Revisions-Frejoles Et - al.LMS FINALDOCU2020

Loan Monitoring System of San Gabriel Rural Waterworks and Development
Cooperative with SMS Notification
A Capstone Presented to the Faculty of the College of

College Studies and Information Technology
Immaculate Concepcion I-College of
Arts and Technology
Sta. Maria, Bulacan
In Partial Fulfillment of the Requirements for the Degree of

Bachelor of Science in Information System
Frejoles, Gilbert Norris L.

Gugulan, Vince Joseph M.
Mangmang, Reynald B.
July 2020
Approval Sheet
In partial fulfillment of the requirements for the degree of Bachelor of Science in

Information Systems, this Capstone entitled “Loan Monitoring System of San Gabriel
Rural Waterwork and Development Cooperative with SMS Notification” has been
prepared and submitted by Frejoles, Gilbert Norris L., Gugulan, Vince Joseph M., and
Mangmang, Reynald B. who are hereby recommended for oral examination.
July 2020 Mr. Ferdinand R. Arca, Jr.

Adviser
Approved in partial fulfillment for the degree of Bachelor of Science in

Information Systems by the Committee for Oral Examiners.
Mr. Michael C. Puno Mr. David Roldan O. Ponce

Member Member
Accepted and approved in partial fulfillment of the requirements for the degree of
Bachelor of Science in Information Systems.
July 2020 Ms. Raquel T. De Jesus

Dean
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Acknowledgement
This achievement could not transform into reality without the following
individuals who assisted us in various ways. We would like to recognize everyone. First,
to our Almighty God who dependably guided and lighted our way, without Him, we
cannot do anything in the world.
To Ms. Raquel De Jesus, the CSIT Dean of Immaculate Conception I-College of
Arts and Technology, for supporting and guiding us and for permitting us to conduct this
study.
To Mr. Jovy Jay Cabrera, our class adviser, for the lessons and aides you have
given us in order to finish this study successfully. We are grateful to you sir.
To Mr. Ferdinand R. Arca Jr., our thesis adviser, for sharing your expertise and
guidance in the validation of this research study, for reminding us not to give up and for
being a good adviser to us.
To Mr. David Roldan O. Ponce, and Mr. Michael C. Puno, our panelists, for
supporting and guiding us to make project possible and for giving advices in order to
make the system better.
Most especially to our adored parents, Mr. And Mrs. Frejoles, Mr. And Mrs.
Gugulan and Mr. and Mrs Mangmang, whom with all their might molded us to become
who we are today. Thank you for giving us everything, for loving us wholeheartedly and
for believing in us. We love you!
To our classmates who inspired us in our studies and helped us when we had
problems. To all of you, thank you for your undying support.
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Abstract
Loan Monitoring System is a software that will transform the classic and manual
recording and monitoring process of payment and loan of the clients into a computerized
process. The current problem of the company includes not secured recording of files and
the not accurate transactions. The saving of record was a very tedious process.
The objectives of the proposed system focus on security, accuracy, and also
speed. The records of payment and loan is also secured. The computation of loan and
payment is accurate for every transaction. The member account records are easily saved
in terms of speed and it can also easily overview the details of loans and payment. The
SMS Notification is also sent as payment service including the due-date of payment. The
result of weighted mean of 4.25 is registered as the highest by the System Security Test,
followed by 3.96 of System Performance Test, 3.95 of System Usability Test, 3.79 of
System Reliability Test and the lowest is 3.67 from System Functionality Test. Over all,
the result of system evaluation is equal to 3.92 presented as “Very Good”. The result of
the evaluation shows that the system is functional.
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Table of Contents
Approval Sheet....................................................................................................................ii
Acknowledgement..............................................................................................................iii
Abstract...............................................................................................................................iv
Chapter 1............................................................................................................................1
Introduction......................................................................................................................1
Project Context................................................................................................................3
Purpose and Description..................................................................................................4
Objectives of the Project..................................................................................................5
Specific Objective............................................................................................................5
Scope and Delimitation....................................................................................................5
Scope............................................................................................................................5
Limitation....................................................................................................................6
Significance of the Study.................................................................................................6
Chapter 2............................................................................................................................8
Review Related Literature...................................................................................................8
Chapter 3..........................................................................................................................18
Technical Background.......................................................................................................18
Technologies to be used.................................................................................................19
How the project will work?...........................................................................................21

Chapter 4..........................................................................................................................23
Methodology of the Study.................................................................................................23
Research Method...........................................................................................................23
Data Gathering Instruments...........................................................................................25
System Development Process........................................................................................26
Requirements Analysis..................................................................................................27
Operating Cost...........................................................................................................27
Cost Benefit Analysis................................................................................................30
Development Cost.....................................................................................................30
Operational Feasibility...................................................................................................32
Economic Feasibility.....................................................................................................32
Fishbone Diagram......................................................................................................33
Schedule Feasibility.......................................................................................................33
Gantt Chart.....................................................................................................................33
Requirements Documentation.......................................................................................36
Input Process Output (IPO) Model............................................................................36
Data and process modeling........................................................................................37
System Flowchart......................................................................................................40
Use Case Diagram.....................................................................................................45
Design of Software/System...........................................................................................46
Entity Relationship Diagram.....................................................................................46
Data Dictionary..........................................................................................................47
Chapter 5..........................................................................................................................55
Summary, Conclusion and Recommendation....................................................................55
Summary........................................................................................................................55
Conclusions....................................................................................................................56
Recommendation...........................................................................................................57
Bibliography......................................................................................................................58
List of Tables
Table 1. Development Phase Software Requirements.......................................................20
Table 2. Implementation Phase Software Requirements...................................................20
Table 3. Implementation Phase Hardware Requirements..................................................21
Table 4. Operation Cost (Existing System).......................................................................28
Table 5.Operation Cost (Proposed System).......................................................................29
Table 6. Cost and Benefit Analysis...................................................................................30
Table 7.Development Cost................................................................................................31
Table 8. Gantt Chart of Activities (Documentation).........................................................34
Table 9. Gantt Chart of Activities (Proposed System)......................................................35
Table 10. Tbl_User............................................................................................................47
Table 11.Tbl_personal_info...............................................................................................47
Table 12.Tbl_loan..............................................................................................................48
Table 13.Tbl_remit............................................................................................................48
Table 14.Tbl_requirements................................................................................................49
Table 15.Tbl_lastpayment.................................................................................................49
Table 16.Tbl_Amortization...............................................................................................49
Table 17. Tbl_share...........................................................................................................50
Table 18. Tbl_sms_send_messages...................................................................................50
Table 19.Tbl_mode_of_payments.....................................................................................50
Table 20. Tbl_interest........................................................................................................50
Table 21.Likert Scale.........................................................................................................51

Table 22. Weighted Mean and Description of the Respondents’ Response on the System
Functionality Test..............................................................................................................51
Table 23.Weighted Mean and Description of the Respondents' Response to the System
Usability Test.....................................................................................................................51
Table 24.Weighted Mean and Description of the Respondents' Response to the System
Reliability Test...................................................................................................................52
Table 25.Weighted Mean and Description of the Respondents’ Response on the System
Performance Test...............................................................................................................53
Table 26.Weighted Mean and Description of the Respondents’ Response on the System
Security Test......................................................................................................................53
Table 27.Summary of the Weighted Mean and Description of the Program Evaluation
Test....................................................................................................................................54
List of Figures
Figure 1: Technicality of the Project.................................................................................18
Figure 2. FURPS Quality Model and its Components......................................................24
Figure 3. Agile Scrum Development Cycle.......................................................................26
Figure 4. Fishbone Diagram..............................................................................................33
Figure 7. Input Process Output (IPO) Model.....................................................................36
Figure 8. Data Flow Diagram or Level 0..........................................................................37
Figure 9. Data Flow Diagram or Level 1..........................................................................38
Figure 10. Data Flow Diagram or Level 2........................................................................39
Figure 11. Flowchart for Login and Records.....................................................................40
Figure 12. Pending and Loan Application Case................................................................41
Figure 13. Payment Case...................................................................................................42
Figure 14. Penalty Case.....................................................................................................43
Figure 15. Reports Case.....................................................................................................44
Figure 16: Use Case Diagram for Administration.............................................................45
Figure 17: Entity Relationship Diagram...........................................................................46

