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CHAPTER I

INTRODUCTION

BACKGROUND OF THE STUDY

The Southern Iloilo Polytechnic College Teachers and

Employees Multi-Purpose Cooperative (SIPC-TEMPC), provides

financial support to its members, alleviates their economic

condition and minimizes loaning from lending corporation. This

aims to re-orient the values and knowledge on cooperative to

fight poverty, and primarily helps the teachers, employees and

the community members to be economically sufficient in a

cooperative way. The vision of the cooperative is a socially and

financially transformed SIPCTEMP Cooperative with united members

valuing the spirits of cooperative as a way of life. That helps

to the cooperative build up with one mission with unity and

spiritually of the every members to make the cooperative

successful. At present, the cooperative is located at Southern

Iloilo Polytechnic College WVCST, Miagao Campus in Brgy.

Igtuba, Miagao, Iloilo and there were already one hundred fifty

one members including the officers and respective committees.

In eight years of existence of cooperative, the processes

being used in their lending system is semi-computerized. As the

member applies for a loan, he/she fills up a loan application

form and passes it to the loan officer. The loan officer submits

the form to the manager for the approval and encodes the loan
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information of the member in a Microsoft Excel spreadsheet for

the computation of the loan deductions. In monitoring of maturing

loans, the bookkeeper also uses Microsoft Excel spreadsheet for

tracking of the statement of loan accounts. The said reports are

being transfer to Microsoft Word document for printing of the

outputs. The storing of file records is also complicated due to

compilation of hard copies. Thus, the developers wish to put up a

database system to make the process become faster and easier in

keeping the file records of every member providing the

transparency of every transactions and recordkeeping is being

made. As noted as one of the major problems is the time

constraints in every operation. Furthermore, the system will

display an output of the members loan records and loan financial

reports to be able to monitor the payments of the members

regarding their loan accounts. The system will also generate and

print the loan financial reports and the members loan records.

STATEMENT OF THE PROBLEM

As the developers conducted an interview with the loan

clerk, such problems were discussed involving the lending process

of the cooperative. Thus, the lending database system attempts to

answer the following questions:

1. How could the loan clerk store and retrieve such file

records of members in easiest and fastest ways?

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2. How could the bookkeeper monitor the members loan

transaction, generate and print loan financial reports and

members loan records in fastest way?

3. How could the loan clerk computes the payments of members

and view the results automatically?

STATEMENT OF OBJECTIVES

General Objective

The study aims to create a lending database system for SIPC-

TEMP Cooperative in order to lessen the work of the loan officer

and to help the bookkeeper in managing and monitoring of loan

transactions of every member.

Specific Objective

To develop an electronic database for storing of files and

loan records of every member.

To provide a database system that will automatically

computes the statement of accounts of every member.

To generate a print out of financial report of every loan

categories and statement of loan accounts of every member in

a fastest way.
To provide an easy access on members account for monitoring

of its loan transactions.

CONCEPTUAL FRAMEWORK OF THE STUDY

Member Member
SIPC-TEMPC
Member Info Info/financial
Lending Database Report
System
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Member Loan
Info USER
User Info

Figure 1.0 Conceptual Framework of the Study

This proposed SIPC-TEMPC lending database system will be use

as storage of members loan information for a systematic record

keeping and organized record filing. The framework above shows

the input, process and output of the system. The inputs are the

information of the member such as a members account number,

name, address, occupation, source of income and the members loan

application. The process will be the lending database system

since the information entered by the user will be keep to the

system and it will be store on members account. Once the loan

information was being stored, it could be view by the user and

he/she can edit and update the information based on the loan

transaction of the member.

For security reasons, the user must have a security password

in order to keep the information be confidential. He/she can also

monitor the loan transactions of every members and print the

records needed for necessary purposes. The output of the study

will be the Members Loan Record and Loan Financial Report.

Through the system, it could generate and print the members loan

record and loan financial report.

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SIGNIFICANCE OF THE STUDY

The developers create a lending database system for the

cooperative for the purpose of easy of retrieving information of

all the loan records of every member of the cooperative. The

system could also stored lots of information being entered by

user. Just in case, the user needs to print a list of every

members loan record, the system can automatically locate the

record through the members account number and the system will

display the record. The system can provide a hard copy for the

user and it can also print all the list of members loan

transactions and their financial statement report.

Through the system, the user can easily monitor the

financial statement report of loan accounts of every member in

order to be able to keep updated on loan transactions of the

cooperative. The records are also secured with password. It can

also lessen the work of the user in computing the payments of

every member depending on their loan types and loan amounts.

