CHAPTER ONE

INTRODUCTION

Loan service for small organizations individuals was initiated after a number of considerations on the banking system.  Major Banks are mainly guided by financial profit for their shareholders.  They are after minimization of financial risks.  Such strategies don’t leave much room to people on low income or even small organizations that strive for their survival.

          This research studied the computer-based loan scheme management system-as was done in Harvard Trust Bank Enugu.  Loans are readily given to people who have an account (mostly current Account) in the Harvard Trust Bank.  Apart from being a customer to the necessary for giving him loan.  Such conditions may include: provision of collateral security, having at lest one guarantor and filling the bank loan management form.  The collateral security must be a landed property before the bank will accept it.  Also, the guarantor must have an account in that bank and must be a reportable person in the society.

          The role of computer in loan scheme management can never be overemphasized.  The computerized bank loan management form enables bankers to work without stress.  Information can be updated as soon as a positive change occurs.

          I therefore recommend this project to all who may like to have a look at what the topic is all about.  The research work will enable them know the importance of computer in loan scheme management which yield fruitful results as that of other fields of human endeavour.

1.2. STATEMENT OF THE PROBLEM

The events of loan scheme management system have been documented. This research will evaluate the perceived motion of computer-based loan scheme management system.

          In doing so, attempts will be made to answer the following questions:

1. What steps are taken in designing a computer-base loan scheme management system?
2. How can a computer-base loan scheme management be implemented?
3. What are the implications of not meeting the above requirements?
4. How far have the computer-base loan scheme management system gone in achieving the desired goals?

1.3. PURPOSE OF STUDY

The purpose of this study is to bring to check the anomaly associated with the Harvard Trust computer-based loan scheme management system.

          As the loan scheme management is done by man, irregularities are bound to be associated with it.

          If these loan scheme management systems are effectively carried out in the computer, it will yield fruitful results.

1.4. AIMS AND OBJECTIVES

This project will have the following aims and objectives:

1. To shed light on the issue of computer-based loan scheme management system.
2. To create awareness of such management to other banks who may be interested.

To suggest the ways in which a computer-based loan scheme management can be enhanced.

1.5. SCOPE OF STUDY

This research work will access the design and implementation of computer-based loan scheme management system in Harvard Trust Bank Enugu.  It will look into the operations of this bank in the aspect of loan management system.  The interest charged on loans as well as the updating of information as soon as they are received.

1.6. CONSTRAINTS

This project will be limited to the data available at hand, data outside the researcher will not be made use of.

          The limitations militating against this research are financial constraints, time factor and other circumstances.

1.7. ASSUMPTIONS

Accuracy, efficiency and reliability is associated with computer-based loan scheme management system.

          For the purpose of this research, my assumptions can be stated as follows:

1. The application of computer in loan scheme management system has led most banks in business expansion and development projects.
2. A computer-based loan scheme management system leads to fast, accurate and concise deals.

1.8. DEFINITION OF TERMS

A.      LOAN: This is money lent to an individual or an organization on interest payable at a stipulated time.

B.      SCHEME:  This means plan or arrangement

C.      MANAGEMENT:         Group of persons controlling a business.

D.      LOAN SCHEME:         A plan or arrangement on how to lend money to an individual, a group or an organization.

E.      LOAN SCHEME MANAGEMENT:         This is said to occur when the group of persons controlling a business plan on how to lend money to an individual, a group or an organization.

F.      COMPUTER-BASED:  The use of computer in piloting the affairs of any operation.

G.      INTEREST:         Money paid for the use of money lent to one.  Simply, it is the amount charged on loan.

H.      COLLATERAL SECURITY: Property, e.g stocks or bonds, pledged as security for repayment of a loan.

I.       GUARANTOR:    One who supports a borrower in making sure that he/she pays back on the stated time.

J.       ACCOUNT:           Statement of money paid or received.