List of Appendices
Survey Questionnaire.........................................................................................................60
Screen Shots.......................................................................................................................62
User’s Manual....................................................................................................................67
Relevant Source Code........................................................................................................73
Grammarians Certificate..................................................................................................100
Researcher’s Profile.........................................................................................................101
Chapter 1
Introduction
In the latest advancements, the loan processing system has changed drastically
and still expected to evolve. The invention of cloud-based payment platforms has helped
financial organizations to get better a way lot. It helps with faster and continuous service,
up-to-date functions with newer functions, and much more. This has also paved the way
to options such as initiation of loans from anywhere through the internet.
For many financial institutions, the process of taking a loan from application to
closing can take months. It involves numerous bank employees, including business
development officers, analysts, credit committee members, loan administrator and outside
closing agents. As the prospective loan advances from stage to stage, bottlenecks are
common as a result of Back and forth with the borrower for required financial
documents, unbalanced credit analyst workload, unresponsive third parties, unclear loan-
decisioning rules that require added discussion, delay as the credit file is passed between
parties, and hunting down the credit file when the bank has to report to the borrower on
progress.
Short term lending is already existing in western countries and now becoming
popular in the Philippines and India as well. Pay-day loans or unsecured loans is usually
referred to as short-term lending. Lending startups have already offering these services
and mainstream banks are slowly moving towards short-term lending products.
Loan Monitoring System, also known as (LMS), is a system that monitor the
records of loan. The Loan Monitoring System is a service provider for the customer and
company that is interested in loan. The LMS is a database management used to automate
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the loan service of financial institutions. It serves the purpose of easy file retrieval and
entry. The automation of loan services not only provides secure service of the loan details
of the customer and the organization but also serves the organization huge sums of
money that would have been spent on stationary in a case where file system is used
(Raikwah, 2016).
Initially, financial process usually involved a lot of paper-works and mandate a
huge amount of storage space. But then, the digital platforms have given a total face-lift.
This has changed the lending process and even small-scale financial organizations are
providing digital services (Rajah, 2016).
The short message service (SMS) technology is one of the most stable and most
widely used mobile communication methods after phone calls. Most students of tertiary
institutions carry mobile phones which is capable of receiving short messages as a means
of event notification. In principle, text message can be used either as a one-way
communication to provide the user information such as reminder, alert, etc., or as a two-
way communication that enables the user to send and receive information (such as
question and answer). Event notification (through SMS) is a well-known way of
notifying users about an event scheduled to take effect within a particular period in an
institution (Olaleye, Eboda, & Awolere, 2015).
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Project Context
The San Gabriel Rural Waterworks and Development Cooperative was
established in the Cooperative Development Authority in December 1997. It was led by
Sangguniang Barangay of San Gabriel. The concept was built because of the request of
the people of San Gabriel to continue handling and managing the barangay’s previous
project on water services.
They have twenty establishers or cooperators and P15, 000 investment to start the
communication to head the old water station. They have an agreement of two
organizations of water station to transfer all assets, responsibilities to the new water
station, the San Gabriel Rural Waterworks and Sanitation Association. The cooperatives
declare services to the people of the San Gabriel. The members agreed to the service
cooperative. The service cooperative will serve the people of the San Gabriel and they
establish the newly registered company, the Rural Waterworks and Development System.
During the interview conducted by the proponents to the general manager of San
Gabriel Rural Waterworks and Development Cooperative, the current process of the coop
when accepting applications for lending are the following: A loan application will be
given to the applicant who wants to apply as a member of the Coop. There are also
requirements that they need to submit on applying as a member. When the requirements
are already submitted, the staff will now process the loan application of the applicant
including his/her member fee. All the information of the applicant will be encoded and
saved in the storage file. It will take a one-day process to receive the loan. When the
client wants to pay his/her loan, the employee will record all the payment transactions to
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MS excel. The staff of the Coop are also the responsible for giving the member the
receipts to every loan processed.
According to the observation made by the proponents to the general manager, it
appears that the company needed a more organized way of collecting data to be used in
the preparation of the Loan Monitoring System. In fact, the proponents discovered that
the current process of the company is not conductive to use. In this scenario, the
proponents suggested to use and allow the project presented. The problem of San Gabriel
Rural Waterworks and Development Cooperative is that they used MS Excel and a
Ledger for everyday records of their transactions. MS Excel has rows limit. Also, their
transaction records are not secured, anyone can easily access their records. Lastly, their
process of loaning is very slow because they need to find the transaction record or history
of a specific client in some folders and envelope to be able to know his/her status first.
After hearing all the concerns, the proponents planned to develop a system that will help
them improve their process. The system will help to provide more accurate computation
and generate the payment schedules of the loans. It will also secure the data of the clients
and speed up the process of searching information of the member/borrower.
Purpose and Description
The proposed Loan Monitoring System with SMS notification aims to provide
easy record, pay loans, access the history of the loans, and also print reports and receipts.
The system will be more useful and more productive compared to their previous manual
system. It will improve the monitoring of report and it will provide effective and efficient
services to borrowers. It will greatly enhance the business process.
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The system will produce many records and reports. The database is more relevant
to the previous records from their saved information without any duplicate data. The
virtual loan payment is used by computer devices. The loan payment enables to see how
much they loan and how much is the interest including the quick searching for the history
of loans. The loan application of the client must be easily saved to the database.
Objectives of the Project
This proposed system aims to create a Loan Monitoring System for San Gabriel
Rural Waterworks and Development Cooperative with SMS Notification.
Specific Objective
 To maintain the records of loan transactions which provides more accurate
computation and generate the payment schedules of loans.
 To have a secured system for storing data or information of the clients.
 To create a function that can speed up the process of searching information such
as account details of the borrower.
Scope and Delimitation
Scope
The proposed system focuses on the loan process and monitors the statement of
account in each member as a report.
 Login Module – The system makes data and information secure by providing
User ID and Passwords to prevent unauthorized access.
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 Application Form – The member are required to give all information to the clerk
to be saved on the database. All the information of each member should be listed
in the application form for record purposes.
 Loan Payment Transaction – The system can process the loan payment and
release a receipt to the member.
 Generating Reports – The system can generate reports of payment, the list of
loans, and statement of account of each member.
 File Management – Members Accounts, Users, Loan, Payment, and Schedule of
payments will be saved in the database to secure all files and to keep files
organized.
 SMS Notification – There are two different types on sending messages of due-
dates and payments.
Limitation
The loan payment method will be a cash payment only. The payment term was
modified based on the monthly amortization and when the mode of payment is
diminishing. The SMS notification will be sent automatically during the due date or
schedule of payment and after payment. The system focuses on the monitoring of loan
and processing of payment.
Significance of the Study
The reason for conducting this project is to help the cooperative to be more
accurate when it comes to the processing of loan transactions to the members. The
proposed project can help them in providing a better service to its members. It can help
future researchers gain an idea about a loan monitoring system.
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The following are the people who can benefit from the study.
Owner. The owner can plan more strategies for the organization of the company
to enhance their transactions and provide decision-makers.
Clerk. They can accurately compute the loan of a member with the help of the
proposed system and transact without any hassle.
Administrator. This study helps the admin to organize the record and monitor
the member’s loan and account. This also helps to save time.
Member. They are the ones who can borrow money without filing a membership
application.
Proponents. The proponents can learn from their study because they can apply
their knowledge in terms of system development.
Future Researchers. This study will contribute knowledge as a reference when
developing a system same as this.
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Chapter 2
Review Related Literature
This chapter provides related literature and studies that served as the foundation
of the research project.
Credit Monitoring System
Credit Monitoring is an integral part of lending activity. Banks have a great
responsibility to maintain the quality of the assets and to recover the interest and other
dues in time. Though adequate precautions are taken during assessment and sanction of a
loan, a banker has to be more vigilant after sanction of the loan. Unless early warning
signals are captured, a bank may not be able to take proper remedial measures to arrest
the slippage in the quality of the asset. Banks need to put in place a very sound and
effective credit monitoring system for watching the borrower’s account from various
angles. Monitoring of the borrower accounts on an ongoing basis will facilitate
foreseeing the problems and taking corrective measures to meet the adverse impact.
Effective credit monitoring will ensure proper usage of loan funds and reduce the loan
losses which will in turn maximize the returns to the Banks (Elyasiani & Zhang, 2017).
Monitoring Payment Systems
Tan & Trinidad (2018) described research into online electronic monitoring
payment systems that focus on the aspects of payment systems that are critical for the
acceptance of end users. Based on the earlier research and a diary study of payments
with an online payment system and with online banking systems of a reputable bank, a
8
set of 12 interaction design guidelines was proposed. The guidelines have been applied
during the implementation and redesign of a new payment system. A computer scientist
with interests in human-computer interaction, user experience, interaction design, and
project management; he is a project manager and co-founder of Mobilnova.com. Panos
Markopoulos is a computer scientist doing research in intra-family communication,
ambient intelligence, and interaction design for children; he is an Associate Professor in
the Department of Industrial Design of the Eindhoven University of technology.
Matthias Rauterberg is a computer scientist and psychologist with interests in
entertainment computing, responsive environments, and user modeling; he is a Full
Professor and head of the Designed Intelligence research group at the Department of
Industrial Design of the Eindhoven University of Technology.
Information Systems
Information Systems Research (ISR) is an author-friendly peer-reviewed journal
that publishes the best research in the information systems discipline. Its mission is to
advance knowledge about the effective and efficient utilization of information technology
by individuals, groups, organizations, society, and nations for the improvement of
economic and social welfare. The journal covers a wide variety of phenomena and topics
related to the design, management, use, valuation, and impact of information
technologies at different levels of analysis. ISR publishes research that examines topics
from a wide range of research traditions including cognitive psychology, economics,
computer science, operations research, design science, organization theory, organization
behavior, sociology, and strategic management. This study works to be as an advance
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knowledge of the efficient of the information technology for the improvement of the
social and economic welfare (Raikwah, 2015).
Transactions Accounts and Loan Monitoring
Dia (2016) provided evidence that transactions accounts help financial
intermediaries monitor borrowers by offering lenders a continuous stream of data on
borrowers’ account balances. This information is most readily available to commercial
banks, but other intermediaries, such as finance companies, also have access to such
information at a cost. Using a unique set of data that includes monthly and annual
information on small-business borrowers at an anonymous Canadian bank, the authors
find a significant relationship between loans becoming troubled and the number of prior
borrowings in excess of collateral. Since the bank monitors the value of collateral
(defined as accounts receivable plus inventory) at high frequency through the transactions
account of the borrower, this unique access to useful information gives banks an
advantage over other lenders. The authors also find that banks more intensively monitor
loans that have a higher number of violations of the collateral limit. This paper
substantially revises and supersedes the paper "Checking accounts and bank monitoring".
In this study, the transaction account and loan monitoring help the lenders to monitor the
borrowers' data of account's balances, but a disadvantages also for the lenders because the
banks can also access this transactions.
Monitoring, loan negotiability, and firm value: The role of lending syndicates
According to Enzo Dia (2016), the positive response in capital markets to
announcements of private financings is well documented and typically rationalized as a
reflection of valuable monitoring and screening services provided by banks and other
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private lenders. This paper investigates the hypothesis that the capacity to renegotiate
private debt contracts relatively inexpensively complements monitoring as a source of
value to borrowers. The context for the study is lending by syndicates of private lenders.
As the number of lenders increases, contracting costs increase and the value associated
with the capacity to renegotiate should decline. Evidence supports this hypothesis.
Additional tests were conduct to determine whether the results are robust to alternative
interpretations, such as information leakage or the prospect that syndicate size proxies for
information-related variables. Syndicate size remains related to the scale of the market's
reaction, after taking various borrower and loan characteristics into account. This studies
the increase number of syndicate lenders that renegotiate private debt contracts
Loan Monitoring and Bank Risk
Raikwah (2015) studied two issues: the relationship between loan monitoring and
loan risk and the effects of regulations on banks' incentives for investments in loan
monitoring systems. He described a dynamic monitoring of loans as an optimal stopping
problem where the bank stops monitoring loans when it has become sufficiently certain
that the loan is of good or bad quality. This process increases the incentive to hold risky
loans, which in turn increases the cost of regulatory compliance when the regulator seeks
to limit the risk taken by banks. The profitability of improved monitoring must be
balanced against the increase in the cost of regulation, and we show that the tradeoff is
always negative. This can explain the trend in banking of switching away from the
monitoring of existing loans and instead investing in credit scoring systems, which can
improve the initial lending decision, but eliminates certain classes of borrowers.
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Loan Management System
Loan management product aims to help financial institutions deliver excellent
customer service whilst managing business and internal processes more efficiently. It can
improve the organization by: Recognizing that legacy financial systems are common and
connecting them with modern technologies can be challenging. As a result, the Loan
Management System contains a range of connectors making it possible to bring together
an integrated and unified system, which includes the legacy systems. Making available a
range of loan related tools and forms, including; credit analysis, amortization schedules,
payment flexibility, interest rates, day count conventions and due date management.
Giving an easy to use administration module that allows one to securely manage access
and control permissions. Automating alerts that act as reminders and prompts. This study
is all about the advantages of a modern loan monitoring system (Diaz & Vanhoose,
2017).
Loan Monitoring and Bank Risk
Diaz & Vanhoosen (2017) studied two issues: the relationship between loan
monitoring and loan risk and the effects of regulations on banks' incentives for
investments in loan monitoring systems. They described dynamic monitoring of loans as
an optimal stopping problem where the bank stops monitoring loans when it has become
sufficiently certain that the loan is of good or bad quality. This process increases the
incentive to hold risky loans, which in turn increases the cost of regulatory compliance
when the regulator seeks to limit the risk taken by banks. The profitability of improved
monitoring must be balanced against the increase in the cost of regulation, and they
showed that the tradeoff is always negative. This can explain the trend in banking of
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switching away from the monitoring of existing loans and instead investing in credit
scoring systems, which can improve the initial lending decision, but eliminates certain
classes of borrowers.
Loan monitoring system RRL
In Lending institutions, having an automated Loan System that store, update,
retrieve and monitor data efficiently and faster is an edge to be more competitive and
progressive in their business. The concepts concerning the processes of the system and
similar studies related to the system were highlighted on the study. This studies the faster
process of a loan monitoring system (Manlagnit, 2015).
Automated Loan Lending Management System
Lending is the principal business activity for most commercial banks. The loan
portfolio is typically the largest asset and the predominate source of revenue. As such, it
is one of the greatest sources of risk to a bank’s safety and soundness. Whether due to lax
credit standards, poor portfolio risk management, or weakness in the economy, loan
portfolio problems have historically been the major cause of bank losses and failures.
Effective management of the loan portfolio and the credit function is fundamental to a
bank’s safety and soundness. Loan portfolio management (LPM) is the process by which
risks that are inherent in the credit process are managed and controlled. Because review
of the LPM process is so important, it is a primary supervisory activity. Assessing LPM
involves evaluating the steps bank management takes to identify and control risk
throughout the credit process. This literature is all about the security of the loan system
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and Loan portfolio management takes to identify and risk e-credit process (Manlagnit,
2015).
Lending System
The goal of loaning System of KMPC is to help each member and staff to make
process easier and faster. The study is concentrating only in the loaning transaction of the
coop and general services. The following are not covered by this study: Other services of
the cooperative like E-load, catering services, financing loan and consumer loan.
Transaction of payment of the borrowers are automatically deducted by the DepEd to
their net pay is a concern to this study. The loaning system helps the staff and members to
make the process easier and faster (Lee, 2018).
Multiple Borrowing
Agarwal (2018) conducted a study on multiple borrowing in the Philippines, a
pilot effort to understand the incidence of multiple borrowing and how its correlates in a
particular community. It complements other data sources, reflecting different notions of
multiple borrowing and strengths and weakness in the quality of information collected.
The data suggest that households represent only a small fraction of households in this
community. Among household, the incidence of multiple borrowing is large, multiple
borrowing means borrowing from all possible sources of credit. If by multiple borrowing,
the proponents mean borrowings from other, not a single household in the sample report
themselves to be borrowing from multiple sources. This could be due to sampling error or
households could be deliberately providing false information. Data from the other data
collection effort can serve to validate this finding. Multiple borrowing appears to be
14
consumption and crisis driven, with few of the households reporting that the multiple
loans are being used explicitly for business purposes. This is associated with a relatively
large fraction of households & about a fifth' missing payments over the months preceding
the survey. However, there is a limited evidence to suggest that multiple borrowers are
substantially more delinquent than the average indebted household. This literature studies
the advantages and the limitations of the multiple borrowing.
Financial transactions through manual system
The concept of automation has been variously applied in most computing fields.
This involves utilization of computing or electronic devices to undertake the tasks that
are being handled by people. It is a pertinent factor in a profitable and soundly run
financial institution. Financial transactions through manual system of operation are prone
to errors and imagined complexities, making it so difficult a task of maintaining all
entries of users account, search records of activities, handle loan deduction errors and
generate reports. Computers running automated system are targeted towards eradicating
the menace – hence making the underlying activities efficient and providing the fast
response needed. This studies the disadvantages and the limitations of the manual system
of financial transaction (Kingsley et. al., (2015).
Screening and Monitoring by Inattentive Corporate Loan Officers
Attention is a scarce resource that can have profound effects on how individuals
make decisions. When balancing multiple tasks, situations inevitably arise that require
one to focus on one task, while substituting valuable cognitive resources away from other
tasks. For example, a doctor caring for multiple patients might divert his/her attention to a
15
patient presenting urgent symptoms of severe pain. A county police officer may choose to
more carefully patrol one particular neighborhood if it has recently experienced high
levels of crime. Novel micro-data on corporate loan officers and a measure of inattention
based on distracting events related to other borrowers in the loan officer’s portfolio to
make three contributions are exploited. Studies says that they need to exploit every loans
account to be fair to all the borrowers (Diaz & Vanhoose, 2017).
Lender direct credit evaluation and loan processing system
The central processing unit also includes facsimile transmission capabilities as
well as capabilities for communicating with credit bureau computers. Mass storage
capabilities are included for storing program modules executable on the central
processing unit and for maintaining databases. Program modules are provided for remote
access security, credit bureau information processing, credit scoring, message display,
and facsimile generation. In operation, the central processing unit is accessed from a
remote terminal, loan application information is entered into the remote terminal, credit
bureau information is accessed by the apparatus, credit scoring is performed, and a loan
application is approved or declined. The Central processing unit has its own important
purpose in a Loan monitoring. The storage of every data is placed in the Central
processing unit (Khafagy, 2018)
Automated loan evaluation system
In at least one aspect, the present invention comprises a system and method of
creating a probability of delinquency database using historical loan data and a plurality of
loan factors, for use in determining a loan rate, the method comprising: identifying a
plurality of multi-level loan factors; creating a pool from the historic loan data, wherein
16
the first pool contains records relating to the plurality of multi-level loan factors;
separating the pool into a set of groups based on the multi-level loan factors, calculating a
probability of delinquency for each group; and arranging the probability of delinquency
for each group into a database such that the probability of delinquency for each group is
accessible for any combination of multi-level loan factors. It helps to determine the loan
rate, identifies the plurality of a multi-level loan factors and etc. (Libman, 2017).
Automated loan risk assessment system and method
According to Hourigan (2018), an automated loan risk assessment system and
method are described. The system is adapted to receive information about a loan or an
insurance application requesting insurance to cover same. The system calculates a risk
score for the loan based on a plurality of risk factors including at least two of a fraud risk
factor, a credit risk factor and a property valuation risk factor. The risk score can be used
by a loan service provider in deciding whether or not to fund or insure the loan. The
system monitors the fraud risk factor and help the loan service provider to decide whether
or not to fund the loan.
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Chapter 3
Technical Background
This chapter focuses on the flow of the proposed system and the requirements to
be used to operate the proposed system.
Receipt
Sms Sending
Borrow Money and Send Payment
Member Loan Application
Loan Monitoring System of San

