Group 1 Web Based Loan Management and Mobile QR Payment Collection System 2 1

Web-based Loan Management with Mobile QR Payment Collection System for
Three Fe's Appliance Emporium
A Capstone Project Proposal

Presented to the Faculty of the
Information and Communications Technology Program
STI College Koronadal
In Partial Fulfilment
of the Requirements for the Degree
Bachelor of Science in Information Technology
Mhing Jhang T. Ang

John Paul N. Alair
Kenneth Louis S. Deocampo
Jay Mhari V. Maglinao
May 6, 2023
APPROVAL SHEET
This capstone project proposal titled: Web-based Daily Loan Management with QR
Payment Collection System for Three Fe’s Appliance Emporium prepared and
submitted by Mhing Jhang T. Ang, John Paul N. Alair, Kenneth Louis S. Deocampo,
and Jay Mhari V. Maglinao, in partial fulfillment of the requirements for the degree of
Bachelor of Science in Information Technology, has been examined and is recommended
for acceptance and approval.
Engr. Leila B. Guerrero, Ph.D

Capstone Project Adviser
Accepted and approved by the Capstone Project Review Panel

in partial fulfillment of the requirements for the degree of
Bachelor of Science in Information Technology
Jufren B. Cervantes, MIT Mark C. Tres Reyes, MIT

Panel Member Panel Member
Engr. Jessie M. Gayosa, MIT, MPA

Lead Panelist
Noted:
Engr. Leila B. Guerrero, Ph.D Engr. Leila B. Guerrero, Ph.D

Capstone Project Coordinator Program Head
May 6, 2023

TABLE OF CONTENTS
Page
Title Page i
Executive Summary ii
Approval Sheet iii
Acknowledgment iv
Table of Contents v
List of Figures vi
List of Tables vii
List of Notations viii
Introduction
Project Context 1
Purpose and Description of the Project 7
Objectives of the Study 9
Scope and Limitations of the Study 19
Review of Related Literature/Systems 49
Review of Related Literature 49
Related Studies and/or Systems 66
Synthesis 72
Technical Background 78
Overview of Current Technologies to be Used in the System 78
Calendar of Activities 87
Resources 109
Appendix
References 117
Resource Persons
Personal Technical Vitae (one page per member) 101

List of Figures
Figure No. Pages

Figure 1. HESFB Disbursement Form 67
Figure 2. QR Code Generation Screen 69
Figure 3. Loan Calculator for Loan Management System 70
Figure 4. Customer’s Dashboard 72
Figure 5. Peopleware 84
Figure 6. Network Design 86
Figure 7. Illustration of Agile Methodology 88

List of Tables
Table No. Pages

Table 1. Hardware Requirements for Running the Web Application 81
Table 2. Hardware Requirements for Running the Mobile 82
Application
Table 3. Hardware Requirements for Running Wireless Portable 82
Receipt Printer
Table 4. Software Requirements for Running the Web Application 83
Table 5. Software Requirements for Running the Mobile Application 83
Table 6. Software Requirements for Running the Wireless Portable 83
Receipt Printer
Table 7. Hardware Requirements for Developing and Testing the 88
Web Application of Web-based Daily Loan Management
and QR Payment Collection System
Mobile Application of Web-based Daily Loan Management
Wireless Portable Receipt Printer of Daily Web-based Daily
Loan Management and QR Payment Collection System
Table 10. Software Requirements for Developing and Testing the 111
Web Application of Web-based Daily Loan Management
Mobile Application of Web-based Daily Loan Management
Wireless Portable Receipt Printer of Web-based Daily Loan
Management and QR Payment Collection System

INTRODUCTION
Project Context
The world is witnessing an era of tremendous technical improvement, with web

applications development and mobile computing systems at the forefront of this
digital revolution. As people increasingly rely on digital services in their daily
lives, the significance of building software that harnesses these technologies to
fulfill customers' changing needs has become necessary. In today's fast-paced
world, efficient financial services are crucial, and the loan sector is no different.
Yet, many lending businesses use traditional loan management and payment
collecting techniques that can be tedious, time-consuming, and prone to errors.
The development of Web-based Daily Loan management systems and mobile
payment collection systems has grown in importance in solving these obstacles.
According to Carranto (2021), the benefits of implementing a loan management

system are numerous and can significantly improve the efficiency of financial
institutions in several ways. Automation improves speed to completion by
eliminating tedious and repetitive manual steps in the loan application and
decision process. This efficiency enables organizations to scale and grow as the
capacity to process a higher volume of loans increases. A comprehensive loan
management system also offers better tracking and transparency, allowing for a
thorough overview of all loans in various stages and providing instant access to
vital financial reports. Furthermore, the streamlined approach of using a single
system for managing all aspects of loan processing results in more efficient
handling of multiple loan applications, ultimately leading to better overall
outcomes for the organization and its customers. The benefits of these systems are
enormous. By adopting these solutions, lending institutions can increase
efficiency, decrease operational expenses, and improve customer experience.
In today's digital era, creating a web-based daily loan management system for
lending institutions is not only pertinent but essential. By expediting loan
STI College Koronadal 1

management processes and delivering seamless payment collection methods,
these technologies can considerably boost lending organizations' efficiency and
customer experience, marking a significant step towards accessible and efficient
financial services for the masses.
As the financial services industry evolves, lending institutions increasingly use

technology to enhance operations and improve customer experiences. Three Fe's
Appliance Emporium is a lending institution that provides quick financial
assistance to individuals needing loans. The company commenced operations in
2021 with only three borrowers but has grown considerably in the last two years.
Three Fe's Appliance Emporium currently serves 120 borrowers who benefit from
the company's primary offering of daily loan payment collections. This service
benefits borrowers who prefer to settle their loans in small, manageable amounts.
By providing this service, three Fe's Appliance Emporium helps borrowers meet
their financial obligations without incurring undue strain.
During the first year of its operations, Three Fe's Appliance Emporium had an
effective loan management system. Borrowing money was quite simple: a
prospective borrower would approach a collector and express their interest in
obtaining a loan. Often, this would happen because of a referral from a previous
borrower. The Collector would then provide the Borrower with an application
form requiring them to furnish personal information such as their name, address,
phone number, and the desired loan amount.
Upon completing the application, the Collector would submit it to the company's
auditor for review. If the Borrower is applying for a loan for the first time, the
loan amount should not exceed 5,000 pesos, and the applications should undergo
a credit investigation (CI). The auditor would add the Borrower's application to
the schedule of applicants for credit investigation, starting with the first
application and proceeding to the last.
The Collector thoroughly assesses the Borrower's financial status as part of the
credit investigation process. This assessment includes an examination of the

Borrower's source of income and daily profits. The source of revenue is preferred
to be a legitimate business with necessary documents. However, profitable
businesses without these may still be eligible for loans if they have a physical
establishment.
The borrower's profits must exceed their daily payments to ensure they can repay
the loan. Typically, the assessment of the borrower takes five days if the area is
remote but only one to two days if the area is nearby before the loan is either
approved or denied. The loan application is approved if the credit investigation
demonstrates that the borrower has the financial capacity to repay the loan.
However, if the investigation reveals that the borrower cannot repay the loan, the
application is denied.
Once a loan application is approved, the auditor enters the Borrower's personal
and loan information into an Excel file to record the details. Then, the auditor
prepares a promissory note outlining the loan amount, repayment terms, and the
Borrower's commitment to repay the loan with a 10% monthly interest rate within
60 days, equivalent to 20% for the entire duration of the loan. This document is a
legally binding agreement between the Borrower and the lender. In addition, the
auditor creates a paper ledger for the Borrower to assist the Collector in keeping
track of all repayment transactions. This ledger provides a clear and accurate
record of all payments made by the Borrower, serving as a valuable tool for
ensuring that the Borrower stays on top of their repayment schedule.
Once the lender provides the approved loan amount, the Collector takes the
promissory note, paper ledger, and cash to the Borrower's location. There, the
Collector presents the promissory note to the Borrower for signature and requests
one photocopy of a valid ID before disbursing the funds.
Following the transaction, the Collector submits the signed promissory note and
one photocopy of the Government's valid ID to the auditor, who then files it in the
physical file manager for safekeeping. This process ensures that all loan-related
documents are appropriately documented and stored for future reference.

