capable to move
Mouse Buttons: 2 buttons,
and select text, icons, files, and folders in a
clickable scroll wheel
graphical user interface (GUI).
USB: Yes

Table 3.2
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SOFTWARE REQUIREMENTS

Name Purpose
Specification

1.65.0 (64-bit) Visual Studio Code is a code editor that aids

programmers in the creation, debugging, and
Visual Studio 2022
correction of code.

SQLyog is a MySQL graphical user interface

application that makes it simple for developers
MySQL 13.0.1 (64-bit)
and database administrators to create and
administer MySQL databases.

3.1.9 (64-bit) WAMP (Windows Apache MySQL PHP) is a

piece of software that PHP programmers use to
Wamp Server
build web applications on their windows
computers.

ITEXMO ITEXMO SMS SERVICES offers services that

allows user to send and receive SMS effortlessly
anywhere in the Philippines

3.2.1 Functional Requirements

 Login Module
The account login is intended both user and admin.
 Filled-in application form
The applicant can fill in the application form
 Loan Payment Report Module
The admin can generate the payment reports of the borrowers
 Balance Module
The borrower can view his/her remaining balance.
 Search Query Module
The admin can search the borrower’s name.
 View borrower’s loan life cycle
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The admin can view the life cycle of the borrowers from start to end of
term of the loan.
3.2.2 Non-Functional Requirements
 Keep things simple and consistent
Simple and harmonic way making UI is very intuitive and needs to
followed.
 Make good use of typography
The typography is taken care very strictly as the need of the system.
 Use color and contrast properly
Color combo of lite and dark is a good way emphasize and done well
in this system.

3.3 Design of Software, Systems, Product and/or Process Architecture

3.3.1 System Architecture
The figure 3.3 shows the system’s architectural design. The processor will input
the borrower details and can add transactions. The teller received transaction details
submitted by the borrower and teller can view the record details inputted by the
processor. After checking the transactions, the teller will be the last to sign the transaction
submitted by the borrower either rejected or approve. The borrower will receive SMS
notification. The Borrower can access any devices such as PC, laptop or cellphone if they
have internet connection.

Figure 3.3: Loan Management System Architecture

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3.3.2 Context Diagram

In figure 3.4, there are (4) entities the processor, borrower. teller and the
manager. The processor will add borrower details, update charge details, and update
setting details and transaction details. The borrower will view his/her loan history, loan
status and transaction, payment history and can also receive SMS reminders from the
system. The teller will receive and pending transaction. The manager will view the
borrowers list, borrower\s charge details, payment list, setting details and loan transaction
details.

Figure 3.4: Loan Management System Context Diagram

3.3.3 Entity Relationship Diagram

As shown in figure 3.5, the diagram illustrates how entities relates to each other.
The diagram shows the Primary Key (PK) of each table that uniquely defines a record in
a database table. It also shows Foreign Key (FK) that is use as reference to a primary key
table. Moreover, it shows table cardinality such as One-to-One and One-to-Many
cardinality that shows the possible number of occurrences in one entity.
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Figure 3.5: Entity Relationship Diagram

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3.3.4 Proposed Data Flow Diagram (DFD)

A. DFD for Manager
In figure 3.6, the Manager can search/query information of the borrowers
to the tbl_payment, tbl_transaction, tbl_borrower, tbl_charges and tbl_setting.

Figure 3.6: DFD for Manager

In figure 3.7 the manager can approve loan transaction from

tbl_transacion.

Figure 3.7: DFD for Manager

In figure 3.8 the manager can view the list of pending transaction from
tbl_transaction.

Figure 3.8: DFD for Manager

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B. DFD for Adding charges

In figure 3.9, the processor can add the borrower details and save to the
tbl_borrower.

Figure 3.9: DFD Adding charges

In figure 3.10 the processor will view the list of pending transaction in
tbl_transaction.