Member/Clients Gabriel RDWC
Approval Request
Reports
Admin/Clerk
Figure 1: Technicality of the Project

Figure 1 shows the process of the proposed system. The member will fill up loan
application and indicate the personal information and job information. After filling out
the form, the member submits it to the clerk to be saved on the database. After it is
verified, the member will be able to borrow money to the clerk using the system. The
member is obligated to pay their loans monthly. The penalties of borrowed money will
appear when the borrower does not pay on the exact date. Then the clerk will edit the
18
status of the borrowed money of the borrower. After the payment, it will issue the
official receipt as a proof of transaction of loans. The reports will generate monthly list of
loans, interest and members.
Technologies to be used
This section discusses the list of hardware and software that were used to develop
the proposed system.
Microsoft Visual Studio 2012. It is an integrated development environment
(IDE) from Microsoft. It is used to develop computer programs, as well as websites, web
apps, web, services and mobile apps. Visual Studio uses Microsoft software development
platforms such as Windows API, Windows Forms, Windows Presentation Foundation,
Windows Store and Microsoft Silverlight. It can produce both native code and managed
code. Visual Studio supports 36 different programing languages and allows the code
editor and debugger to support (to varying degrees) nearly any programming language,
provided a language-specific service exists. Built-in languages include C, C++, C++/CLI,
Visual Basic .NET, C#, F#, JavaScript, Type Script, XML, XSLT, HTML, and CSS.
Support for other languages such as Python, Ruby, Node.js, and M among others
is available via plug-ins. Java (and J#) were supported in the past.
SQL Server Management Studio (SSMS). It is a software application first
launched with Microsoft SQL Server 2005 that is used for configuring, managing, and
administering all components within Microsoft SQL Server. The tool includes both script
editors and graphical tools which work with objects and features of the server. SQL
Server Management Studio will be used by the proponents because it is one of the
databases that are compatible with the development of the system.
19
Table 1. Development Phase Software Requirements.
Operating System: Windows 10 (64-bit)

Processor: 2.40 GHz
RAM: 4 GB
Hard Disk: 500 GB
Microsoft Visual Studio 2012

Recommended Requirements:
x64 (64-bit)
Operating System: Windows 10 (64-bit)
Processor: 1.1 GHz
RAM: 4 GB
Hard Disk: 10 GB
Structured Query Language Database 2012 (SQL Database2012)
Recommended Requirements:
x64 (64-bit)
Processor: 1.1 GHz
RAM: 4 GB
Hard Disk: 10 GB
Table 2. Implementation Phase Software Requirements
Minimum Requirements: Recommended Requirements:

Operating Systems: Windows 8.1 Operating Systems: Windows 10
Microsoft Visual Studio 2012 Microsoft Visual Studio 2012
SQL Server Database 2012 SQL Server Database 2012
System Requirements: System Requirements:

x64 (64-bit) x64 (64-bit)
Processor: 1.1 GHz Processor: 3.50 GHz
RAM: 4 GB RAM: 8 GB
Hard Disk: 10 GB Hard Disk: 10 GB
Broadband stick (Globe Tattoo) Broadband stick (Smart Bro)
20
Table 3. Implementation Phase Hardware Requirements
Processor: Intel(R) Core(TM) i3-3110M CPU @2.40 GHz 2.40 GHz

RAM: 4 GB
Hard Disk: 500 GB
Minimum Requirements: Recommended Requirements:
x86 (32-bit) x64 (64-bit)
Processor: 1.1 gigahertz (GHz) Processor: 3.50 gigahertz (GHz)
Memory: 4 GB Memory: 8 GB
Hard Disk: 10 GB Hard Disk: 10 GB
How the project will work?
The proposed Loan Monitoring System will be fully accessed by the clerk of the
cooperative. He/she can operate the loan payment and can transact through borrower. The
borrower is required to give the information to the clerk to be saved on the system. The
clerk will have search function of the borrower to view the history of their loans. Each
borrower will receive a message before the deadline of payment as well as when the
borrower has paid his/her dues.
The project will enhance the process in terms of borrowing so the first thing is the
borrower’s information saved in the database. The payment and loan of the borrower will
be saved in the database, too. The database stores the data and it can easily search by
searching functions of the system. The transactions are accurate in terms of computing
the money. The payment is accurate in terms of computing the money on the system.
The loan transaction of the system will be posted on the list of posting. The posting will
be filtered by the date to show the loan details of the borrower. The search function of the
system is easily searched by the borrower to view the loan details and recognized the
21
amount of loan needed to be paid based on the payment terms. The reports will enhance
the view of receipts. It includes the transaction details of the borrower and it can be easily
printed. The system will send an SMS that notifies the member whenever he/she needs to
pay on the said due date. It will also send an SMS to notify the member if he/she is
already paid or not.
22
Chapter 4
Methodology of the Study
The purpose of this chapter is to explain in detail the research methods and the
methodology implemented for this study including research methods, system
development methodology, requirements analysis, requirement documentation, the design
of software, development and testing, implementation plan and implementation results.
Research Method
Descriptive-Quantitative method is gathering data from a variety of sources by
using different method such as interviews and observations. This method often involves
simply interviewing and observing to collect more data. Observation is a systematic data
collection approach. The interview in this method is a conversation where questions are
asked to get the information needed. Such study is especially useful for researchers
wanting to know who, what, and where of the events.
The proponents developed their proposed project based on ISO/IEC FURPS
Software Quality Characteristics. It was a model presented Robert Grady and Hewlett
Packard Co.
Figure 2 shows the FURPS Quality Model and its components which are the
Functionality, Usability, Reliability, Performance and System security.
Functionality. In this phase, the proponents evaluate their software quality
characteristics that includes the functionality of loan, payment and the sending of SMS to
the member. The SMS sent includes information regarding the payment and the due date.
23
Usability. This section covers the system’s usability. The proponents based the
project’s usability like if it can be really useful to the client for having the accuracy in
terms of computation.
Reliability. The proponents also made sure that the project can be reliable in
terms of computing data such as transaction records to eliminate the inconsistency of data
regarding the computation of the loan and payment.
Performance. The proponents also based the project’s performance on FURPS
that will help the client if they use the project. It will speed up their process in terms of
searching and computing data. They will not experience any lag or slow performance
regarding the system and the system loads faster in terms of speed and performance.
System Security. The proponents also based the project on FURPS’ Security to
be able to secure the records in terms of loan and payment. The encrypting password
access of the user to be able to login on the system.
Functionality
Usability System Security
FURPS
MODEL
Reliability Performance
Figure 2. FURPS Quality Model and its Components
24
Data Gathering Instruments
In able to gather data that will help the proponents in completing this project, the
following techniques has been done.
Observation. The proponents observed the members of Rural Waterworks and
Development Cooperative of San Gabriel on how they process the borrowing of money
and how they compute it accurately in the ledger. They monitor the records of the
members in the excel file which is often inaccurate and may contain wrong information
of the loan details of each member. This technique helped the proponents to gather ideas
on how to develop the proposed system.
Interview. The proponents also gathered information by conducting an interview
to the manager of the cooperative. Ms. Sheryl M. Cruz is the one who gave the details of
the problem of the company. She said that the employees are having a hard time doing
the manual loan process because the recording and computing of the payment of each
member are tedious. After conducting the interview, the proponents gained more ideas on
how to improve their process.
Internet Research. The proponents used this method to gather information and
references from the internet. Using Google, Google Scholar, and online journal to gather
related studies and literature, the proponents come up with knowledge, ideas and design
on how to develop the proposed system.
Library Research. Capstone documentation of former students who studied the
related and same project regarding the loan monitoring system had been used by the
proponents in purpose of gathering more information.
25
System Development Process
In this study, the researchers used the Agile Scrum Methodology to create the
proposed system. The methodology helped to improve, control and monitor the system
development process, functioning, and structuring the process. Advantages of using the
agile scrum model are as follows:
Figure 3. Agile Scrum Development Cycle
Product Backlog. It is a list that consists of features that should be implemented
during the development process.
In this phase, the proponents gathered and analyzed the system and unit
requirements needed to develop the system. It is also in this phase where the objectives
for making this type of system were identified and elaborated. It is where they devised
the system functions.
Design. This helped in specifying hardware and system requirements and helps in
defining the overall system architecture.
26
The developers gathered information from the general manager on what design
they want to see on the proposed system. After that the developers showed them the
prototype system. The developers used the staff suggested design with the use of Visual
Studio programming language C#.
Sprint planning meeting. The whole team are gathering and planning for the
releasing of the proposed system for the incoming sprints.
Working on the sprint (scrum meetings). The team sets the meeting for every
sprint, then they will present it to the stakeholders or clients and discuss the changes
during the development process.
Retrospective and next sprint planning. The Scrum team reflects all the
proceedings from the previous sprint they made and establishes all the improvements for
the next sprints.
Requirements Analysis
Requirements Analysis. It is also called requirements engineering, is the process
of determining user expectation on the newly improved system. These features are called
the requirements. It must be quantifiable, relevant and detailed. Based on the proponents
gathered data on the SGRWDC and internet, the proponents can make the proposed
system better than the existing one.
Operating Cost. Operation cost is expenses associated with the maintenance and
administration of a business on a day to day basis. The total cost of the existing system is
P412, 998.12 and the operating cost of the proposed system is P408, 847.00
27
Table 4. Operation Cost (Existing System)
Items Monthly Annually
A. Staff
(6) SGRWDC Staff
B. Supplies
(2) Ream of bond paper @ 150.00 300.00 3, 600.00
(1) Log Book @ 75.00 75.00 900.00
(2) Liquid Eraser @ 45.00 90.00 1, 080.00
(2) Stapler @ 100 200.00 200.00
(3) Staple Wire @ 32.00 96.00 1, 152.00
(2) Clips and Fasteners @ 35.00 70.00 840.00
(1) Ream of Folder @ 221.76 221.76 2, 661.12
(1) Box of Ballpen @ 96.00 96.00 1, 152.00
(1) Box of Pencil @ 25.00 25.00 300.00
(1) Printer Ink 999.00 11, 988.00
(1) ID Laminating Film 1, 250.00 1, 250.00
Total Supplies Cost 3, 422.76 25, 123.12
C. Equipment
(1) Paper Cutter @ 399.00 399.00
(2) Sharpener @ 10.00 20.00
(1) Calculator @ 280.00 280.00
(1) Dry Seal 3, 500.00
(1) ID Laminator Machine 4, 032.00
28
(2) Computer 30, 000.00
(1) Printer 7, 435.00
Total Equipment Cost 45, 666.00
Summary
A. Staff
B. Supplies 25, 123.12
C. Equipments 45, 666.00
Total Annual Cost (Existing System) 70, 789.12
Table 5.Operation Cost (Proposed System)