A day After the loan disbursement, the daily collection of repayments
commences. The Collector visits the Borrower's location to retrieve the amount
owed and subsequently records the payment in the Borrower's paper ledger,
which serves as their record of payments. Moreover, the Collector also records the
payment on their Daily Collection Report (DCR).
At the end of each day's collection process, the Collector manually calculates the
total amount collected and submits it to the lender. The Collector also submits the
Daily Collection Reports to the company's auditor, who manually records each
payment transaction in an Excel file to update all borrowers' information. This
Excel file includes information about the Borrower's payments, the outstanding
balance, and any late or missed payments.
There is no penalty if the Borrower fails to repay on the scheduled day. However,
if the Borrower fails to pay the loan on the maturity date, the lender sends an
overdue notice, requiring the Borrower to pay the entire loan amount within three
days. If the Borrower cannot pay the loan after this period, they receive a
Reconstruction Notice, granting them a grace period of seven days. The lender
reconstructs the loan if the Borrower fails to pay the outstanding balance within
that week, and the outstanding balance incurs an additional 10% monthly interest
rate for 60 days. The total interest for the 60 days will be 20% of the loan amount.
If the Borrower cannot pay the outstanding balance, the lender reconstructs the
loan monthly.
However, if the Borrower fails to pay the loan amount for a whole year, especially
if the loan amount is 10,000 pesos or more, the lender may issue a Legal Notice
and take legal action to rectify the agreement. It is important to note that death is
the only acceptable reason for default.
At the end of each month, the auditor generates the company's monthly collection
and borrower status report. Using the information in the Excel file, the auditor
calculates the collection amount. The auditor uses the formula in the Excel file to
create this monthly report, which the lender receives in printed form to track the

company's financial status. The Collection and Borrower Status Report overviews
the borrowers' repayment status and includes information about missed or late
payments. These reports are critical for the lender to monitor the company's
financial health and make informed decisions.
Three Fe's Appliance Emporium faces significant challenges in efficiently

managing its loan process. One of the primary issues that the company is
encountering is its reliance on physical loan application forms, which are often
misplaced or lost during the filing process due to the high volume of pending loan
applications.
The loan approval process typically takes up to five days, and this usual scenario
could cause the loan applications to accumulate in the office. On average, the
company receives three to five new loan applications daily, resulting in a backlog
of applications waiting to be processed. After approving the first loan, the office
may have 10-15 pending loan applications that require an auditor’s attention.
With only one auditor handling the applications, some applications have been
misplaced or lost during the filing process.
Misplaced and lost loan applications result in many borrowers not receiving the
credit investigation they expected, leading to frustration and questioning the
company's reliability. In addition, due to frequent handling, some loan
applications become dilapidated, making them unusable. This problem causes
frustration for both borrowers and staff, who need to spend extra time and effort
tracking down these dilapidated loan applications. This problem is prevalent in
cases where borrowers request a credit investigation, which is essential in
determining a borrower's financial capability to repay the loan.
Unfortunately, the paper-based system's problems do not end there. The

company's auditor manually files all these loan applications, which leads to
interchanges among loan applications, and because of this, proper queueing of
application papers is no longer followed. Consequently, the credit investigation of
the last Borrower to submit their application is prioritized, leaving other

borrowers who have been waiting for an extended period feeling frustrated. This
problem affects the borrowers' experience and reflects poorly on the company's
reputation, potentially resulting in a loss of business.
More problems emerged from the auditor's mistakes in encoding borrower

information in the Excel file. The issue arose because the auditor often found it
challenging to read the Borrower's handwriting in the loan application, recording
incorrect information in the promissory note and paper ledger. As a result,
borrowers sometimes received a loan amount that differed from what they had
applied for, causing confusion and frustration. The applicants had brought this
problem to the attention of the company's management multiple times, but the
management had not yet implemented a concrete solution.
As if the previous problems weren't enough, Three Fe's Appliance Emporium also
faced an issue with incorrect payment records caused by the auditor's input errors
in the Excel file. The errors resulted in inaccurate loan records for borrowers,
including incorrect balances, numbers of missed payments, and the number of
payments made. The situation worsened when borrowers lost their paper ledger
and requested a new one. Unfortunately, the auditor transferred the incorrect data
encoded in the Excel file to the new paper ledger. And when borrowers received
their new ledger, they discovered that the company had not recorded some of their
payments on specific dates, causing further frustration and dissatisfaction with the
company.
Continuing the discussion on problems Three Fe's Appliance Emporium faced,

the issue was related to the Collector's incorrect payment record writing. The
Collector had to rewrite the payment record to the daily report, which sometimes
led to incorrect inputs. The wrong inputs caused a discrepancy in the daily report
and the actual payment made by the Borrower, leading to confusion and
dissatisfaction among the borrowers. The incorrect payment records also made it
difficult for the company to track loan payments, leading to errors in the
accounting process. The incorrect data encoding caused financial losses and

damaged the company's relationship with borrowers who may have lost trust in its
ability to manage their payments.
The proponents desire to find a better way to improve the present condition by
proposing a system entitled "Web-based Daily Loan Management System with
Mobile QR Payment Collection System for Three Fe's Appliance Emporium" that
will help address the unsatisfactory management and collection process of Three
Fer's Appliance Emporium.
Purpose and Description of the Project
The project aims to assist Three Fe's Appliance Emporium manage their loan
cycle and payment collection process by developing a Web-based Daily Loan
Management System with a Mobile QR Payment Collection System. Once the
project is complete, the system will streamline and reduce the loan application
process errors and accurately automate the Borrower, loan, and payment
information recording. It will also simplify the payment collection process,
requiring less time to complete, and automatically generate reports.
The Web-based Loan Management with Mobile QR Payment Collection System

has the following functions:
1. Enable borrowers to fill out the loan application in a mobile application

that includes registering their personal and financial information and
requesting loan terms and amounts.
2. Store and manage borrower information securely, including personal

details, identification documents, and credit history.
3. Manage loan information of every Borrower, such as their loan amount,

interest rate, payment terms, and application status.
4. Generate a promissory note based on the Borrower's loan application to

establish a legally binding agreement outlining the loan terms, loan

amount, and consequences for default.
5. Track loan repayments made by borrowers, including the amount paid,

date of payment, and remaining balance, to monitor repayment
performance.
6. Manage collectors responsible for collecting loan repayments from

borrowers by assigning them to specific areas.
7. Record repayments of the Borrower using QR technology, which allows

the Collector to automate the collection process of repayment.
8. Authenticate applicants' income sources, ensuring financial capacity to

repay loans and promoting responsible lending practices.
9. Generate various reports such as Loan Application Reports, Collection

Reports, Outstanding Reports, Loan Portfolio Reports, Delinquency
Reports, Payment History Reports, and Amortization Schedule Reports.
The reports provide insights into different aspects of the loan management
process.
Upon approval of the proposed project, it will give the following significance
particular to the following:
1. Three Fe's Appliance Emporium can benefit from the proposed project
by reducing its operational costs, which currently stem from a reliance on
manual processes. By implementing the Web-based Daily Loan
Management System with a Mobile QR Payment Collection System, the
company can streamline tasks and eliminate the need for hiring additional
staff. This improvement will increase income through reduced operational
costs and enhanced overall efficiency, resulting in greater profitability. As
the primary source of financing for the project, the lending institution
stands to gain a significant return on investment while potentially boosting
its reputation and business opportunities within the community.

2. The Customers of Three Fe's Appliance Emporium will benefit from
the proposed project by having a faster and more convenient loan
application process, more accessible payment collection through a mobile
QR payment collection system, and accurate payment history records. The
system will also make it easier for customers to access their financial
records, track their payments, and make informed financial decisions.
3. The Collectors of Three Fe's Appliance Emporium will benefit from

the proposed project by providing a more efficient and accurate payment
collection process. By implementing the mobile QR payment collection
system, collectors can easily and quickly collect payments from borrowers
without manual record-keeping. This streamlined process reduces the
workload for collectors and minimizes the risk of errors that could
potentially result in a deduction of pay. Ultimately, this feature improves
the accuracy and efficiency of the payment collection process, allowing
collectors to work more effectively and efficiently while benefiting the
lending company by improving its overall profitability.
4. The Secretary of Three Fe's Appliance Emporium will benefit from the
proposed project by enabling the secretary to manage loan applications
and borrower information more accurately and securely. It will also reduce
the risk of errors in encoding borrower information and allow for easy
retrieval of borrowers' records, loan applications, loan information, and
payment histories. Also, automatic report generation will make it easier
for the secretary to monitor the company's financial performance and
identify areas for improvement. Overall, the system's features will
empower the secretary to perform their duties more efficiently, resulting in
better customer service.