SCOPE AND DELIMITATION OF THE STUDY

The lending database system will focus on the information of

every member who applies for loan of the cooperative. The

information includes the members profile such account number,

name, address, occupation, etc. and the type of loan application

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being apply by the member. The system will accept loan

information of the members and it will be enter into the system.

The monitoring of loans will be also included in the study. The

system will display the classification of loans and its present

status based on the monitoring. The financial reports of loans

and the statement of accounts of members will be generated and

can be print through the system.

The acquisition and disposal of assets, budget preparation

and auditing will not be included in the study. The savings

mobilization of every member will be used as an input and will be

included in the members information but it will not be included

in the process of the system.

DEFINITION OF TERMS

Credit - is the provision of resources by one party to another

party where that second party does not reimburse the first party

immediately, but instead arranges either to repay or return those

resources at a later date.

http://en.wikipedia.org/wiki/credit

In this study, the term refers to the loan being applied by

the member.

Lending - to give or allow the use of temporarily on the

condition that the same or its equivalent will be returned.

http://www.thefreedictionary.com/lending
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In this study, the term refers to the process of the

cooperative.

Payment - is the transfer of wealth from one party (such as a

person or company) to another. A payment is usually made in

exchange for the provision of goods, services or both, or to

fulfill a legal obligation.

http://en.wikipedia.org/wiki/payment

In this study, the term refers to the obligation of the

member regarding of his/her loan.

Transaction - an agreement, communication, or movement carried

out between separate entities or objects, often involving the

exchange of items of value, such as information, goods, services,

and money. http://en.wikipedia.org/wiki/transaction

In this study, the term refers to the loan agreement between

the member and the cooperative.

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CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter deals with the different literature and studies

base on different sources such as books magazine, newspapers and

Internet. The related literature is written based on the needed

information related to the system to provide the better

understanding how Lending Database System works and give a brief

theoretical background.

Data processing or information and operation performed upon

data in accordance with procedures, such as recording and

summarizing the financial transaction of a business. An automatic

or electronic data processing the operations are performed by the

computer.
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Computer Security is a technique developed to safeguard

information and information system stored on computers. Potential

threats include the destruction of computer hardware and software

and the loss, modification, theft, unauthorized use, observation,

or disclosure of computer data.

The University of Victoria successfully tests new

computerized loan system for processing student loans. The new

system is the result of a collaborative project involving the

Ministry of Advanced Education, Training and Technology. It

eliminates one of the most time-consuming aspects of applying for

a student loan, standing in line waiting for documentation. In

the past, students had to line up for up to two hours to get the

loan documents to take to their banks. Now, all students have to

do is submit their loan applications to the ministry's student

services branch. Assessment of the application triggers an

electronic communication to confirm that the applicant is

registered in a sufficient number of courses to qualify for a

loan. Once confirmation is made, the ministry mails loan

documents directly to the student. Pat Sarsfield, manager of the

student financial aid office adds that the new system is one of

the first steps in a multi-year project to streamline the student

loan process. According to the ministry, a new program allowing

students to apply for grants and loans over the Internet will be

tested next year.

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http://ring.uvic.ca/98oct16/loan.html

CHAPTER III

METHODOLOGY

PROJECT DESCRIPTION

Using the databases is the way to make the users work easy

and fast securing data and storing for the retrieval of the data

information that being gathered. The SIPC-TEMPC lending database

system can store the information of the member and their loan

transaction such as minor loan, major and prudential loan. By the

use of this database, the user can save more time and effort in

retrieving all records that stored in the lending database

system. This system can access by adding, deleting, updating,

viewing and printing of the information of the member. This is

also the big help to the user for the fast manipulating,

executing and retrieving data.

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To use of the system, the user will log-in using the

appropriate password and username provided by the administrator.

If the user log-on the user can able to add, search, edit,

delete, update, view and print the member and their transaction.

The information that being stored in the lending database system

with security and organized according to the member account

number and their loan transaction depending for the loan category

being applied.

DESIGN SPECIFICATION

The design of the system is based on the analysis of the

developers in the process of the system. As they gathered all the

requirements needed and after conducting an interview with the

client, the developers construct a data flow diagram of the

system through their analysis and interpretation of the work flow

of the process of the system. The diagram consists of context

Loan Records
flow process and data flow by level Members Loan Record
of process. 0
Loan Financial Report
CONTEXT FLOW DIAGRAM SIPC-TEMPC
LENDING
USER
DATABASE
Member Info SYSTEM
Loan Info
Members Loan Record Info

Member Info
Loan Info
Members Loan Info
DATABASE

Loan Records
Members Loan Record
Loan Financial Report
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Figure 2.0 Context Flow Diagram of SIPC-TEMPC Lending Database

System