Items Monthly Annually
A. Personnel
(6) SGRWDC Staff
B. Supplies
(1) Ream of Bond Paper @150.00 150.00 1, 800.00
(1) Log Book @ 75.00 75.00 900.00
(1) Box of Ballpen @ 96.00 96.00 1, 152.00
(1) Printer Ink 999.00 11, 988.00
(1) ID Laminating Film 1,250.00 1, 250.00
Total Supplies Cost 2, 570.00 17, 090.00
C. Equipments
(1) Paper Cutter @ 399.00 399.00
(1) Dry Seal 3, 500.00
(1) ID Laminator Machine 4, 032.00

29
(1) Computer 15, 000.00
(1) Broadband Stick 999.00
(1) Printer 7, 435.00
Total Equipment Cost 31, 365.00
Summary
A. Staff
B. Supplies 17, 090.00
C. Equipments 31, 365.00
Total Annual Cost (Proposed System) 48, 455
Cost Benefit Analysis. It is a systematic approach to estimating the strengths and
weaknesses of alternatives used to determine options which provide the best approach to
achieving benefits while preserving savings.
Table 6. Cost and Benefit Analysis

Cost and Benefits Analysis
Existing System Cost 70, 789.12
Proposed System Cost 48, 455.00
Annual Cost Saving 22, 334.12
Development Cost. This article describes the role of cost benefit analysis in
determining the economic viability of developing a computerized information system.
The data above shows the development cost for the existing system which is P70, 789.12
30
and the proposed system which is P48, 455.00. It will provide an annual cost saving of
P22, 334.12. It will help lessen the expenses in SGRWDC.
Table 7.Development Cost
Item Amount
A. Hardware Cost
(1) Toshiba Laptop @ 35,000.00 35, 000.00
(1) Redmi Note 7 6GB RAM @ 12,990.00 12, 990.00
(1) Printer 7, 595.00
Total Hardware Cost 55, 585.00
B. Software Cost
(1) Microsoft Visual Studio 2012 20,200.00
(1) Windows 10 3,000.00
(1) Adobe Photoshop CC 1,453.85
Total Software Cost 24,653.00
C. Labor Cost
(1) Programmer @ 5,000 per month (6 months) 30,000.00
Total Labor Cost 30,000.00
D. Electric Consumption Cost
(1) Laptop 1,300.00
(1) Electric Fan 250.00
Total Electric Consumption Cost 1,550.00
E. Supplies Cost
(3) Ball pen 30.00
(2) Pencil 16.00
31
(1) Ream of Bond Paper 217.00
(1) Printer Ink 999.00
Total Supplies Cost 1, 262.00
F. Food and Transportation Cost 2,000.00
Summary
A. Hardware Cost 55, 585.00
B. Software Cost 24,653.00
C. Labor Cost 30,000.00
D. Electric Consumption Cost 1,550.00
E. Supplies Cost 1, 262.00
F. Food and Transportation Cost 2,000.00
Total Development Cost 115, 050.00
Operational Feasibility. It refers to the measure of solving problems with the
help of a new proposed system. It helps in taking advantage of the opportunities and
fulfills the requirements as identified during the development of the project.
Economic Feasibility. The proponents conducted economic feasibility studies to
determine the positive economic benefits the proposed system will provide to SGRWDC.
The result of the conducted economic feasibility studies for SGRWDC showed that they
have the capability to afford the proposed system because the Cooperative has budget for
the development cost of proposed system.
Fishbone Diagram. It is also called a cause and effect diagram or Ishikawa
diagram. It is a visualization tool for categorizing the potential causes of a problem in
order to identify its root causes.
32
Machine
People
Lack of knowledge Slow connection

about the system
Unable to finish proposed System

Time management
System Malfunction
System
Bad weather
Failure
No quality checking
Traffic
Inaccurate computation
Methods Environment
Figure 4. Fishbone Diagram
Schedule Feasibility. It is an assessment of the practicality of a proposed project
or system. Evaluates the project’s potential for success; therefore, perceived objectively
is an important factor in the credibility of the study for potential investors and lending
institutions.
Gantt Chart. A Gantt Chart, commonly used in project management, is one of
the most popular and useful ways of showing activities (tasks or events) displayed against
time. On the left of the chart is a list of the activities and along the top is a suitable time
scale. Each activity is represented by a bar; the position and length of the bar reflects the
start date, duration and end date of the activity.
33
JULY AUG SEPT OCT NOV DEC JAN FEB
ACTIVITIES REMARKS
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Strategy and Planning DONE
Data Gathering DONE
System and Analysis Design DONE
Chapter 1- Introduction
Introduction DONE
Project Context DONE
Purpose and Description of Project DONE
Objectives of the Project DONE
Scope and Limitation DONE
Significance of the Project DONE
Chapter 2- Review of Related
Literature and Studies
Theoretical Background DONE
Related Literature DONE
Related Studies DONE
Chapter3- Technical Background
Technicality of Project DONE
Details of the Technologies to be Used DONE
How will the Project Work? DONE
Chapter4- Methodology of Study
Research Methods and Techniques DONE
System Development Process DONE
Designing, Coding and Development DONE
Testing and Debugging DONE
Survey/System Evaluation DONE
Deployment/Implementation DONE
Chapter 5-Result and Recommendation
Summary DONE
Conclusion DONE
34
Recommendation DONE
Table 8. Gantt Chart of Activities (Documentation)
JULY AUG SEPT OCT NOV DEC JAN FEB

ACTIVITIES REMARKS
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4
Designing Forms of System DONE
File Maintenance
Member’s Record DONE
Transactions
Loan Process DONE
Payment Process DONE
SMS Notification DONE
Reports DONE
Table 9. Gantt Chart of Activities (Proposed System)
35
Requirements Documentation
This section presents the initial design of the system by discussing its major
components and their interaction.
Input Process Output (IPO) Model. It is the flow of how the proposed system
gathers data, process and produces an output that will give the company a better
transaction management. As shown in Figure 7, there are several system functionalities
that the user needs to provide in order to record the transaction done by the encoder.
After that, the system will process and verify the data. There are pages where the system
will compute the daily collection of the solicitor. Once the data is valid and the system is
done, then the user can view whether the information is updated or he/she can generate
reports through the use of reports page of the proposed system.

Input Process Output
Login Module
Verify the username and Loan Reports
-Username password if valid.
-Password
Transaction Module
-Payment Transaction Generate Loan and Payment Payment loan Reports

-Loan Transaction Schedules.
Report Module
-List of Loan Verify if the records of the Statement of Accounts

-List of Payment clients are recorded. of each member
-Statement of Account
Figure 7. Input Process Output (IPO) Model
36
Data and process modeling. System analysts use many graphical techniques to
describe an information system. A Data Flow Diagram (DFD) uses various symbols to
show how the system transforms input data into useful information.
Data flow diagram. It shows how data moves through an information system but
does not show program logic or processing steps. It provides a logical model that shows
what the system does, not how it does.
Figure 8. Data Flow Diagram or Level 0
37
38
39
System Flowchart
Admin and Staff Function
START
No
Enter Login and password
If Username
And
Password Match
Yes
Main Form
Member
Access Data Records
Add new
Member
End
Figure 11. Flowchart for Login and Records
40
Figure 12. Pending and Loan Application Case
41
Mode Payment
Term
Figure 13. Payment Case
42
Start
No
Penalty
Yes
Is the member
have a Penalty
Gather member Information of

Payment due date
End
Figure 14. Penalty Case
43
Start
Reports
Select
Navigation
Statement of Accounts
Payments
Loans
A gather data from A gather data from

A gather data from Payments Application
Loan Application
Member Records
End
Figure 15. Reports Case
44
Use Case Diagram. It is a representation of a user’s interaction with the system
that shows the relationship between the user and the different use cases in which the user
is involved.
ADMIN/CLERK
Figure 16: Use Case Diagram for Administration
45
Design of Software/System
This section discusses the design and implementation of the data structures and
algorithms used in the software. Part of the design tools in the technical manual may be
lifted as figures in this section.
Data Design. This data model contains all the needed logical and physical design
choices and physical storage parameters needed to generate a design in a data definition
language, which can then be used to create a database.
Entity Relationship Diagram. It is a data modeling technique that graphically
illustrates an information system’s entitles and the relationships between those entities.
Figure 17: Entity Relationship Diagram
46
Data Dictionary. It is a document describing a database or collection of
databases. It is also an integral component of database management systems that is
required to determine its structure.
Table 10. Tbl_User
Field Data Type Description

id int Unique identifier of user
account_number nvarchar(50) Account number of user
lastname nvarchar(50) Lastname of the user
firstname nvarchar(50) Firstname of user
LastName nvarchar(50) Lastname of user
middle_initial nvarchar(50) Middleinitial of user
address nvarchar(50) Address of user
contact_number nvarchar(50) Contact number of user
username nvarchar(50) Username of user
password nvarchar(50) Password of the user
role nvarchar(50) Userlevel of user
Table 11.Tbl_personal_info

id int Unique identifier of
member
account_number nvarchar(50) Account number of member
lastname nvarchar(50) Lastname of member
firstname nvarchar(50) Firstname of member
LastName nvarchar(50) Lastname of member
middle_initial nvarchar(50) Middleinitial of member
address nvarchar(50) Address of member
contact_number int Contact number of member
civil_status nvarchar(50) Civil Status of member
birthday nvarchar(50) Birthday of member
age nvarchar(50) Age of member
spouse nvarchar(50) Spouse of member
sposue_number nvarchar(50) Spouse number of member
status nvarchar(50) Approval Status
47
Table 12.Tbl_loan

member
name nvarchar(50) Fullname of member
loan_amount money Total loan amount
date_of_release nvarchar(50) Date release of loan
date_of_maturity nvarchar(50) Date Maturity of loan
payment_term nvarchar(50) Mode term of payment
payment_mode nvarchar(50) Payment mode
interest money Interest rate
net_proceeds money Payment Amount
Table 13.Tbl_remit

member
Due_date nvarchar(50) Due date of payment
amount_due_return money Payment due return
amount_due_interest money Interest rate
monthly_remit money Amount money remit
amount_due_balance money Balance amount
date_remit nvarchar(50) Date of remit
amount_remit money Amount remit
transaction_number nvarchar(50) Transaction number
48
Table 14.Tbl_requirements

member
image nvarchar(MAX) Image of member
Tin_number nvarchar(50) Tin number of member
cedula nvarchar(50) Cedula of member
seminar nvarchar(50) Seminar attended
share money Share capital
fee money Membership fee
Table 15.Tbl_lastpayment

member
due_date nvarchar(50) Due date of payment
last_amount_paid money Last amount paid
last_return money Last return
last_interest money Last interest
last_balance money Last balance
49
Table 16.Tbl_Amortization

member
date nvarchar(50) Due date of payment
principal money Return Amount
interest money Interest Rate of Payment
total money Total Amount Pay
balance money Balance Amount to Pay
Table 17. Tbl_share

member
acc_number nvarchar(50) Account number of member
share money Share Capital for member
date_share date Share Date Release
Table 18. Tbl_sms_send_messages

member
number int Contact number of member
message nvarchar(50) Messages for member
date_send date Date sms send
Table 19.Tbl_mode_of_payments

member
Mode_of_payments nvarchar(50) Mode of Payment Term
50
Table 20. Tbl_interest

member
interest nvarchar(50) Interest of loan
System Evaluation. The proponents conducted an evaluation to test the proposed
system if it will be useful to deploy in the company. The list of the table below shows the
result of the five indicators of the proposed system.
Table 21.Likert Scale
Rating Description
1.00 - 1.25 Poor
1.26 - 2.26 Fair
2.27 - 3.27 Good
3.28 - 4.28 Very Good
4.29 - 5.00 Excellent
Table 22. Weighted Mean and Description of the Respondents’ Response on the
System Functionality Test
Indicators Weighted Description