Objectives of the Study
General Objectives
The main objective of this study is to develop a Web-based Loan Management

with Mobile QR Payment Collection System for Three Fe's Appliance Emporium.
Specific Objectives
This research proposal aims to achieve the following specific objectives:
1. To develop a web application to create the following Back-end modules for

the Administrators.
a. Login module – allows users to access their accounts using their

unique identifier (Username, Email Address, or Contact Number) and
a secure password that meets specific criteria. Suppose users enter
incorrect information or forget their password. In that case, they can
initiate the password recovery process, which involves receiving an
OTP (One-Time Password) via their registered email address or
contact number. The developer provides the first Super User account;
additional user accounts can be created and managed within the
system.
b. Dashboard – provides a concise overview of loan data with key

insights and visualizations. Users can track metrics such as borrower
numbers, disbursed principal, collections, and loan statuses. Charts and
graphs showcase trends, while customization options enable daily,
weekly, and monthly data analysis.
c. Loan Management Module – manages loan transactions by overseeing

and automating various aspects of the lending process, from loan
application to repayment.
The module will have the following sub-modules:

a. Loan application module – allows walk-in applicants to apply
for loans by entering personal, business, and loan information.
Users must upload the required documents and choose a loan
amount subject to approval. The system calculates the amount
due, daily repayment, and disbursement.
The module will generate the following reports:
i. Loan Application Summary Report – provides an

overview of individual loan applications, including
personal, business, and loan information and
uploaded documents. Users can print the report for
review.
b. Loan approval module – manages loan applications,

streamlining the evaluation process. Users can view pending
and approved loan applications, with the approval process
based on multiple evaluations and approvals such as
Application and Income Evaluation, Payment History
Evaluation (for existing borrowers), Credit Investigator
Approval, and Disbursement Approval. Approved applications
are added to a list, and users can print an auto-generated
promissory note.
c. Loan Disbursement module – users to approve loan

disbursements, displaying a list of pending loan applications.
Users can view application details and enter a disbursement
amount. The module also monitors lending capital balance and
allows funds to be added.
d. Collection module – lets users document remitted amounts by

Collectors, displaying a list of collectors and their actual
recorded remittance. Users can add the amount received, and

the system will identify any discrepancies, notifying collectors
if needed.
e. Borrower Information Module – manages and displays

borrower details, automatically adding approved loan
applicants' information. Users can view and sort lists of active,
fully paid, legally pursued, and defaulted borrowers and search
for specific borrowers using various filters. Clicking "View"
for a borrower provides access to the comprehensive Borrower
Information Report. The module also includes a print function
for obtaining physical copies of loan records.
This module includes the following report:
i. Borrower Information Report – displays personal

and business information of borrowers, along with
their submitted documents. Users can print the
report for reference or record-keeping.
f. Loan Information Module – allows users to view and manage

loan information, automatically updating with approved loan
applications. It displays various loan lists, such as open, new,
fully paid, restructured, and defaulted, with filters and sorting
options. Clicking "View" provides a comprehensive Loan
Information Report for a specific borrower. The module
handles past-due notices, automatic loan restructuring,
borrower disqualification, and legal notices based on specific
non-payment timeframes. Users can also print loan records for
physical copies.
This module includes the following reports:
i. Loan Information Report – shows borrower and loan

details, including personal information, disbursement

method, principal amount, loan release and approval
dates, interest method, loan interest, loan duration,
repayment cycle, number of repayments, and loan
status. Users can switch to other reports or print the
Loan Information Report for reference or record-
keeping.
ii. Payment History Report – displays the payment history

for individual loans, summarizing total principal return,
interest return, total repayment, and the number of
repayments. It includes a list of repayments with details
such as payment date, method, amount, and assigned
collector. Users can search, sort, and filter repayment
data for easy organization and updates.
iii. Amortization Schedule Report – presents an

amortization table for loans, detailing payment date,
amount, principal and interest return, total interest, and
remaining balance over time.
g. Repayment Module – manages borrower repayments, showing

all repayments made on the current date. Users can add
repayments for walk-in customers, search for specific
borrowers, and filter based on the mode of payment or
collector.
d. Collector Management Module – manages collector information,

allows assignment of collectors to areas, and displays collector
performance. Users can search, sort, and filter collectors.
e. User Management Module – allows users to view and manage

accounts, displaying a list of active users with their roles and details.
Users can search, sort, and filter the list based on role, while Super

Users can create and delete accounts as needed. Account creation
involves inputting personal information and a unique username and
password. Upon successful account creation, users receive their
account details via SMS. All users can update their profile
information, including changing their password or profile picture. The
module assigns access levels based on user roles, ensuring appropriate
permissions for each user within the organization.
f. Reports Management Module – generates various reports to help

administrators understand company performance and identify
improvement areas.
i. Loan Application Report – displays loan application

statuses and applicant details and allows switching
between daily, weekly, monthly, and yearly reports.
Users can search, sort, filter, and print the report.
ii. Outstanding Balance Report – provides an overview of
unpaid loan balances and borrower details and allows
switching between time frames. Users can search, sort,
filter, and print the report.
iii. Loan Portfolio Report - Offers a comprehensive view of
the loan portfolio, displays charts, and allows switching
between daily, weekly, and monthly reports. Users can
print the report.
iv. Delinquency Report – presents an overview of past-due
loans and delinquent account details and allows
v. Disbursement Report – provides loan disbursement
summaries and disbursed loan details and allows

vi. Collectors Report – displays collectors' collection
information and collector details and allows switching
between time frames. Users can search, sort, filter, and
print the report.
vii. Gross Income Report – provides users with key metrics
like Gross Income, Revenue, Interest Income, and
Service Fee Income. It calculates Revenue by adding
Interest Income and Service Fee Income, while Gross
Income is derived by subtracting Loan Losses and
provisions for Loan Losses. Users can filter data based
on date ranges and visualize the Gross Income trend
through a line chart. A "Print" button generates a
printable report for convenient reference and record-
keeping.
2. To develop a mobile application to create the following Front-end modules for

the Collector.
a. Login module – enables users to access their accounts using their

a password that meets specific criteria. If incorrect information is
entered or a password is forgotten, the module initiates a password
recovery process involving an OTP sent to the user's registered
contact. Users can also click the "Forgot Password" link to start the
recovery process if needed. The module ensures secure account access
and user authentication.
b. Dashboard module – provides a quick summary of collection data,

collector's details, and performance tracking. Displays collector's
name, ID, picture, and collection rates.

c. Collection Module – enables efficient recording of daily repayments,
displays lists of paid/unpaid borrowers, and allows collectors to scan
borrower QR codes or search by name. Provides a record page with
transaction details, generates receipts, and sends notifications.
d. Notification Module – receives timely notifications, alerts, and

updates, keeping collectors informed about new borrowers, payment
due date reminders, collection discrepancies, and company policy
updates.
e. User Management Module – users update their profile information,

including Profile Picture, Name, Email, Number, Username, and
Password. Users must follow specific criteria for passwords and ensure
unique usernames. After making changes and clicking "Update," the
system automatically updates the user's information. If required fields
are missing, the update process won't proceed, and an error message
will be displayed.

the Credit Investigator.
a. Login module – enables users to access their accounts using their

b. Dashboard module – provides a quick summary of loan applications,

investigator's details, and performance tracking. Displays the
investigator's name, ID, picture, and application status.

c. Loan Application Review Module – allows users to view and verify
loan applications through a checklist covering personal information,
submitted documents, and business information. Approve and Reject
buttons streamline decision-making, helping minimize default risk and
promote responsible lending.
d. Notification Module – receives timely notifications, alerts, and

updates, keeping credit investigators informed about new loan
applications and company policy updates to effectively manage
investigation activities.
e. User Management Module – users update their profile information,

will be displayed.