Figure 3.10: DFD for Viewing Transaction

In figure 3.11 the processor will approve the loan transaction of the
borrowers from tbl_transaction.

Figure 3.11: DFD for Approval of Loan Transaction

C. DFD for updated charges details

As shown in figure 3.12, the processor will update the charges
details and save to tbl_charges.

Figure 3.12: DFD for Updated Charges Details

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D. DFD for Settings

As shown in figure 3.13, the processor will update setting details
and save to tbl_settings.

Figure 3.13: DFD for Settings

E. DFD for Teller

As shown in figure 3.14, the teller can view pending transaction
from tbl_transaction.

Figure 3.14: DFD for Teller

As shown in figure 3.15, the teller can receive input payment

details from the borrower to tbl_payment.

Figure 3.15: DFD for Teller

As shown in figure 3.16, the teller can approve loan transaction of

the borrower and save to tbl_transaction.

Figure 3.16: DFD for Teller

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F. DFD of Borrower
As shown in figure 3.17, the borrower can search and view the
filtered transaction and payment details from tbl_transaction and
tbl_payment.

Figure 3.17: DFD of Borrower

In figure 3.18, the borrower will add transaction in tbl_transaction

Figure 3.18: DFD of

Borrower

G. DFD for SMS Notification

In figure 3.19, the system will get all transaction from

tbl_transaction and prepare notification and get all the list numbers of the
borrower from tbl_borrower. The borrower will receive and SMS
notification in tbl_sms.

Figure 3.19: DFD for SMS Notification

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3.3.5 Functional Decomposition Diagram

The figure 3.20 shows the functional decomposition diagram. The diagram
has 4 modules, the borrower, manager, processor and the teller. The borrower can
view, update, search of loan transactions. The Manager can view the records of
the borrowers. The Processor can search and update the settings and the
borrowers. Lastly, the Teller will approve loans, accept payment, set loan status
and generates report.

Figure 3.20: Functional Decomposition Diagram

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3.4 User Interface Design

Figure 3.21: (Borrower’s Dashboard)

Figure 3.22: (Borrower’s Loan History

23
 24

Figure 3.23: (Apply New Loan Dashboard)

Figure 3.25: (Teller’s Dashboard)

Figure 3.24: (Payment List)

Figure 3.26: (List of Loans of the borrower)

 25

Figure 3.27: (Payment Table Dashboard)

Figure 3.27: (Loan Transaction Dashboard)

 26

Table 3.3
DATA DICTIONARY
Table Name Field Name Data Length Not Pk Fk Description
Type Null

tbl_borrower Borrower_id int 11 YES YES YES Unique ID for

borrower
Account Varchar 50 YES Account number
number for borrower
First Name Varchar 50 YES Firstname of
borrower
Last Name Varchar 50 YES Lastname of
borrower
Contact Varchar 50 YES Contact number
number of borrower
Email Varchar 50 YES Name of
Address borrower
Password Varchar 50 YES Password for
borrower
Date of Varchar 50 YES Date of
Registration registration of
borrower
Birthdate Varchar 50 YES Birthdate of
borrower
Address Varchar 50 YES Address of
borrower
Message_id int 11 YES YES YES Unique_id of
borrower
tbl_payment Payment_id int 11 YES YES YES Payment of the
borrower
Borrower_id int 11 YES YES YES Unique_id for
borrower
Admin_id int 11 YES YES YES Unique_id for
Admin
Transaction_ int 11 YES YES YES Unique ID for
id transaction
Payment Varchar 50 YES Amount
Amount payment for the
borrower
Date Paid Varchar 50 YES Date paid of the
borrower
Remaining Varchar 50 YES Remaining
Balance balance of the
borrower
 27