Mean
1. Is the member easy to search? 3.50 Very Good
2. Is the loan of the member easy to use? 4.30 Excellent

3. Does the payment of the loan computes 3.33 Very Good
accurately?
4. Are all the functions on payment and loan 3.55 Very Good
section working?
General Weighted Mean 3.67 Very Good
Table 22 exhibits the weighted mean and descriptive interpretation of the
respondents in term of system functionality. Four questions had been answered to
evaluate the functionality of the system. Based on the computation, the weighted means
51
of the system functionality were 3.50, 4.30, 3.33 and 3.55 respectively. The general
weighted mean of the system functionality was 3.67 and described as “Very Good”.
Table 23.Weighted Mean and Description of the Respondents' Response to the

System Usability Test

Mean
1. Is the system’s calculations accurate? 4.10 Very Good
2. Does the system have a clear text? 4.15 Very Good

3. Does the system have a minimal 3.35 Very Good
design?
4. Overall, does the system design 4.21 Very Good
satisfies the user?
Table 23 presents the weighted mean and descriptive interpretation of the
respondents’ response according to system usability. Four questions had been answered
to evaluate the usability of the system. Based on the computation, the weighted means
were 4.10, 4.15, 3.35, and 4.21 respectively. The general weighted mean of the system
usability was 3.95 and described as “Very Good”.
Table 24.Weighted Mean and Description of the Respondents' Response to the

System Reliability Test

Mean
1. Is the system user friendly? 3.40 Very Good
52
2. Does the system give an accurate 4.15 Very Good
data in terms of loan?
3. Does the system give an accurate 3.53 Very Good
data in terms of payment?
4. Overall, is the reliability of the 4.08 Very Good
system good?
Table 24 reveals the weighted and description of the respondents’ response in
terms of system reliability. Four questions had been answered to evaluate the reliability
of the system. Based on the computation, the weighted means were 3.40, 4.15, 3.53, and
4.08 respectively. The general weighted mean of the system reliability was 3.79 and
described as “Very Good”.
Table 25.Weighted Mean and Description of the Respondents’ Response on the

System Performance Test

Mean
1. Is the loading of data in the system 4.20 Very Good
fast?
2. Does the system run smooth? 3.69 Very Good
3. Is the system responsive? 4 Very Good
Table 25 exhibits the weighted mean and descriptive respondents’ response in
terms of system performance. Three questions had been answered to evaluate the
performance of the system. Based on the computation, the weighted means were 4.20,
3.69, and 4 respectively. The general weighted mean of the system performance was 3.96
and described as “Very Good”.
Table 26.Weighted Mean and Description of the Respondents’ Response on the

System Security Test
53
Mean
1. Does the system have a page strictly 4.20 Very Good
for the clerk only?
2. Is the password encrypted for 4.20 Very Good
security purposes?
3. Is the system secured in terms of 4.35 Very Good
loan and payment?
Table 26 presents the weighted mean and description of respondents’ response in
terms of system security. Three questions had been answered to evaluate the security of
the system. Based on the computation, the weighted means were 4.20, 4.20, and 4.35
respectively. The general weighted mean of the system security was 4.25 and described
as “Very Good”.
Table 27.Summary of the Weighted Mean and Description of the Program Evaluation
Test
Indicators Weighted Mean Description
1. System Functionality Test 3.67 Very Good

2. System Usability Test 3.95 Very Good
3. System Reliability Test 3.79 Very Good
4. System Performance Test 3.96 Very Good
5. System Security Test 4.25 Very Good
Table 27 illustrates the results of the Program Evaluation Test. It shows the
summary of the weighted means of the Five (5) Indicators. As gleaned in the table, the
weighted means of the respondents ranged from 3.67 to 4.25. The weighted mean of 4.25
is registered as the highest by the System Security Test, followed by 3.96 from System
Performance Test, 3.95 from System Usability Test, 3.79 from System Reliability Test
and the lowest which is 3.67 from System Functionality Test. Over all, the general
54
weighted mean of system evaluation is equal to 3.92 presented as “Very Good”. The
result of the evaluation shows that the system is functional.
Chapter 5
Summary, Conclusion and Recommendation
This chapter discusses the summary, conclusion, and recommendations of the
study based on the data presented in Chapter 4.
Summary
The proposed system was entitled “Loan Monitoring System”. The study aims to
develop and provide a Loan Monitoring System for San Gabriel Rural Waterworks and
Development Cooperative in order to monitor their customer’s loan and give a higher
quality of service.
The proposed system can help the management in terms because it will make the
employees job easier by using the system. By creating a Monitoring System, it will save
time in inserting, updating and viewing data and the user can easily view the member
he/she wants to see.
For the completion of the study, the proponents reviewed related literature and
studies to provide insights, valuable ideas and concepts that can support in the
development and completion of the project.
55
The technical feasibility was verified by proving information regarding the
hardware and software specifications, which include the minimum and maximum
recommendation.
Different methods were used to attain the objectives of the study. The proponents
made use of the descriptive research method. To gather necessary data, the proponents
made use of the data gathering techniques such as questionnaire, observation, interview,
internet research.
The Program Evaluation Test shows the summary of the weighted means of the
respondents which ranged from 3.67 to 4.25. The weighted mean of 4.25 is registered as
the highest by the System Security Test, followed by 3.96 from System Performance
Test, 3.95 from System Usability Test, 3.79 from System Reliability Test and the lowest
which is 3.67 from System Functionality Test. Over all, the general weighted mean of
system evaluation is equal to 3.92 presented as “Very Good”. The result of the evaluation
shows that the system is functional.
Conclusions
The problem regarding accuracy was a hindrance for processing the transaction of
the client. Data are simply written on a paper. Every transaction is vulnerable in terms of
losing data. Since paper can be lost, it can create problems. To be able to solve this
problem, the proponents provided a solution by having a computerized system that has
automatic computation in terms of records of transaction. This concludes that the solution
given to problem in terms of accuracy is great.
56
The problem with the security is that the files of the members are not totally
secured because it is only written on a paper and it can either be lost. It would be a big
disadvantage to the company. To solve this kind of problem, the proponents made a file
management system so all the data will be saved and stored there and it will also help
them track all their members. The proponents therefore conclude that all the records
should be stored on the database to avoid losing of data.
The problem on the speed is that doing paper works is such a monotonous work.
To help them solve their problem, the proponents provided a system to lessen the job of
the employees and to speed up the process of the loan in terms of the computation of the
data. The conclusion here is that the system decreases their work load in terms of paper
works and the transactions are all speed up because the system can compute
automatically.
Overall, the proponents were able to solve the problems of the company by means
of the proposed system. The provided objectives and goals to improve and enhance the
process of the loan and the payment were met.
Recommendation
Based on the survey, there are three features that they need to add up to improve
the system. Unfortunately, the proponents can no longer provide it because the scope of
the system might be broad. So, they can only recommend to future researchers to achieve
the next level for the proposed system.
Based on the survey, there are additional features like paying through credit card
to lessen their monthly transaction.
57
The profit sharing of the member should also be included by future researchers to
be able to view the distribution of the member. The calculations of the profit sharing are
done based on the dividend shares.
The proponents also recommend the online system with SMS notification. The
proponents recommend an enhancement of automatic sending including the payment
balance and the record of the transaction.
58
Bibliography
Abrahazhevich (2017). Monitoring Payment Systems. Retrieved from

https://ieeexplore.ieee.org/document/5332662
Chua & Tiongson (2016). Multiple Borrowing. Retrieved from
https://www.slideshare.net/simrc/multiple-borrowing
Diaz & Vanhoose (2017) Screening and Monitoring by Inattentive Corporate Loan
Officers. Retrieved from
https://ieeexplore.ieee.org/document/8268735/authors#authors
Hiroyuki (2015). Loan Monitoring and Bank Risk. Retrieved from
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2426149
Hourigan (2018). Automated loan risk assessment system and method. Retrieved from
Kenzo (2019).ISR. Retrieved from
https://www.informs.org/Publications/INFORMS-Journals/Information-Systems-
Research
Kingsley (2015). Financial transactions through manual system. Retrieved from
https://ieeexplore.ieee.org/document/5348451Kumaran (2017). Credit Monitoring
System. Retrieved from
https://kumaran.com/banking/credit-monitoring-system/
Lee (2015) Lending System. Retrieved from
Libman (2017). Automated loan evaluation system. Retrieved from
Mills (2018). Loan Management System. Retrieved from
https://www.hbs.edu/faculty/publication files/15-004_09b1bf8b-eb2a-4e63-9c4e-
0374f770856f.pdf
Miravite (2015). Loan monitoring system RRL. Retrieved from
https://newyorkessays.com/essay-loan-monitoring-system-rrl/
Nakamura & Mester (2017). Transaction Accounts and Loan Monitoring. Retrieved from
59
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=770804
Nakata (2015). Loan Monitoring and Bank Risk. Retrieved from
https://ideas.repec.org/p/eti/dpaper/15121.html
Oden (2017) Automated Loan Lending Management System. Retrieved from
https://www.projecttopics.org/automated-loan-lending-management-system.html
Priece & Mullineaux (2016). Monitoring, loan negotiability, and firm value: The role of
lending syndicates. Retrieved from
https://econpapers.repec.org/article/eeejbfina/v_3a20_3ay_3a1996_3ai_3a3_3ap_
3a577-593.html
Wade (2019). Lender direct credit evaluation and loan processing system. Retrieved from
http://www.freepatentsonline.com/6029149.html
60
Appendices
Appendix A
Survey Questionnaire
Evaluation Form for the Proposed System
Name : Date:
Course/ Department/ Unit:
Direction: Please put a check on the items that best corresponds to your choice.
1 2 3 4 5
I. System Functionality Test Poor Fair Good Very Excellent
Good
1 Is the member easy to search?
2 Is the loan of the member easy to use?
3 Does the payment of the loan computes
accurately?
4 Are all the functions on payment and loan
section working?
II. System Usability Test
1. Is the system’s calculations accurate?
2. Does the system have a clear text?
3. Does the system have a minimal design?
4. Overall, does the system design satisfies the
user?
III. System Reliability Test
1. Is the system user friendly?
2. Does the system give an accurate data in terms
of loan?
3. Does the system give an accurate data in terms
of payment?
Overall, is the reliability of the system good?
4.
IV. System Performance Test
61
1. Is the loading of data in the system fast?
2. Does the system run smooth?
3. Is the system responsive?
V. System Security Test
1. Does the system have a page strictly for the
clerk only?
2. Is the password encrypted for security
purposes?
3. Is the system secured in terms of loan and
payment?
Comments / Suggestions:
Thank you for taking your time in participating and answering this questionnaire.
Your opinions are very important and can help us to improve the quality of the
system.
______________________________
Signature over Printed Name
62
Appendix B
Screen Shots
63
64
65
66
67
Appendix C
User’s Manual
A. Login
4
1. Input username
2. Input password
3. Click to login
4. Click to exit
B. Member Form and Add Members 1
3 2
5
6
9 8
15 11 10
1
3
17 13 12
16
14
68
1. Click Member Tab.
2. Searching member information.
3. Auto-Generate Account number of new member.
4. Input Lastname
5. Input Firstname
6. Input Middlename
7. Input House no.
8. Choose your barangay
9. Fixed Municipality
10. Fixed Province
11. Input Contact no.
12. Choose your civil status
13. Select your Birthday
14. After selecting the birthdate, the age is automatically displayed.
15. Input your spouse. It depends on your civil status
16. Input contact number of your spouse
17. Then click next button
69
1
16
10 5
11
8
13 14
12 15
1. Browse the image of member
2. Input TIN number
3. Choose if the member has submitted a cedula
4. Choose if the member has attended the seminar
5. Fixed amount of membership fee
6. Input Loan amount
7. Input reason
8. Input the member company
9. Input Salary
10. Status if regular or contractual
11. Click back
12. Add new member
70
13. Save the new member
14. Click update to change the information of member
15. Click button to delete a member
16. Click any data on the list of member to display to the textbox
C. Adding share of member
2 1
1. Click share tab
2. Select data from the list of members
3. Automatic display of account number
4. Automatic display of the full name of a member
5. Input share amount
6. Save the amount share
71
D. Assigning payment schedule of member
2 1
9 10 11 12
1
1. Click Loan tab
2. Select and get the data to the list of member
3. Automatic display of the full name
4. Automatic display of the loaned amount of the member
5. Choose the mode of payment, its either monthly or yearly
6. Input term of payment
7. Choose interest of loan
8. Automatically computes the net proceeds
9. Clear all textbox
10. Save the payment schedule
11. Click update button to change the data of payment schedule
12. Click delete button to delete the data
72
E. Select payment schedule of the member based on their due-date of payment
1
2
11
9
10
1. Click the payment tab
2. Select and get data from the list of members including the payment schedule assigned
and automatically displays the computation of payment in the textboxes.
3. The penalty will be displayed if the member did not pay on the exact date.
4. The remit will display as amount of payment
5. Input the payment amount of member
6. Balance will be displayed if the member did not pay the exact amount
7. The balance of the last payment will be displayed.
8. The total balance of payment will be displayed.
9. The total amount of payment will be displayed.
10. Click the save for saving the transactions.
11. Click the new and select new payment schedules.
73
Appendix D
Relevant Source Code