the Borrower.
a. Registration module – allows users to input personal information,

including Name, Email, Number, Username, and Password, with
specific password criteria and unique usernames. Users can also
upload a profile picture. All fields, except Middle Name, Email, and
Profile Picture, are required. The registration process cannot be
completed if the required information is missing.
b. Login module – enables users to access their accounts using their


c. Dashboard Module – provides users with a comprehensive overview

of their loan details, borrower ID, and upcoming payment reminders,
ensuring they stay aware of their financial obligations.
d. Loan Application Module – enables users to apply for loans by

submitting personal, business, and loan information and uploading
necessary documents. Users can select their desired loan amount, and
the system calculates the total amount due, daily repayment, and total
disbursement. After reviewing their application, users can submit it for
further processing and approval.
e. Repayment History Module – show the borrower's repayment history,

including details on missed payments, the outstanding balance, and
individual repayment transactions. It displays the payment date,
amount, interest, remaining balance, status, and the collector assigned
to each repayment.
f. Notification Module - receives timely notifications regarding loan

application status, upcoming payment due dates, received payment
confirmations, alerts for missed or late payments, and general
announcements or policy updates from the lending company, enabling
borrowers to manage their loan repayments effectively.
g. User Management Module – users update their profile information,


will be displayed.
5. To evaluate the web and mobile applications based on the following

requirements: functional, operational, performance, security, and cultural
and political requirements.
Scope and Limitations of the Study
The study involves developing the Web-based Daily Loan Management System
with a Mobile QR Payment Collection System. The researcher will gather the
necessary data and information to develop the lessons. In developing the Loan
Management System, the proponent will seek the assistance of a programmer.
This study is conducted in the second semester of the School Year 2023-2024.
The scope of this project is limited to several processes:
1. Web Application
a. Login Module - allows users to enter their account information, such

as Username, Email Address, Contact Number, and Password, to
access their accounts. Users can use their Username, Email Address,
or Contact Number for this purpose. Passwords must meet the required
criteria: 8-12 characters long, containing a mix of at least one
uppercase and one lowercase letter, one number, and one special
character. Additionally, each username must be unique and not
identical to any other user's username. Users input their unique
identifier (Username, Email Address, or Contact Number) and
password into the designated text fields to log in. If the entered
information is correct, the module grants access to the user's account.
In case of missing or incorrect information, the module denies access.
If a user enters the wrong password thrice, the system automatically
initiates password recovery. The user will be prompted to check their

registered email address or contact number for the OTP (One-Time
Password), which will be sent automatically. The user must input the
received OTP into the designated text field for verification. Once the
OTP is verified, the user will be guided through creating a new
password. They must enter their new password and re-enter it for
confirmation. Alternatively, if users forget their password from the
beginning, they can click the "Forgot Password" link to follow the
same password recovery process as previously described. Please note
that the developer will provide the first Super User account, and
subsequent user accounts can be created and managed within the
system.
b. Dashboard- This module provides an overview of loan data, offering

key insights and visualizations for various loan-related metrics. Users
can easily track the number of borrowers, total principal disbursed,
total collections, accounts receivables, open loans, fully paid loans,
restructured loans, and defaulted loans. Informative charts and graphs
display trends in loan disbursement, collections, accounts receivables,
and number of borrowers. The dashboard is highly customizable,
allowing users to switch between daily, weekly, and monthly views to
analyze data in their preferred time frame.
c. Loan Management Module – manages loan transactions by overseeing

and automating various aspects of the lending process, from loan
application to repayment.
The module will have the following sub-module:
i. Loan Application Module – This module enables walk-in

applicants to apply for loans at the office. Users can input the
applicant's Personal, Business, and Loan Information before
using the system. Specifically, users need to provide the
following Personal Information: First Name, Middle Name,

Last Name, Gender, Date of Birth, Mobile Number, Email,
Address, City or Municipality, and Province. Next, users must
enter the Business Information, including Business Name,
Average Daily Income, Type of Business, Business Address,
City or Municipality where the business is established, and
Province. After completing this information, users must upload
the following documents: a Photo of the Borrower, a
Government-issued Valid ID, a Picture of the Establishment,
and a Business Permit (Optional). Once these documents are
uploaded, users can choose their desired loan amount. For new
borrowers, the maximum loan amount is 5,000 pesos, while
existing borrowers can request up to 50,000 pesos. Users can
either input the loan amount directly or use a slider to adjust
the amount. Note that the requested amount is still subject to
approval and may change depending on the lender's decision.
The system will automatically calculate the Total Amount Due,
Daily Repayment, and Total Disbursement based on the
entered loan amount. The Total Amount Due is computed by
adding the Loan Amount to the 20% interest (10% monthly
interest for two months). The Daily Repayment is calculated by
dividing the Total Amount Due by 60 days. Lastly, the Total
Disbursement is determined by subtracting a 1.1% Service Fee
from the loan amount. Once the application is complete, users
can review the Loan Application Summary Report and print it
if necessary. After reviewing the application, users must click
the "Submit" button to send the loan application for review and
approval. The module will automatically forward the submitted
application to the Loan Approval Module for further
processing.

i. Loan Application Summary Report - provides a
concise and comprehensive overview of individual
loan applications, enabling users to thoroughly
evaluate the application before submitting it for
approval. This report includes Personal Information
such as First Name, Middle Name, Last Name,
Gender, Date of Birth, Mobile Number, Email,
Address, City or Municipality, and Province;
Business Information covering Business Name,
Average Daily Income, Type of Business, Business
Address, City or Municipality where the business is
established, and Province; and Loan Information
featuring Loan Amount, Interest, Total Amount
Due, Loan Duration, Daily Repayment, Service Fee,
and Total Disbursement. Additionally, the report
displays images of the following documents:
Borrower Picture, Government Valid ID, Picture of
Establishment, and Business Permit (Optional).
Users can print the Loan Application Summary
Report for records or further review.
ii. Loan approval module – manages loan applications submitted

through a mobile application, streamlining the evaluation
process. Users can view the list of pending and approved loan
applications. For pending applications, users can see the loan
approval status of the borrower, which is based on the
following evaluations and approvals: Application and Income
Evaluation, Payment History Evaluation (for existing
borrowers), Credit Investigator Approval, and Disbursement
Approval. For Application Evaluation, the loan application
must contain complete required personal information, such as
First Name, Last Name, Gender, Date of Birth, Mobile

Number, Email, Address, City or Municipality, Province,
Picture of Borrower, and Government Valid ID. Income
Evaluation must contain complete Business Information, such
as Business Name, Average Daily Income, Type of Business,
Business Address, City or Municipality where the business is
established, Province, and Picture of the Establishment.
iii. Additionally, the average daily income should be at least ten

times higher than the daily repayment. The system will
automatically evaluate the Application and Income of the
applicant. Suppose the application doesn't satisfy the
conditions. In that case, the system will revoke the application
and send a notification to the Borrower's mobile application
and an SMS informing them of the revocation. If the
Application and Income Evaluation is satisfied, it will proceed
to the Payment History Evaluation. This evaluation checks if
the borrower has not completed their loan repayment for over
six months. The loan application will be revoked if the
borrower does not pay their loan for more than six months.
This evaluation applies only to existing borrowers, not new
applicants. After this evaluation, the application proceeds to the
Credit Investigator Approval stage, where the module awaits
approval from the Credit Investigator, who approves the loan
through their mobile application. Once the Credit Investigator
approves the loan, the module automatically sends the loan
application to the Loan Disbursement Module and waits for
Loan Disbursement Approval. Suppose the lender approves the
disbursement and all criteria are satisfied. In that case, the
system will automatically approve the loan application and
notify the Borrower via their mobile application and SMS,
indicating that the application is approved. Otherwise, the
system will reject the application and inform the user that the

loan application is revoked, ensuring that only qualified
applicants receive loans. Furthermore, the approved loan
application will be added to the list of approved loan
applications. Users can print the auto-generated promissory
note outlining the loan amount, repayment terms, and the
Borrower's commitment to repay the loan with a 10% monthly
interest rate within 60 days, equivalent to 20% for the entire
duration of the loan, and a QR Code that will be used in the
collection of repayments.
iv. Loan Disbursement module – allows users to approve loan

disbursements for pending loan applications from the Loan
Approval Module. It displays a list of pending loan
applications awaiting disbursement approval, where users can
view the details of each loan application and enter a
disbursement amount. The amount requested may not
necessarily be the amount disbursed; users can input less than
the requested amount but not greater. Once disbursed, the
system automatically approves the loan application, sending it
to the list of approved loan applications, which users can view
along with the details. Additionally, this module displays the
total balance of lending capital and prevents loan disbursement
approval if the lending capital balance is below the
disbursement amount. The lender can also add funds to the
lending company's capital, enabling them to approve pending
loan applications if short on funds and monitor the money
invested in the business.
v. Collection module – enables users to document the amount

remitted by Collectors, displaying a list of all collectors
scheduled to remit on the current day, along with their
corresponding Actual Recorded Remittance. The Actual