Table 3.3
DATA DICTIONARY (Continuation)
Table Name Field Name Data Length Not Pk Fk Description
Type Null
tbl_admin Admin_id int 11 YES YES YES Unique_id
for admin
LastName Varchar 50 YES Lastname of
the admin
FirstName Varchar 50 YES Firstname
of admin
Password Varchar 50 YES Unique
password
for the
admin
Position Varchar 50 YES Position of
the admin
tbl_transaction Transaction_id int 11 YES YES YES Unique ID
for
transaction
Borrower_id int 11 YES YES YES Unique_id
for
borrower
Admin_id int 11 YES YES YES Unique_id
for admin
Settings_id int 11 YES YES YES Unique_id
for Settings
Charges_id int 11 YES YES YES Unique_id
for Charges
SMS_id int 11 YES YES YES Unique_id
for SMS
Loan Amount Varchar 50 YES Loan
amount of
transaction
Type of Loan Varchar 50 YES Type of
loan of
transaction
Purpose Varchar 50 YES Purpose of
transaction
Mode of Payment Varchar 50 YES Mode
payment of
transaction
Loan Term Varchar 50 YES Loan term
of
transaction
Date Approved Varchar 50 YES Date
approved by
transaction
Status Varchar 50 YES Status of
transaction
 28

Table 3.3
DATA DICTIONARY (Continuation)

tbl_SMS SMS_id int 11 YES YES YES Unique ID

for SMS
Borrowers_id int 11 YES YES YES Unique ID
for
borrower
Transaction_id int 11 YES Unique ID
for
transaction
Message Varchar 50 YES Message for
SMS
notification
Date Varchar 50 YES Date for
SMS
notification
Tbl_Settings Settings_id int 11 YES YES YES Unique ID
for Settings
Loan Interest Varchar 50 YES Settings for
Interest
Rate
Loan Term Limit Varchar 50 YES Settings for
Loan Term
Limit
tbl_Charges Charges_id int 11 YES YES YES Unique ID
for Loan
Charges
Name Varchar 50 YES Name of
charges
Amount Varchar 50 YES Charges
amount
Type Varchar 50 YES Charges
type
tbl_assigned assignedcharges_id int 5 YES YES Unique ID
charges of assigned
loan
charges
Transaction_id int 5 YES YES Unique ID
of
transaction
Charges_id int 5 YES YES Unique ID
of loan
charges
tbl_assigned assignedcharges_id int 5 YES YES Unique ID
charges of assigned
loan
charges
 29

Table 3.3
DATA DICTIONARY (Continuation)

Transaction_id int 5 YES YES Unique ID

of
transaction

3.5 Development and Testing

3.5.1 Development
Before the development of the Web-based Loan Management System of
NMSCST Employee Credit Cooperative, the developers undertake the
following steps;
 First, the SICT instructor suggested to the developer about the loan
process of NMSCST Employee Credit Cooperative is manually operated
and it should change into a web-based loan processing system.
 Second by asking the administrator of the cooperatives if the developers
are allowed to develop the loan processing system to be used for loan
processing of the Credit cooperative.
 Lastly the developers started creating a design to be used for the loan
processing system.

3.5.2 Alpha Testing

The modules and checklist of activities/tests to be executed in the system are

shown in the following tables below.

Table 3.4
MODULE SPECIFICATION

Module Activity Duration

Session Management ● Can logged in admin 1 min.

Module ● Can logged out
admin
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Table 3.4
MODULE SPECIFICATION (Continuation)
Registration Module ● Can register 5 mins.
employees/borrowers
’ information

Loan Application Module ● The borrower can 15 mins.

process loan

Approve/declined ● Admin can 5 mins.