Loan Form
using System;
using System.Collections.Generic;
using System.ComponentModel;
using System.Drawing;
using System.Data;
using System.Linq;
using System.Text;
using System.Threading.Tasks;
using System.Windows.Forms;
using System.Data.SqlClient;
using System.Configuration;
namespace RWDC_LMS
{
public partial class uc_loans : UserControl
{
public uc_loans()
{
InitializeComponent();
PopulateLoans();
PopulateBorrowers();
PopulateMode();
PopulateInterest();
btnUpdate.Enabled = false;
btnDelete.Enabled = false;
}
74
private void PopulateMode()
{
SqlConnection con = new SqlConnection
(ConfigurationManager.ConnectionStrings["connString"].ConnectionString);
SqlCommand cmd = new SqlCommand(@"SELECT * FROM
[RWDC_DB].[dbo].[tbl_mode_of_payments]", con);
SqlDataAdapter da = new SqlDataAdapter(cmd);
DataTable dt = new DataTable();
da.Fill(dt);
DataRow row = dt.NewRow();
row[0] = 0;
row[1] = "";
dt.Rows.InsertAt(row, 0);
cbMode.DataSource = dt;
cbMode.DisplayMember = "mode_of_payment";
}
private void PopulateInterest()

{
SqlConnection con = new
SqlConnection(ConfigurationManager.ConnectionStrings["connString"].ConnectionStrin
g);
SqlCommand cmd = new SqlCommand(@"SELECT * FROM
[RWDC_DB].[dbo].[tbl_interest]", con);
da.Fill(dt);
DataRow row = dt.NewRow();
row[0] = 0;
row[1] = "";
75
dt.Rows.InsertAt(row, 0);
txtInterest.DataSource = dt;
txtInterest.DisplayMember = "interest";
}
private void PopulateLoans()
{
#region Filter by Name
g);
SqlCommand cmd = new SqlCommand(@"SELECT account_number
,name
,CAST(loan_amount as DECIMAL(8,2)) as loan_amount
,date_of_release
,payment_mode
,payment_term
,CAST(interest as DECIMAL(8,2)) as interest
,date_of_maturity
,CAST(net_proceeds as DECIMAL(8,2)) as net_proceeds
FROM [RWDC_DB].[dbo].[tbl_loans] WHERE name LIKE '%" + txtSearch.Text + "%'
ORDER BY account_number DESC", con);
da.Fill(dt);
dgvLoans.DataSource = dt;
#endregion
}
private void btnBrowse_Click(object sender, EventArgs e)
{
PopulateBorrowers();
pSearchBorrowers.Visible = true;
76
pSearchBorrowers.BringToFront();
}
private void btnShowBorrowers_Click(object sender, EventArgs e)

{
pSearchBorrowers.Visible = false;
}
private void dgvBorrowers_CellDoubleClick(object sender,

DataGridViewCellEventArgs e)
{
if(dgvBorrowers.CurrentRow.Cells[10].Value.ToString() != "Pending")
{

g);
SqlCommand cmd = new SqlCommand(@"SELECT
ISNULL(SUM(CAST(monthly_remit as DECIMAL(8,2))),0.00) as 'TotalAmount'
FROM [RWDC_DB].[dbo].[tbl_remits] WHERE name
LIKE '%" + dgvBorrowers.CurrentRow.Cells[2].Value.ToString() + " " +
dgvBorrowers.CurrentRow.Cells[1].Value.ToString() + "%'", con);
da.Fill(dt);
double total_amount = Convert.ToDouble(dt.Rows[0]["TotalAmount"].ToString());

cmd = new SqlCommand(@"SELECT ISNULL(SUM(CAST(amount_remit as
DECIMAL(8,2))),0.00) as 'AmountPaid'
FROM [RWDC_DB].[dbo].[tbl_remits]
77
WHERE name LIKE '%" +
dgvBorrowers.CurrentRow.Cells[2].Value.ToString() + " " +
dgvBorrowers.CurrentRow.Cells[1].Value.ToString() + "%'", con);
da = new SqlDataAdapter(cmd);
dt = new DataTable();
da.Fill(dt);
double amount_paid = Convert.ToDouble(dt.Rows[0]["AmountPaid"].ToString());
if(amount_paid >= total_amount)

{
txtAccountNumber.Text = dgvBorrowers.CurrentRow.Cells[0].Value.ToString();
txtFullName.Text = dgvBorrowers.CurrentRow.Cells[2].Value.ToString() + " " +
dgvBorrowers.CurrentRow.Cells[1].Value.ToString();
txtAmount.Text = dgvBorrowers.CurrentRow.Cells[3].Value.ToString();
pSearchBorrowers.Visible = false;
}
else
{
MessageBox.Show("You have existing loan.", "Error", MessageBoxButtons.OK,
MessageBoxIcon.Error);
}
}
else
{
MessageBox.Show("Incomplete requirement.", "Error",
MessageBoxButtons.OK, MessageBoxIcon.Error);
}
}
private void ClearText()
78
{
txtAccountNumber.Text = "";
txtFullName.Text = "";
txtAmount.Text = "";
dpRelease.Text = System.DateTime.Now.ToString("yyyy-MM-dd");
cbMode.SelectedIndex = -1;
txtTerm.Text = "";
txtInterest.Text = "";
dpMaturity.Text = System.DateTime.Now.ToString("yyyy-MM-dd");
txtNetProceed.Text = "";
dgvAmortization.DataSource = null;
loan_granted.Text = "0.00";
share_capital.Text = "0.00";
service_charge.Text = "0.00";
insurance.Text = "0.00";
total_less.Text = "0.00";
grand_total.Text = "0.00";
}
private void btnNew_Click(object sender, EventArgs e)

{
ClearText();
btnSave.Enabled = true;
}
#region Parameters
decimal intr;
decimal sharePercent;
decimal servicePercent;
79
decimal insurancePercent;
string date = "";

double principal = 0;
double intrst = 0;
double total = 0;
double balance = 0;
string release = "";
string srch = "";
#endregion
private void ComputeAmortization()
{
g);
SqlCommand cmd = new SqlCommand("TRUNCATE TABLE
[RWDC_DB].[dbo].[tbl_amortization]", con);
con.Open();
cmd.ExecuteNonQuery();
con.Close();
for (int i = Convert.ToInt32(txtTerm.Text) + 1; i >= 1; i--)

{
cmd = new SqlCommand("SELECT TOP 1 * FROM [RWDC_DB].
[dbo].[tbl_amortization] ORDER BY id DESC", con);
da.Fill(dt);
if (dt.Rows.Count > 0)
{
80
balance = Convert.ToDouble(dt.Rows[0]["balance"].ToString());
total = Convert.ToDouble(dt.Rows[0]["total"].ToString());
intrst = Convert.ToDouble(dt.Rows[0]["interest"].ToString());
principal = Convert.ToDouble(dt.Rows[0]["principal"].ToString());
date = dt.Rows[0]["date"].ToString();
if (date == "")
{
if (srch != "")
{
DateTime currentDate = DateTime.Parse(release);
DateTime AddDate = currentDate.AddMonths(1);
date = AddDate.ToString("MM/dd/yyyy");
}
else
{
DateTime currentDate = DateTime.Parse(dpRelease.Text);
}
}
else
{
DateTime currentDate = DateTime.Parse(date);
}
double amount, pay, rate = 0;

double duration = 0;
81
rate = Convert.ToDouble(txtInterest.Text);
duration = Convert.ToInt32(txtTerm.Text);
amount = Convert.ToDouble(txtAmount.Text);
if (rate > 1)
{
rate = rate / 100;
}
pay = (amount * Math.Pow((rate / 12) + 1, (duration)) * rate / 12) /
(Math.Pow(rate / 12 + 1, (duration)) - 1);
total = pay;
intrst = balance * (Convert.ToDouble(txtInterest.Text) / 100) / 12;
principal = total - intrst;
balance = balance - principal;
}
else
{
balance = Convert.ToDouble(txtAmount.Text);
date = "";
principal = 0;
intrst = 0;
total = 0;
}
cmd = new SqlCommand("INSERT INTO [RWDC_DB].[dbo].[tbl_amortization] (date,

principal, interest, total, balance) VALUES (@date, @principal, @interest, @total,
@balance)", con);
cmd.Parameters.AddWithValue("@date", date);
cmd.Parameters.AddWithValue("@principal", principal);
cmd.Parameters.AddWithValue("@interest", intrst);
cmd.Parameters.AddWithValue("@total", total);
82
cmd.Parameters.AddWithValue("@balance", balance);
con.Open();
con.Close();
}
cmd = new SqlCommand(@"SELECT

id
,[date] as Date
,SUM(CAST(CASE WHEN principal = 0 THEN 0 ELSE CAST(principal as
DECIMAL(8,2)) END as DECIMAL(8,2))) as Principal
,SUM(CAST(CASE WHEN interest = 0 THEN 0 ELSE CAST(interest as
DECIMAL(8,2)) END as DECIMAL(8,2))) as Interest
,SUM(CAST(CASE WHEN total = 0 THEN 0 ELSE CAST(total as
DECIMAL(8,2))END as DECIMAL(8,2))) as Total
,CAST(balance as DECIMAL(8,2)) as Balance
FROM [RWDC_DB].[dbo].[tbl_amortization]
GROUP BY id, [date], balance
UNION ALL
SELECT
'' as id, 'Total :' as Date
,SUM(CAST(CASE WHEN principal = 0 THEN 0 ELSE CAST(principal as
DECIMAL(8,2)) END as DECIMAL(8,2))) as Principal
DECIMAL(8,2)) END as DECIMAL(8,2))) as Total,0 as Balance
FROM [RWDC_DB].[dbo].[tbl_amortization]", con);
SqlDataAdapter da2 = new SqlDataAdapter(cmd);
DataTable dt2 = new DataTable();
da2.Fill(dt2);
83
dgvAmortization.DataSource = dt2;
this.dgvAmortization.Columns["id"].Visible = false;
intr = Convert.ToDecimal(txtInterest.Text) / 100;