Recorded Remittance represents the sum of repayments
collected by the collector during their collection on the current
day. Users can add the Actual Amount Received, the amount
the collector remitted to the user. The system compares the
Actual Recorded Remittance to the Actual Amount Received to
identify discrepancies. If the difference between the Actual
Amount Received and the Actual Recorded Remittance is zero,
it is considered as having no discrepancies. Otherwise, a
discrepancy is detected in the collector's remittance, and the
system automatically notifies the collector through SMS and
their mobile application, alerting them to the discrepancies in
their remittance.
vi. Borrower Information Module - manages borrower information

and allows users to view it. Personal information provided by
the borrower during the loan application process is
automatically added to this module once the application is
approved. The module lists all active borrowers, including
information such as Name, Borrower ID, City or Municipality,
Gender, Business Name, Type of Business, Mobile Number,
Total Paid, and Balance. Moreover, it enables users to switch
between lists of fully paid borrowers, subject to the legal
actions of borrowers and defaulted borrowers. Users can search
for specific borrowers using the borrower's name, sort them
alphabetically in both ascending (A to Z) and descending (Z to
A) order, and filter them based on the City or Municipality they
live in, their Gender, and the Type of Business they have.
Additionally, users can click "View" for a specific borrower to
access the Borrower Information Report, which displays the
borrower's comprehensive information. The module also
includes functionality to print the borrower information
records, providing users with a physical copy of the loan

details.
This module includes the following report:
i. Borrower Information Report – displays the

borrower's personal information, including First
Name, Middle Name, Last Name, Gender, Date of
Birth, Mobile Number, Email, Address, City or
Municipality, and Province. It also presents
business information, such as Business Name,
Average Daily Income, Type of Business, Business
Address, City or Municipality where the business is
established, and Province. Furthermore, it
showcases documents, including a Photo of the
Borrower, a government-issued Valid ID, a Picture
of the Establishment, and a Business Permit
(Optional). Users can conveniently print the report
for further reference or record-keeping purposes.
.
vii. Loan Information Module - allows users to view and manage
loan information. Information provided during the loan
application process is automatically added to the module once
the application is approved. It displays a list of all open loans,
including details such as Borrower Name, Borrower ID, City or
Municipality, Gender, Business Type, Released Date,
Principal, Interest, Interest Rate, and Total Amount Due. Users
can switch between lists of new loans, fully paid loans,
restructured loans, and defaulted loans. They can search for
specific borrowers using the borrower's name, sort
alphabetically in ascending (A to Z) and descending (Z to A)
order, and filter based on City or Municipality, Gender, and
Type of Business. Users can access the Loan Information

Report by clicking "View" for a specific borrower, displaying
comprehensive loan information for that borrower. This
module automatically sends a past-due notice via mobile app
notification and SMS if there is an outstanding balance on the
maturity date, requesting that the borrower pays the entire
outstanding amount within a 7-day grace period. Otherwise, the
loan will be subject to restructuring. The module also
automatically restructures past-due loans, meaning the
outstanding balance will gain an additional 10% interest rate
per month or 20% interest for the 60-day loan duration after the
7-day grace period.
viii. Furthermore, after 180 days of non-payment, the borrower will

automatically be disqualified for future loans. Any attempt to
apply for a loan will be revoked in the Loan Approval Module.
Also, after 365 days of non-payment, the system will
automatically send a legal notice through a mobile app
notification and SMS, informing the borrower that they will be
subject to legal action for not paying their loan. The module
also includes functionality to print the loan information
records, providing users with a physical copy of the loan
details.
This module includes the following reports:
i. Loan Information Report – displays the borrower's

information, including the Picture of the Borrower,
Full Name, Borrower ID, Gender, Date of Birth,
Mobile Number, Email, Address, City or
Municipality, and Province. It also presents details
such as Mode of Disbursement, Principal Amount,
Loan Release Date, Approved Date, Interest

Method, Loan Interest, Loan Duration, Repayment
Cycle, Number of Repayments, and Loan Status.
Users can switch to other reports like the Payment
History and Amortization Schedule reports. Users
can conveniently print the report for further
reference or record-keeping purposes.
ii. Payment History Report - This report displays the
payment history for individual loans, including Total
Principal Return, Total Interest Return, Total
Repayment, and Number of Repayments. Users can
also view the list of all repayments made by the
borrower, which includes payment date, method of
payment (Walk-in or Collector), amount, and the
collector assigned to collect the repayment.
Additionally, users can search for specific repayments
using the date, sort them by date in ascending and
descending order, and filter based on the payment
method and the collector responsible for collecting the
repayment. This report is designed for convenient
organization and easy updating of loan repayment
information.
iii. Amortization Schedule Report - This report displays the
amortization table for the loan. This table shows the
payment date, amount, principal return of the payment,
interest return of the payment, total interest incurred,
and remaining balance over time.
ix. Repayment Module – manages borrower repayments, allowing

users to view all repayment records made by borrowers
through the Collector mobile application or directly within this
module on the current date. The list of repayments includes the
Borrower Name, Borrower ID, Payment Date, Mode of

Payment (Walk-in or Collector), Payment Amount, Month it
belongs, and the assigned collector for collecting the
repayment or, if paid through walk-in, the auditor in charge
who received the payment. The "void" function enables users
to void incorrect repayment transactions made by collectors;
however, these voided transactions still require lender
approval. If the repayment is not voided, the "view" function
displays repayment information such as Borrower Name,
Borrower ID, Date of Payment, Amount Paid, Outstanding
Balance, Remaining Days, Number of Repayments, and
Number of Missed Repayments. The module also summarizes
the Total Principal Return, Total Interest Return, Total
Repayment, and Number of Repayments made on the current
date. Users can add repayments for walk-in customers who
make payments at the office. They need to search for and select
the borrower making the repayment from the list of borrowers
and then input the payment amount. The system auto-generates
the payment date, cannot be changed or updated, and displays
the current date based on the Network Time Protocol.
x. Furthermore, users can search for specific borrowers using the

Borrower's First Name, Middle Name, or Last Name, sort them
alphabetically in ascending (A to Z) and descending (Z to A)
order, and filter based on Mode of Payment (Walk-in or
Collector) and the Collector assigned for collection. This
module also contains a list of all voided transactions. The user
can click the "Approve" button of the voided transaction to
approve it. Still, upon clicking the approve button, the system
will generate a prompt asking whether the user called the
borrower through the phone before clicking the approve button.
If the user clicks "Yes," it will proceed to a confirmation
prompt and subsequently void the transaction. Otherwise, the

approval will not be granted.
xi. Additionally, the system will automatically notify borrowers

through their mobile application and SMS, informing them of
the voided transaction. The approval of void transactions is
only available to Super Users. The module also includes
functionality to print the repayment records, providing users
with a physical copy of the transaction details.
d. Collector Management Module – This module manages collector

information and allows users to view and assign collectors to specific
areas. Collector information the collector provides through their
application is automatically added to this module once their account is
approved. The module displays a list of collectors, including
information such as the Collector's Name, Collector ID, Assigned
Area, Mobile Number, and Email. The "Assign" function enables users
to assign collectors to collection areas by City or Municipality, such as
Koronadal, Surallah, Polomolok, Tupi, Banga, and Norallah. The
"View" function displays detailed information about the collector,
including their Picture, Full Name, Gender, Mobile Number, Email,
and Assigned Area. It also provides the collection performance of the
collector, such as Total Collection, Number of Borrowers Assigned,
Total Collectibles, and their Collection Rate. Moreover, users can
search for specific collectors using the Collector's First Name, Middle
Name, or Last Name, sort them alphabetically in ascending (A to Z)
and descending (Z to A) order, and filter them based on their assigned
area. Additionally, users can click on a specific borrower to access the
Borrower Information Report, which displays the borrower's
comprehensive information.
e. User Management Module – The User Management Module enables

users to view accounts and displays a list of all active users, such as

Super Users, Auditors, Collectors, and Credit Investigators. The
displayed information includes Name, User ID, Role, Email, Mobile
Number, and a "Delete" function that allows users to delete an account
in case of termination, preventing further access. Users can search for
specific users using their Names, sort them alphabetically in ascending
(A to Z) or descending (Z to A) order and filter them based on their
role (Super User, Auditor, Collector, or Credit Investigator).
Additionally, the module facilitates the creation of accounts for Super
Users, Collectors, Credit Investigators, and Auditors. Users can
register their personal information, such as First Name, Middle Name,
Last Name, Email, Number, Roles (Super User, Auditor, Collector, or
Credit Investigator), Username, and Password. Passwords must be 8-
12 characters long, with a mix of at least one uppercase and one
lowercase letter, one number, and one special character. Each
username must be unique.
f. All fields, except Middle Name and Email, are required. The module
will not allow account creation if any required information is missing.
Upon successful account creation, the system sends the account
details, including username and password, to the respective users via
SMS, instructing them to log in and change their passwords. Viewing
user lists and account creation processes are exclusive to Super User
accounts. The developer provides the first Super User account.
g. Furthermore, this module allows all users to update their profile

information, including Profile Picture, First Name, Middle Name, Last
Name, Email, Number, Username, and Password. To change the
Profile Picture, users can click the placeholder, which navigates to
their computer's pictures folder, to select a new image. When updating
passwords, users must enter their current password, followed by the
new one, and then re-enter it for confirmation. Passwords should meet
the same criteria as when creating an account. Upon clicking