Application Module approve/declined
loan application

View Registration Module ● Can view the 3 mins.

borrowers loan
information
● Can consolidate loan
report

3.5.3 Beta Testing

The developer’s target is intended for developing a loan management system that
handled by Admin, and the main focus of setting of all the important databases which is
the flow of loan processing, and how provide all the respondents or a user’s of loans will
be monetized by the developer of loan system.
The initial objective of beta testing of loan management system is allowing all
users/staffs and developers to advocate and test the overall system a how the system
functions. Also, the features that designed in the system are ended up of ratifying or
tested already before being planned to approved by the developers. And also, beta testing
belted or applied and a functionable response message box that can user will send their
feedback of what they experience.
It is necessary to involve must of developer groups to undergo testing in the system so if
there’s something wrong or mistake that the developer of the system didn’t notice so they
will give suggestion or changes of the system. And both internal and external testing of
 31

the system will undergo beta testing procedure which to develop a change on it. By the
Admin, they will lead on how to propose and guide a user to test their system.
And after, all the feedback that collected from the beta testers will handled of developer
to take analyze of what changes they want to refurbished in the system. And then fixing
some functionalities that can be added in the system, like features or styling.
After all the previous review of the system, the final propose system will successfully
published. And this time no insignificant changes to create during this finalization,
because this system must be done very conscientiously.

3.5.4 Evaluation instrument

Instruction: Please put an (x) in the appropriate box for each statement

Table 3.5
QUESTIONNAIRE

Performance Very Good Good Fair Poor Very Poor

The system provides an easy way of

creating accounts and login.
The system provides easy way of adding
new borrower account.

The system generates the payment report

of the borrower.
The system provides effortless way of
adding borrowers’ personal data.
The system provides efficient way of
adding borrowers with a more organized
result.

The system provides search button for

fastest way of searching borrower’s
information.
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Table 3.5
QUESTIONNAIRE (Continuation)

The system provides easy way of editing

borrower’s information.

Security
The system provides secure accounts of
the borrower.

The system provides easy way of

updating of borrower’s accounts.

The system provides security to all

information.

Services

The system correctly generates and

prints reports of loan grace periods.

The system correctly records of loan

payments.

3.5.5 Data Analysis Plan

In order to identify the level of acceptance of the system, weighted mean and
thematic analysis were used as the statistical tools to analyze the data obtained from
survey questionnaire floated to the participants of this study. The data were tabulated and
analyzed, employing the 5-point Likert-scale.

3.5.6 Rating Scale:

Gathering of data and information will be done by fielding a questionnaire to the
concerned end user(s). It is a 5-item questionnaire where responses are rated in 5-1-point
scores with respective verbal interpretation for each point as follows:
Points Verbal Interpretation
5 points Very Good
4 points Good
3 points Fairs
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2 points Poor
1 point Very Poor

Table 3.6
Likert Scale Table
Range of the
Points Interpretation
Weighted Mean
4.6 – 5.0 5 Very Good
(Functionalities of the system are well
understood by the users))
3.7 – 4.5 4 Good
(Functionalities of the system are somewhat
understood by the user) or accepted with minor
condition)

2.8 – 3.6 3 Fair

1.9 – 2.7 2 Poor
(Functionalities of the system are not clear by
the user) / Accepted with major condition.
1.0 – 1.8 1 Very Poor
(Functionalities of the system are not
understood by the user)

The gathered data will be the collated and analyzed using appropriate statistical tools
such as Weighted Arithmetic Mean, Standard Deviation and the Pearson Product-Moment
Coefficient of Correlation.

3.5.7 Statistical Treatment

The Weighted Arithmetic Mean
This is used to determine the average responses of the end users to the
given questionnaire that will determine the acceptability of the newly developed
Web-based Loan Processing of NMSCST Cooperative Loan Processing System.

3.5.8 Implementation Plan

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Table 3.7
PLANNING TIMELINE

Strategy Activities Persons Involved Duration

Gathering Information Interview Cooperative and 3 weeks

Proponent
System Development Developing the Proponent 6months
System
System Testing Testing the system’s Proponent 1month
functionality

System Installation Installation of the Proponent 3weeks

system
Orientation Orient of all users of Proponent 2hours
the system
System Finalization Finalization Proponent 2weeks