sharePercent = 2; // 2%
servicePercent = 2; // 2%
insurancePercent = 1; // 1%
decimal shareCapital = sharePercent / 100;

decimal serviceCharge = servicePercent / 100;
decimal ins = insurancePercent / 100;
// Loan Granted
loan_granted.Text = txtAmount.Text;
share_capital.Text=Convert.ToDecimal(Convert.ToString(Convert.ToDecimal(loan_gran
ted.Text) * shareCapital)).ToString("#.##") + ".00";
service_charge.Text=Convert.ToDecimal(Convert.ToString(Convert.ToDecimal(loan_gr
anted.Text) * serviceCharge)).ToString("#.##") + ".00";
insurance.Text=Convert.ToDecimal(Convert.ToString(Convert.ToDecimal(loan_granted.
Text) * ins)).ToString("#.##") + ".00";
// Total Less
total_less.Text=Convert.ToDecimal(Convert.ToString(Convert.ToDecimal(share_capital.
Text)+Convert.ToDecimal(service_charge.Text)
+Convert.ToDecimal(insurance.Text))).ToString("#.##") + ".00";
// Grand Total
grand_total.Text = Convert.ToString(Convert.ToDecimal(loan_granted.Text) -
Convert.ToDecimal(total_less.Text)).ToString();
84
txtNetProceed.Text = grand_total.Text;
if (srch != "")
{
DateTime maturityDate = DateTime.Parse(release);
DateTimeAddMaturityDate=maturityDate.AddMonths(Convert.ToInt3
2(txtTerm.Text));
dpMaturity.Text = AddMaturityDate.ToString("MM/dd/yyyy");
}
else
{
DateTime maturityDate = DateTime.Parse(dpRelease.Text);
DateTime AddMaturityDate =
maturityDate.AddMonths(Convert.ToInt32(txtTerm.Text));
}
}
private void btnSave_Click(object sender, EventArgs e)
{
SqlConnectioncon=newSqlConnection(ConfigurationManager.ConnectionStri
ngs["connString"].ConnectionString);
SqlCommand cmd = new SqlCommand("TRUNCATE TABLE [RWDC_DB].
[dbo].[tbl_amortization]", con);
con.Open();
con.Close();
for (int i = Convert.ToInt32(txtTerm.Text) + 1; i >= 1; i--)

{
cmd = new SqlCommand("SELECT TOP 1 * FROM [RWDC_DB].[dbo].
[tbl_amortization] ORDER BY id DESC", con);
85
da.Fill(dt);
{
balance = Convert.ToDouble(dt.Rows[0]["balance"].ToString());
total = Convert.ToDouble(dt.Rows[0]["total"].ToString());
intrst = Convert.ToDouble(dt.Rows[0]["interest"].ToString());
principal = Convert.ToDouble(dt.Rows[0]["principal"].ToString());
date = dt.Rows[0]["date"].ToString();
if (date == "")
{
if (srch != "")
{
DateTime currentDate = DateTime.Parse(release);
}
else
{
DateTime currentDate = DateTime.Parse(dpRelease.Text);
}
}
else
{
DateTime currentDate = DateTime.Parse(date);
86
}
double amount, pay, rate = 0;

double duration = 0;
rate = Convert.ToDouble(txtInterest.Text);
duration = Convert.ToInt32(txtTerm.Text);
amount = Convert.ToDouble(txtAmount.Text);
if (rate > 1)
{
rate = rate / 100;
}
pay = (amount * Math.Pow((rate / 12) + 1, (duration)) * rate / 12) /
(Math.Pow(rate / 12 + 1, (duration)) - 1);
string PMT = pay.ToString("#.##");
total = pay;
intrst = balance * (Convert.ToDouble(txtInterest.Text) / 100) / 12;
principal = total - intrst;
balance = balance - principal;
}
else
{
balance = Convert.ToDouble(txtAmount.Text);
date = "";
principal = 0;
intrst = 0;
total = 0;
}
87
cmd = new SqlCommand("INSERT INTO [RWDC_DB].[dbo].[tbl_amortization] (date,
principal, interest, total, balance) VALUES (@date, @principal, @interest, @total,
@balance)", con);
cmd.Parameters.AddWithValue("@date", date);
cmd.Parameters.AddWithValue("@principal", principal);
cmd.Parameters.AddWithValue("@interest", intrst);
cmd.Parameters.AddWithValue("@total", total);
cmd.Parameters.AddWithValue("@balance", balance);
con.Open();
con.Close();
if (date != "")
{
cmd = new SqlCommand("INSERT INTO [RWDC_DB].[dbo].[tbl_remits]
(account_number, name, due_date, amount_due_return, amount_due_interest,
monthly_remit) VALUES (@account_number, @name, @due_date,
@amount_due_return, @amount_due_interest, @monthly_remit)", con);
cmd.Parameters.AddWithValue("@account_number",
txtAccountNumber.Text);
cmd.Parameters.AddWithValue("@name", txtFullName.Text);
cmd.Parameters.AddWithValue("@due_date", date);
cmd.Parameters.AddWithValue("@amount_due_return", principal);
cmd.Parameters.AddWithValue("@amount_due_interest", intrst);
cmd.Parameters.AddWithValue("@monthly_remit", total);
con.Open();
con.Close();
}
}
88
cmd = new SqlCommand(@"SELECT
id
,[date] as Date
,SUM(CAST(CASE WHEN principal = 0 THEN 0 ELSE CAST(principal
as DECIMAL(8,2)) END as DECIMAL(8,2))) as Principal
DECIMAL(8,2))END as DECIMAL(8,2))) as Total
,CAST(balance as DECIMAL(8,2)) as Balance
FROM [RWDC_DB].[dbo].[tbl_amortization]
GROUP BY id, [date], balance
UNION ALL
SELECT
'' as id, 'Total :' as Date
,SUM(CAST(CASE WHEN principal = 0 THEN 0 ELSE CAST(principal
as DECIMAL(8,2)) END as DECIMAL(8,2))) as Principal
DECIMAL(8,2)) END as DECIMAL(8,2))) as Total ,0 as Balance
FROM [RWDC_DB].[dbo].[tbl_amortization]", con);
SqlDataAdapter da2 = new SqlDataAdapter(cmd);
DataTable dt2 = new DataTable();
da2.Fill(dt2);
dgvAmortization.DataSource = dt2;
this.dgvAmortization.Columns["id"].Visible = false;
intr = Convert.ToDecimal(txtInterest.Text) / 100;

sharePercent = 2; // 2%
89
servicePercent = 2; // 2%
insurancePercent = 1; // 1%
decimal shareCapital = sharePercent / 100;

decimal serviceCharge = servicePercent / 100;
decimal ins = insurancePercent / 100;
// Loan Granted
loan_granted.Text = txtAmount.Text;
share_capital.Text=Convert.ToDecimal(Convert.ToString(Convert.ToDecimal(loan_gra
nted.Text) * shareCapital)).ToString("#.##") + ".00";
service_charge.Text=Convert.ToDecimal(Convert.ToString(Convert.ToDecimal(loan_gr
anted.Text) * serviceCharge)).ToString("#.##") + ".00";
insurance.Text=Convert.ToDecimal(Convert.ToString(Convert.ToDecimal(loan_granted.
Text) * ins)).ToString("#.##") + ".00";
// Total Less
total_less.Text=Convert.ToDecimal(Convert.ToString(Convert.ToDecimal(share_capital.
Text)+Convert.ToDecimal(service_charge.Text)
+Convert.ToDecimal(insurance.Text))).ToString("#.##") + ".00";
// Grand Total
grand_total.Text=Convert.ToString(Convert.ToDecimal(loan_granted.Text)-
Convert.ToDecimal(total_less.Text)).ToString();
txtNetProceed.Text = grand_total.Text;
if (srch != "")
{
DateTime maturityDate = DateTime.Parse(release);
90
DateTimeAddMaturityDate=maturityDate.AddMonths(Convert.ToInt32(txtTe
rm.Text));
}
else
{
DateTime maturityDate = DateTime.Parse(dpRelease.Text);
DateTimeAddMaturityDate=maturityDate.AddMonths(Convert.ToInt3
2(txtTerm.Text));
}
if (txtAccountNumber.Text != "" && txtFullName.Text != "" &&

cbMode.Text != "" && txtTerm.Text != "" && txtInterest.Text != "")
{
cmd=newSqlCommand(@"INSERTINTO[RWDC_DB].[dbo].
[tbl_loans] (account_number, name, loan_amount, date_of_release,
date_of_maturity, payment_term, payment_mode, interest, net_proceeds)
VALUES (@account_number, @name, @loan_amount,
@date_of_release, @date_of_maturity, @payment_term, @payment_mode, @interest,
@net_proceeds)", con);
cmd.Parameters.AddWithValue("@loan_amount", txtAmount.Text);
cmd.Parameters.AddWithValue("@date_of_release", dpRelease.Text);
cmd.Parameters.AddWithValue("@date_of_maturity",
dpMaturity.Text);
cmd.Parameters.AddWithValue("@payment_term", txtTerm.Text);
cmd.Parameters.AddWithValue("@payment_mode", cbMode.Text);
cmd.Parameters.AddWithValue("@interest", txtInterest.Text);
91
cmd.Parameters.AddWithValue("@net_proceeds",
txtNetProceed.Text);
con.Open();
con.Close();
ClearText();
PopulateLoans();
MessageBox.Show("Data successfully saved.", "Message Box",
MessageBoxButtons.OK, MessageBoxIcon.Information);
}
else
{
MessageBox.Show("All * are required.", "Error", MessageBoxButtons.OK,
MessageBoxIcon.Error);
}
}
private void btnUpdate_Click(object sender, EventArgs e)
{
SqlConnectioncon=newSqlConnection(ConfigurationManager.Con
nectionStrings["connString"].ConnectionString);
SqlCommandcmd=newSqlCommand(@"UPDATE[RWDC_DB].
[dbo].[tbl_loans] SET
name = @name
,loan_amount = @loan_amount
,date_of_release = @date_of_release
,date_of_maturity = @date_of_maturity
,payment_term = @payment_term
,payment_mode = @payment_mode
,interest = @interest
92
,net_proceeds = @net_proceeds WHERE
account_number = @account_number", con);
cmd.Parameters.AddWithValue("@account_number", txtAccountNumber.Text);
cmd.Parameters.AddWithValue("@loan_amount", txtAmount.Text);
cmd.Parameters.AddWithValue("@date_of_release", dpRelease.Text);
cmd.Parameters.AddWithValue("@date_of_maturity", dpMaturity.Text);
cmd.Parameters.AddWithValue("@payment_term", txtTerm.Text);
cmd.Parameters.AddWithValue("@payment_mode", cbMode.Text);
cmd.Parameters.AddWithValue("@interest", txtInterest.Text);
cmd.Parameters.AddWithValue("@net_proceeds", txtNetProceed.Text);
con.Open();
con.Close();
ClearText();
PopulateLoans();
MessageBox.Show("Successfully updated.", "Message Box",
}
private void btnDelete_Click(object sender, EventArgs e)