"Update," the system automatically updates the user's password and
any other personal information that has been changed. The module
assigns specific modules and access levels based on user roles. Super
Users can access all modules, while Auditors have access to the
Dashboard, Loan Application Module, Loan Approval Module,
Borrower Information Module, Loan Information Module, Repayment
Module (Approval of Voided Transaction is not included), User
Management Module (Account Update functionality only), and
Reports Management Module. This ensures that each user has
appropriate permissions for their role within the organization.
h. Reports Management Module – This allows users to generate reports

that provide valuable insights into the company's performance.
Additionally, users can export these reports into PDF files.
i. Loan Application Report - This report overviews

loan application statuses, including the Number of
Loan Applications, Approved Applications,
Rejected Applications, and Total Requested
Amount. The report displays a list of all pending
applications, featuring information such as Name,
Borrower Applicant ID, Application Date, City or
Municipality, Gender, Business Type, Loan
Amount, Status, and a "View" function that allows
users to view the loan application of the selected
applicant. Moreover, it lets users switch between
Daily, Weekly, Monthly, and Yearly Reports.
Additionally, users can switch between lists of
approved and rejected applications. Users can
search for specific applicants using their First

Name, Middle Name, or Last Name, sort them
alphabetically in both ascending (A to Z) and
descending (Z to A) order, and filter them based on
the City or Municipality they live in, their Gender,
and the Type of Business they have. Furthermore,
users can print the report for documentation or
further reference.
ii. Outstanding Balance Report - This report provides

an overview of loans with pending and unpaid loan
balances. It includes a summary of the Number of
Borrowers with Outstanding Balances and the Total
Amount of Outstanding Balances. The report
displays a list of all loans with outstanding
balances, featuring information such as Name,
Borrower ID, Due Date, City or Municipality,
Gender, Business Type, Loan Amount, Outstanding
Balance, and a "View" function that allows users to
view the loan information of the selected borrower.
Moreover, it lets users switch between Daily,
Weekly, Monthly, and Yearly Reports. Users can
search for specific borrowers using their First
further reference.
iii. Loan Portfolio Report - This report provides an

overview of the entire loan portfolio, including the

number of borrowers, total principal released, total
collections, number of new borrowers, total
accounts receivables, principal receivables, interest
receivables, the total amount of fees, number of
open loans, number of fully paid loans, number of
restructured loans, and number of default loans.
Additionally, it displays charts of loans released,
loan collections, the number of borrowers per area,
and types of loans. Moreover, it lets users switch
between Daily, Weekly, and Monthly Reports.
Furthermore, users can print the report for
documentation or further reference.
iv. Delinquency Report – This report provides an

overview of past-due loans, including a summary of
the Number of Delinquent Accounts and the Total
Outstanding Balance of Delinquent Accounts. The
report displays a list of all delinquent accounts,
featuring information such as Name, Borrower ID,
Due Date, City or Municipality, Gender, Business
Type, Days Delinquent, Outstanding Balance of
Delinquent account, and a "View" function that
allows users to view the loan information of the
selected account. Moreover, it lets users switch
between Daily, Weekly, and Monthly Reports.
Users can search for specific accounts using their
First Name, Middle Name, or Last Name, sort them

further reference.
v. Disbursement Report - This report provides an

overview of loan disbursements, including a
summary of the Number of Disbursements and the
Total Disbursed Amount. The report displays a list
of all disbursements made, featuring information
such as Name, Borrower ID, Disbursement Date,
City or Municipality, Gender, Business Type,
Disbursement Amount, the person who disbursed
the money, and a "View" function that allows users
to view the loan information of the selected
borrower. Moreover, it lets users switch between
Daily, Weekly, Monthly, and Yearly Reports. Users
can search for specific accounts using their First
further reference.
vi. Collectors Report – This report provides an

overview of the collection information, including a
summary of the Number of Borrowers, Total
Collection, and Total Collectibles. The report
displays a list of all collectors, featuring information
such as Name, Collector ID, Area Assigned,
Collection Rate, Expected Collection, Actual
Recorded Remittance, and Actual Amount
Remitted, along with a "View" function that allows

users to view the selected collector's information.
Moreover, it lets users switch between Daily,
Weekly, Monthly, and Yearly Reports. Users can
search for specific collectors using their First Name,
Middle Name, or Last Name, sort them
alphabetically in ascending (A to Z) and descending
(Z to A) order, and filter them based on the Area
Assigned. Furthermore, users can print the report
for documentation or further reference.
vii. Gross Income Report – presents users with a

summary of essential metrics, including Gross
Income, Revenue, Interest Income, and Service Fee
Income. It provides a Gross Income statement that
calculates Revenue by summing up Interest Income
and Service Fee Income. Gross Income is computed
by deducting Loan Losses (the summation of all
default loans) and provisions for Loan Losses (an
estimated amount to cover expected credit losses
from non-performing loans). Users can filter the
table based on Daily, Monthly, Yearly, or custom
date ranges. Also, it provides a line chart that
visualizes the Gross Income trend over time, with
adjustable intervals for daily, monthly, or yearly
data points. A "Print" button generates a printable
version of the report for reference or record-
keeping.
2. Mobile Applications
a. Collector.
i. Login module – allows users to enter their account
information, such as Username, Email Address, Contact

Number, and Password, to access their accounts. Users can
use their Username, Email Address, or Contact Number for
this purpose. Passwords must meet the required criteria: 8-
12 characters long, containing a mix of at least one
uppercase and one lowercase letter, one number, and one
special character. Additionally, each username must be
unique and not identical to any other user's username.
Users input their unique identifier (Username, Email
Address, or Contact Number) and password into the
designated text fields to log in. If the entered information is
correct, the module grants access to the user's account. In
case of missing or incorrect information, the module denies
access. If a user enters the wrong password thrice, the
system automatically initiates password recovery. The user
will be prompted to check their registered email address or
contact number for the OTP (One-Time Password), which
will be sent automatically. The user must input the received
OTP into the designated text field for verification. Once the
OTP is verified, the user will be guided through creating a
new password. They must enter their new password and re-
enter it for confirmation. Alternatively, if users forget their
password from the beginning, they can click the "Forgot
Password" link to follow the same password recovery
process as previously described.
ii. Dashboard module – provides a quick overview of the
collector's total daily collection amount, the total number of
paid borrowers, the total number of unpaid borrowers, and
daily collection rates. Additionally, it displays the
Collector's Name, Collector ID, and Picture. This
functionality helps collectors track and monitor their
performance at a glance.

iii. Collection Module – This module enables collectors to
record borrowers' daily repayments. It allows users to view
the list of Paid Borrowers, Unpaid Borrowers, Total
Amount Collected, and Total Amount Collectibles for the
current date. Users can also change the date to view past
collection transactions. Collectors can record payments by
scanning a borrower's QR code. If the borrower has lost
their QR code, the collector can still record the repayment
by searching for and selecting the borrower's name within
the module under Unpaid Borrowers. Upon finding the
borrower, the system directs the collector to a record page
displaying the Name and Borrower ID of the Borrower,
Payment Date (unchangeable and based on Network Time
Protocol), Balance (incurred by the borrower for not paying
the full repayment), Daily Repayment (the expected
amount the borrower needs to pay), Amount (total due,
which is the sum of the balance and the repayment today),
and Amount Paid (actual amount given by the borrower,
pre-filled to match the amount due). The collector can
easily customize the repayment amount if the borrower
does not pay the due amount. Subsequently, the module
presents a payment summary report summarizing the
repayment transaction, including the Name and Borrower
ID of the borrower, payment date, daily repayment, total
amount due, and the amount paid. This page allows the
collector to confirm the transaction details. Once verified,
the module automatically generates a digital receipt,
physical receipt, and payment notification through the
mobile application and SMS. The record will be updated in
real-time.
iv. Notification Module – allows users to receive timely