{
if (MessageBox.Show("You want to delete this record?", "Question",
MessageBoxButtons.YesNo, MessageBoxIcon.Question) == DialogResult.Yes)
{
//Delete record from table loans information
93
SqlConnectioncon=newSqlConnection(ConfigurationManager.Connecti
onStrings["connString"].ConnectionString);
SqlCommand cmd = new SqlCommand(@"DELETE FROM
[RWDC_DB].[dbo].[tbl_loans] WHERE account_number = @account_number", con);
con.Open();
con.Close();
ClearText();
PopulateLoans();
MessageBox.Show("Data successfully deleted.", "Success",
}
}
Payment Form
using System;
using System.Collections.Generic;
using System.ComponentModel;
using System.Drawing;
using System.Data;
using System.Linq;
94
using System.Text;
using System.Windows.Forms;
using System.Data.SqlClient;
using System.Configuration;
using System.Globalization;
using System.Diagnostics;
using System.Threading;
using System.IO.Ports;
namespace RWDC_LMS
{
public partial class uc_remits : UserControl
{
int id = 0;
public uc_remits()
{
InitializeComponent();
ClearText();
PopulateCollections();
}
private void PopulateCollections()
{
SqlConnectioncon=newSqlConnection(ConfigurationManager.Connection
Strings["connString"].ConnectionString);
SqlCommand cmd = new SqlCommand(@"SELECT [date_remit] as 'Date Remit'
,[name] as 'Name'
,CAST([amount_due_return] as DECIMAL(8,2)) as 'Return'
95
,CAST([amount_due_interest]as DECIMAL(8,2)) as 'Interest'
,CAST(CAST([amount_due_return] as DECIMAL(8,2)) +
CAST([amount_due_interest] as DECIMAL(8,2)) + CAST([amount_due_balance] as
DECIMAL(8,2)) as DECIMAL(8,2)) as 'Amount Due'
,CAST([amount_remit] as DECIMAL(8,2)) as 'Paid Amount'
,[transaction_number] as 'Transaction #'
WHERE date_remit IS NOT NULL AND name LIKE '%" +
txtSearch.Text + "%' ORDER BY id ASC", con);
da.Fill(dt);
dgvPayments.DataSource = dt;
dgvPayments.Refresh();
}
private void PopulateRemit()
{
SqlCommand cmd = new SqlCommand(@"SELECT * FROM [RWDC_DB].
[dbo].[tbl_remits] WHERE account_number LIKE '%" + txtAccountNumber.Text +
"%'", con);
da.Fill(dt);
txtDueDate.Text = dt.Rows[0]["due_date"].ToString();
txtAccountNumber.Text = dt.Rows[0]["account_number"].ToString();
txtFullname.Text = dt.Rows[0]["name"].ToString();
96
txtMonhlyRemit.Text=Convert.ToDecimal(dt.Rows[0]
["monthly_remit"]).ToString("#.##");
txtAmountDueReturn.Text=Convert.ToDecimal(dt.Rows[0]
["amount_due_return"]).ToString("#.##");
txtAmountDueInterest.Text=Convert.ToDecimal(dt.Rows[0]
["amount_due_interest"]).ToString("#.##");
dpDateRemit.Text = dt.Rows[0]["date_remit"].ToString();
}
private void PopulateLastPayment()
{
SqlCommand cmd = new SqlCommand(@"SELECT TOP 1 * FROM
[RWDC_DB].[dbo].[tbl_last_payment]
WHERE account_number LIKE '%" + txtAccountNumber.Text + "%' ORDER
BY id DESC", con);
da.Fill(dt);
{
txtLastAmountPaid.Text=Convert.ToDecimal(dt.Rows[0]
["last_amount_paid"]).ToString("#.##");
txtLastReturn.Text = Convert.ToDecimal(dt.Rows[0]["last_return"]).ToString("#.##");
txtLastInterest.Text = Convert.ToDecimal(dt.Rows[0]["last_interest"]).ToString("#.##");
txtLastBalance.Text = Convert.ToDecimal(dt.Rows[0]["last_balance"]).ToString("#.##");
DateTime dTCurrent = DateTime.Now;
DateTime inputDate = DateTime.ParseExact(txtDueDate.Text,
"MM/dd/yyyy", CultureInfo.InvariantCulture);
97
int result = DateTime.Compare(dTCurrent, inputDate);
if (result > 0)
{
double penalties = 0.03;
txtAmountDueTotal.Text=((Convert.ToDouble(txtAmountDueRetur
n.Text)+ Convert.ToDouble(txtAmountDueInterest.Text))+(Convert.ToDouble(remit)*
penalties)).ToString("#.##");
}
else
{
txtAmountDueBalance.Text = txtLastBalance.Text;
txtAmountDueTotal.Text=Convert.ToDecimal(Convert.ToDecimal(t
xtAmountDueReturn.Text) +
Convert.ToDecimal(txtAmountDueInterest.Text)).ToString("#.##");
}
}
else
{
DateTime dTCurrent = DateTime.Now;
DateTime inputDate = DateTime.ParseExact(txtDueDate.Text,
"MM/dd/yyyy", CultureInfo.InvariantCulture);
int result = DateTime.Compare(dTCurrent, inputDate);
if (result > 0)
{
double penalties = 0.03;
98
txtAmountDueTotal.Text=((Convert.ToDouble(txtAmountDueReturn
.Text)+ Convert.ToDouble(txtAmountDueInterest.Text))+
(Convert.ToDouble(remit)*penalties)).ToString("#.##");
}
else
{
txtAmountDueBalance.Text = txtLastBalance.Text;
txtAmountDueTotal.Text=Convert.ToDecimal(Convert.ToDecimal(t
xtAmountDueReturn.Text) +
Convert.ToDecimal(txtAmountDueInterest.Text)).ToString("#.##");
}
}
}
private void PopulateLoans()
{
SqlCommand cmd = new SqlCommand(@"SELECT id, due_date as 'Due Date',
account_number as 'Account #', name as 'Name', CAST(amount_due_return as
DECIMAL(8,2)) as 'Return', CAST(amount_due_interest as DECIMAL(8,2)) as
'Interest', CAST(monthly_remit as DECIMAL(8,2)) as 'Total Amount',
ISNULL(CAST(amount_remit as DECIMAL(8,2)),0.00) as 'Amount Paid'
WHERE name LIKE '%" + txtSearchLoan.Text + "%'", con);
da.Fill(dt);
dgvLoans.DataSource = dt;
{
99
this.dgvLoans.Columns["id"].Visible = false;
}
}
Appendix E
Grammarians Certificate
G R A M M A R I A N’ S C E R T I F I C A T E
July 31, 2020
To Whom It May Concern:
This is to certify that the undersigned has reviewed and went through all the pages
of the proposed project study / research entitled “Loan Monitoring System of San
Gabriel Rural Waterworks and Development Cooperative with SMS Notification”
as aligned with set of structural rules that govern the composition of words, phrases, and
sentences in the English Language.
This certificate is issued upon the request of the proponents. Given this 31st day
of July 2019 at Immaculate Conception I-College Sta. Maria, Bulacan.
100
Signed:
Prof. Blossom B. Gasper LPT, RN

Grammarian
Appendix F
Researcher’s Profile
Gilbert Norris L. Frejoles

Pulong Buhangin, Santa Maria Bulacan
Angel_off_frejoles@yahoo.com
+63923-418-9489
Educational Background
Tertiary
Immaculate Concepcion I-college of Art and Technology
Poblacion, Santa Maria Bulacan
July 2020
Secondary
Pulong Buhangin National High School
Pulong Buhangin Santa Maria Bulacan
March 2010
Primary
Cornelia M. De Jesus Memorial School
Pulong Buhangin Santa Maria Bulacan
March 2006
Personal Information
101
Nickname: Bert
Age: 25
Birthdate: September 13, 1993
Gender: Male
Civil Status: Single
Nationality: Filipino
Height: 5’6” ft.
Weight: 114 lbs.
Religion Roman Catholic
Gilbert Norris L. Frejoles

Applicant
GUGULAN, VINCE JOSEPH M.

Address: Blk 6 Lot 36 Verde Heights Subdivision III,
Brgy. Gaya-Gaya, City of San Jose del Monte, Bulacan
Mobile No.: 0965-340-0054
Email Address: vince.gugulan@gmail.com
EDUCATIONAL BACKGROUND:
TERTIARY Immaculate Concepcion I – College of Arts and Technology
Poblacion, Sta. Maria, Bulacan
Ladderized to Bachelor of Science in Information System (4 years)
Date of Completion: June 2017 – Present
Immaculate Concepcion I – College of Arts and Technology

Poblacion, Sta. Maria, Bulacan
Computer Technology (2 years)
Date of Completion: June 2012 – April 2014
SECONDARY Bulacan Standard Academy

Poblacion, San Jose del Monte, Bulacan
Date of Completion: June 2008 – March 2012
PRIMARY San Jose del Monte Elementary Central School

Poblacion, San Jose del Monte, Bulacan
Date of Completion: June 2002 – March 2008
102
PERSONAL INFORMATION:
Birth Date: April 18, 1996 Birth Place: Caloocan City, Philippines
Height: 5’10 Weight: 70 kgs.
Citizenship: Filipino Interest: Computer games, Basketball
Vince Joseph M. Gugulan

Signature of Applicant
103
Reynald Bendillo Mangmang
Mahabang Parang, Santa Maria Bulacan
ReynaldMangmang0195@gmail.com
0916-822-4700
Educational Background
College
Immaculate Concepcion I-college of Art and Technology
Poblacion, Santa Maria Bulacan
July 2020
High School
Sacred Heart Academy
Dr T Santiago St, Santa Maria, 3022 Bulacan
March 2014
Elementary
Mahabang Parang elementary school
Mahabang Parang Sta.Maria Bulacan
March 2008
Personal Information
Nickname : Nald
Age : 24
Birthdate : Octorber 1, 1995
Gender: Male
Civil Status : Single
Nationality : Filipino
Height : 5’5” ft.
Weight : 154 lbs.
Religion : Catholic
Reynald B. Mangmang
Applicant
104

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Loan Monitoring System of San Gabriel Rural Waterworks and Development

Cooperative with SMS Notification

A Capstone Presented to the Faculty of the College of

In Partial Fulfillment of the Requirements for the Degree of

Frejoles, Gilbert Norris L.

In partial fulfillment of the requirements for the degree of Bachelor of Science in

July 2020 Mr. Ferdinand R. Arca, Jr.

Approved in partial fulfillment for the degree of Bachelor of Science in

Mr. Michael C. Puno Mr. David Roldan O. Ponce

July 2020 Ms. Raquel T. De Jesus

cannot do anything in the world.

To Ms. Raquel De Jesus, the CSIT Dean of Immaculate Conception I-College of

being a good adviser to us.

make the system better.

for believing in us. We love you!

problems. To all of you, thank you for your undying support.

the evaluation shows that the system is functional.

Purpose and Description..................................................................................................4

Objectives of the Project..................................................................................................5

Scope and Delimitation....................................................................................................5

Significance of the Study.................................................................................................6

Review Related Literature...................................................................................................8

How the project will work?...........................................................................................21

Methodology of the Study.................................................................................................23

Data Gathering Instruments...........................................................................................25

System Development Process........................................................................................26

Cost Benefit Analysis................................................................................................30

Input Process Output (IPO) Model............................................................................36

Data and process modeling........................................................................................37

Use Case Diagram.....................................................................................................45

Summary, Conclusion and Recommendation....................................................................55

Table 1. Development Phase Software Requirements.......................................................20

Table 2. Implementation Phase Software Requirements...................................................20

Table 3. Implementation Phase Hardware Requirements..................................................21

Table 4. Operation Cost (Existing System).......................................................................28

Table 5.Operation Cost (Proposed System).......................................................................29

Table 6. Cost and Benefit Analysis...................................................................................30

Table 7.Development Cost................................................................................................31

Table 8. Gantt Chart of Activities (Documentation).........................................................34

Table 9. Gantt Chart of Activities (Proposed System)......................................................35

Table 10. Tbl_User............................................................................................................47

Table 17. Tbl_share...........................................................................................................50

Table 18. Tbl_sms_send_messages...................................................................................50

Table 20. Tbl_interest........................................................................................................50

Table 21.Likert Scale.........................................................................................................51

Figure 1: Technicality of the Project.................................................................................18

Figure 2. FURPS Quality Model and its Components......................................................24

Figure 3. Agile Scrum Development Cycle.......................................................................26

Figure 4. Fishbone Diagram..............................................................................................33

Figure 7. Input Process Output (IPO) Model.....................................................................36

Figure 8. Data Flow Diagram or Level 0..........................................................................37

Figure 9. Data Flow Diagram or Level 1..........................................................................38

Figure 10. Data Flow Diagram or Level 2........................................................................39

Figure 11. Flowchart for Login and Records.....................................................................40

Figure 12. Pending and Loan Application Case................................................................41

Figure 13. Payment Case...................................................................................................42

Figure 14. Penalty Case.....................................................................................................43

Figure 15. Reports Case.....................................................................................................44

Figure 16: Use Case Diagram for Administration.............................................................45

Figure 17: Entity Relationship Diagram...........................................................................46

Relevant Source Code........................................................................................................73

to options such as initiation of loans from anywhere through the internet.