notifications, alerts, and updates, ensuring collectors stay
informed and effectively manage their collection activities.
Notifications include new borrowers assigned to them once
a loan application is approved, payment due date reminders
for borrowers under their responsibility (sent two days
before the due date), alerts for discrepancies in the amount
collected and remitted, as well as general announcements
or policy updates from the lending company.
v. User Management Module – allows all users to modify
their profile information, including Profile Picture, First
Name, Middle Name, Last Name, Email, Number,
Username, and Password. To change the Profile Picture,
users can click on the placeholder, which directs them to
their gallery to select a new image. When updating
passwords, users must enter their current password,
followed by the new one, and then confirm the new one by
re-entering it. Passwords must be 8-12 characters long and
contain a mix of at least one uppercase and one lowercase
letter, one number, and one special character. If users
update their username, it must be unique and not identical
to any other user's username. All fields except Middle
Name, Profile Picture, and Email must have input. Upon
clicking "Update," the system automatically updates the
user's information that has been changed. If any required
field is missing, the update process will not proceed, and an
error message will be displayed to the user.
b. Credit Investigator
i. Login module – allows users to enter their account

enter it for confirmation. Alternatively, if a user forgets
their password from the beginning, they can click the
"Forgot Password" link to follow the same password
recovery process as previously described.
ii. Dashboard module – provides a quick overview of the
credit investigator's total number of loan applications
requiring credit investigation, the total number of credit
investigation-approved loan applications, and the total
number of credit investigation-revoked loan applications.
Additionally, it displays the Credit Investigator's Name,
Credit Investigator ID, and Picture. This functionality helps
credit investigators track and monitor their performance at

a glance.
iii. Loan Application Review Module – allows users to view
the list of loan applications that require credit investigation.
It includes the applicant's name, applicant ID, and a "View"
functionality, which displays a checklist to assist credit
investigators in authenticating the information provided by
the applicant. The checklist includes verification of
personal information such as name, gender, date of birth,
mobile number, email, and address; verification of
submitted documents like the borrower's photo,
government-issued valid ID, picture of the establishment,
and business permit if provided; verification of business
information, including business name, average daily
income, type of business, and business address. It also has
“Approve” and “Reject” buttons. Once the checklist is all
checked, the system will automatically enable the
“Approve” button and disable the “Revoke” button.
However, if not complete, the system will disable the
“Approve” button and enable the” Revoke” button. This
thorough income verification process assists Credit
Investigators in ensuring that the applicant has the financial
capacity to repay the loan, ultimately helping minimize the
default risk and promote responsible lending practices.
iv. Notification Module – enables users to receive timely
notifications, alerts, and updates. Notifications include new
loan applications requiring credit investigation and general
announcements or policy updates from the lending
company. This ensures that Credit Investigators stay
informed and can effectively manage their credit
investigation activities.
v. User Management Module – allows all users to modify

c. Borrower.
i. Registration module – allows users to input their personal
information, including First Name, Middle Name, Last
Name, Email, Number, Username, and Password. To
confirm their password, users must re-enter it in the
designated confirmation text field. Passwords must be 8-12
characters long and contain a mix of at least one uppercase
and one lowercase letter, one number, and one special
character. Each username must also be unique, not
matching any existing user's username. Users can upload a
profile picture by clicking on the profile picture
placeholder, which directs them to their computer's gallery.
From there, users can select their desired image as their
profile picture. All fields except Middle Name, Email, and

Profile Picture are required. The module will not allow the
user to complete the registration process if any required
information is missing.
ii. Login module – allows users to enter their account
enter it for confirmation. Alternatively, if users forget their
password from the beginning, they can click the "Forgot
Password" link to follow the same password recovery
process as previously described.
iii. Dashboard Module – This gives users an overview of their
loans, including details on the loan amount, their borrower

id, and upcoming payment, reminding users of their next
payment.
iv. Loan Application Module – enables applicants to apply for
loans using the mobile application. Users can input the
applicant's Personal, Business, and Loan Information
before applying to the system. Specifically, users need to
provide the following Personal Information: First Name,
Middle Name, Last Name, Gender, Date of Birth, Mobile
Number, Email, Address, City or Municipality, and
Province. Next, users must enter the Business Information,
including Business Name, Average Daily Income, Type of
Business, Business Address, City or Municipality where
the business is established, and Province. After completing
this information, users must upload the following
documents: a Photo of the Borrower, a government-issued
Valid ID, a Picture of the Establishment, and a Business
Permit (Optional). Once these documents are uploaded,
users can choose their desired loan amount. For new
borrowers, the maximum loan amount is 5,000 pesos, while
existing borrowers can request up to 50,000 pesos. Users
can either input the loan amount directly or use a slider to
adjust the amount. Note that the requested amount is still
subject to approval and may change depending on the
lender's decision. The system will automatically calculate
the Total Amount Due, Daily Repayment, and Total
Disbursement based on the entered loan amount. The Total
Amount Due is computed by adding the Loan Amount to
the 20% interest (10% monthly interest for two months).
The Daily Repayment is calculated by dividing the Total
Amount Due by 60 days. Lastly, the Total Disbursement is
determined by subtracting a 1.1% Service Fee from the

loan amount. Once the application is complete, users can
review the Loan Application Summary Report and print it
if necessary. After reviewing the application, users must
click the "Submit" button to send the loan application for
review and approval. The module will automatically
forward the submitted application to the Loan Approval
Module for further processing.
v. Repayment History Module – presents the borrower's
complete payment record, providing insights into the
number of missed payments, total outstanding balance, and
total repayments made. Users can access a detailed
repayment schedule that dynamically updates each
repayment. This schedule includes the payment date,
repayment amount, corresponding month, payment status
(Paid or Unpaid), and the assigned collector responsible for
managing the repayment. If a user fails to pay on the
scheduled date, the status is marked as Unpaid. The
schedule also displays upcoming payments as unpaid,
ensuring users have a clear and organized view of the
borrower's repayment history.
vi. Notification Module – allows users to receive timely
notifications, alerts, and updates. Notifications include
updates on loan application status (such as pending,
revoked, or approved), upcoming payment due dates (sent
two days before the due date), confirmation of received
payments, alerts for missed or late payments, and general
announcements or policy updates from the lending
company. This ensures that borrowers stay informed and
can effectively manage their loan repayments.
vii. User Management Module – allows all users to modify

Limitation
The system will be exclusively designed for Web-based Daily Loan management
and payment collection through a mobile QR payment collection system. As such,
it will not encompass features for generating accounting reports like balance
sheets, income statements, or cash flow statements. Additionally, the system will
not include any functionalities related to collateral management, such as
registration, valuation, and monitoring of collateral assets. Moreover, the
management of business expenses will also not be included within the system's
scope.
Delimitation
The study will be confined to a loan term of 60 days. Although a business permit

is not required for loan applications, a physical establishment is a prerequisite for
approval. The study will adhere to a 10% interest rate, cash disbursement only,
and a 6-month disqualification term. Additionally, signing the borrower's
promissory note will still be conducted manually.

REVIEW OF RELATED LITERATURE/SYSTEMS
This chapter thoroughly explores the existing literature and related systems relevant to
the proposed system. It delves into the theoretical considerations and studies
underpinning the system's development and design, outlining the key concepts,
methodologies, and technologies that have shaped the current landscape. Additionally,
the chapter investigates various related systems, comparing their features, strengths, and
limitations to identify potential areas of improvement and innovation for the proposed
system.
Review of Related Literature
General Overview of the Study
Loan Management System.
A Loan Management System (LMS) is a sophisticated software application

designed to streamline the process of managing loans, from loan origination to
servicing and collections. It enables financial institutions, such as banks and Non-
Banking Financial Companies (NBFCs), to efficiently track and manage all
aspects of their loan portfolios. The LMS automates various loan processes,
including application processing, underwriting, loan disbursement, and repayment
tracking. Furthermore, it facilitates monitoring essential loan metrics, such as loan
balances, interest rates, payment schedules, and late fees. The LMS provides real-
time access to loan data, empowering financial institutions to make informed
decisions based on up-to-date information. A Loan Management System
simplifies loan management, enabling financial institutions to deliver efficient and
effective loan services to their customers (Sahota & Jha, 2019).
The Loan Management System plays a critical role in the lending industry, as it
manages various types of loans, including standard mortgages and interest-only
loans. Its importance lies in determining the success or failure of any credit

institution. The system streamlines transactions, regulates business activities by
managing loan information, tracks payment status, and performs accounting tasks.
It is equipped with multiple modules, such as loan tracking, mortgage module,
lending module, and more, which enable lenders to manage their loan portfolios
and stay updated with the financial data required for informed decision-making.
The loan management system's key features include accurately tracking partial
payments, handling conventional and non-conventional financing, and charging or
collecting late fees. In addition to its dynamic and flexible nature, the loan
management system impacts lenders, investors, and not-for-profit organizations
alike, fostering strong, long-term client relationships. The success of this software
program lies in its capacity to enhance communication and collaboration between
customers and managers while ensuring data security and efficient tracking of
information (Singh & Singh, 2020).
The loan management process encompasses several stages to ensure efficient and
precise loan management. The first stage is loan origination, wherein the
Borrower submits a loan application, and the lender verifies the information
provided. The second stage is loan underwriting, during which the lender assesses
the Borrower's financial position and creditworthiness. If approved, the loan
advances to the next stage, loan servicing, where the Borrower makes payments.
The loan management system diligently tracks payments, manages the loan
portfolio, and generates reports on loan status and financial performance. In
instances of delinquency or default, the system automatically generates alerts and
notifies the relevant parties. Ultimately, the loan management system facilitates
repayment and closure, ensuring a seamless and efficient end-to-end loan
management experience (Sahota & Jha, 2019).
Theoretical Considerations
Theory of Cloud Computing
As Qian, Luo, Yujian, and Guo (2009) defined, cloud computing represents a
computing approach that facilitates IT service delivery through a vast array of

cost-effective computing units interconnected by IP networks. This method
originates in search engine platform design and is characterized by its ability to
provide extensive computing resources with superior scalability and flexibility.
He also said that cloud computing had become a crucial component of
contemporary technology, fostering the advancement and proliferation of various
applications, including those based on the web.
A web application is specifically designed to operate on the Internet or an intranet

through a web browser. Typically written in web languages like HTML,
JavaScript, or Java, these applications require execution through a browser for
functionality (Ern, 2019). Web-based applications have become increasingly
important in recent years, significantly reshaping the landscape of financial
transactions, including loan management systems.
Lubega (2020) highlights the advantages of cloud computing for loan

management systems, asserting that its online nature offers immediate access and
response, making it a highly suitable solution for managing loans. One key
advantage is accessibility; cloud computing allows users to access loan
management services from anywhere at any time, as long as they have an internet
connection. This can increase efficiency and convenience for both financial
institutions and borrowers.
Kamruzzaman (2019) highlights the importance of efficient and secure loan

management systems for credit institutions. Cloud computing is crucial in
achieving this, offering various advantages such as a centralized platform,
seamless connection of loan portfolios and branches, streamlined underwriting
and approval processes, and real-time information sharing. Additionally, it
enables client accessibility for loan registration, application, and tracking. The
proposed architecture also addresses reliability and security concerns, providing a
dependable and safe system for institutions and clients. Cloud computing
significantly enhances loan management systems by delivering a centralized,
accessible, secure platform.

Bizoza (2022) emphasizes the importance of digital solutions in the banking
sector, particularly in loan management processes, as mobile technology and
internet access expand. The proposed mobile-based system for managing loan
requests relies heavily on cloud computing, which provides users with a seamless,
secure, and reliable experience. By leveraging cloud computing, the system can
efficiently handle loan requests, securely store customer data, and ensure high
availability and accessibility for bank staff and customers. Ultimately, cloud
computing is an essential component of the mobile-based loan management
system proposed by Bizoza (2022), significantly enhancing the efficiency,
security, and user experience of the loan application process.
Mujuzi (2012) further highlights that web-based applications hold the potential to
revolutionize the efficiency of financial transactions within loan management
systems. The internet's interactive nature, coupled with its inherent capabilities for
seamless communication, accessibility, and interactivity, renders it an ideal
platform for streamlining loan management processes. By harnessing the power
of web technology and integrating it with traditional systems such as databases
and transaction processing systems, Web-based Daily Loan management systems
enable users to store, retrieve, update, and modify data within the database.
Moreover, he stated that Web-based Daily Loan management systems offer
numerous advantages over traditional systems. These benefits include real-time
updates, remote accessibility, and improved security features. Borrowers and
lenders can access and manage their loan information anywhere, enhancing
convenience and efficiency. Additionally, web-based systems often provide more
robust security measures to protect sensitive financial data, ensuring privacy and
compliance requirements are met.
Theory of Mobile Application
Mobile applications, defined by Islam and Mazumder (2010) as software

programs designed to run on mobile devices and perform specific tasks for users,
have become a rapidly growing sector within the global Information and

Communication Technology industry. These applications now offer user-friendly,
inexpensive, and accessible solutions that can operate anywhere.
Bizoza (2022) emphasizes the importance and advantages of mobile applications

in transforming and streamlining loan management processes. As mobile
technology and internet access continue to increase, adopting mobile applications
aligns with current digital trends. The proposed mobile-based system allows users
to apply for loans and receive approval or rejection notifications online,
eliminating the need for physical presence and manual intervention. It results in a
more efficient and convenient experience, providing a quicker and more
streamlined process with secure and reliable conditions. The positive feedback
regarding the mobile application's performance, ease of use, and usefulness
underscores its significance in modernizing and enhancing existing loan
management processes.
Dagba, Lohounmè, and Nambila (2012) emphasize the vital role of smartphone-
based extensions for loan management systems, particularly for small
microfinance institutions in underdeveloped countries facing challenges such as
geographic isolation and high transaction costs. To overcome these challenges,
the authors propose a solution that grants users access to select features of the
enterprise application via smartphones, relying on a service-oriented architecture
with main features developed as web services. Integrating a smartphone-based
extension for loan management systems not only improves efficiency and
accessibility for users but also facilitates real-time updates, streamlined
communication, and informed decision-making for loan officers. This enhanced
accessibility substantially reduces the time required to process and approve loans,
resulting in increased client satisfaction and improved operational efficiency.
Ultimately, developing smartphone-based extensions for loan management
systems is crucial for optimizing the lending process, fostering greater financial
inclusion, and adequately addressing the needs of low-income populations and
micro-enterprises.

Theory of Quick Response Code
In 1994, Denso Wave, a former Toyota subsidiary company and a regular Japan
Robot Association member, invented the QR Code. This squared two-dimensional
barcode has had a significant impact on various industries. The primary goal of
the QR Code was to expedite the process of tracking car components during
manufacturing and distribution. Consequently, the company experienced
enhanced work efficiency across its business, services, and systems (Lotfipanah,
2020).
The QR Code, as described by Lotfipanah (2020), consists of black and white

squares and dots technology, allowing it to hold substantial amounts of data
within a compact space. This design provides omnidirectional scanning
capabilities, representing a notable improvement over the barcode scanners
prevalent in the 1980s. "QR" means "Quick Response," reflecting its swift
scanning and processing capacity. He also emphasized that the QR Code's
adaptability has led to many applications beyond its initial purpose of tracking
automotive components. QR Codes are used extensively across various industries,
such as marketing, inventory management, and ticketing. The technology's
adaptability and efficiency have played a significant role in its widespread
adoption and ongoing relevance in today's world.
As QR code technology continues to gain traction in various industries, its

application in the financial sector is becoming increasingly relevant. Karmawan,
Ruslan, Suharjito, Fernando, and Gui (2019) emphasize the potential for
improved user experience in loan payments through the convenience and security
aspects of QR codes within mobile banking platforms. The study's findings
suggest that QR codes, as a payment method, contribute to a more efficient loan
payment process by seamlessly integrating with users' fund source accounts. In
addition, the research indicates that QR code payment systems can be used as an
alternative payment option in mobile banking, offering a convenient solution for
both person-to-person and merchant transactions without additional transfers or

top-ups.
According to Otuonye, Ibe, Njoku, and Eze (2022), the importance and
advantages of integrating Quick Response (QR) Code technology in loan
management systems are numerous, particularly in addressing the challenges
faced by microfinance banks and other lending institutions. As the number of
customers seeking personal loans rises, especially in the post-COVID-19 era, QR
Code technology offers a solution by providing accessible and better-secured loan
validation and processing. This innovative framework helps combat fraudulent
customers who make false claims with their loan application documentation or
attempt to access multiple loans from different banks using single collateral
security. Additionally, the QR Code system reduces "insider abuse" by preventing
bank officials from granting credit facilities without following due process or
violating the provisions of microfinance banking sector policies. Overall,
implementing QR Code technology in loan management systems ensures loan
approvals are carried out according to internal and external regulations, leading to
more secure and efficient processes.
Theory of Programming Language
As a server-side scripting language, PHP is widely employed in web development

due to its open-source nature and syntax similarities to C and Java, making it
user-friendly and easy to learn. When used with web servers and database
management systems, PHP enables the creation of dynamic web pages, form
processing, and user authentication, streamlining the development process and
enhancing efficiency through pre-built libraries and tools (Prokofyeva &
Boltunova, 2017).
Kamruzzaman (2019) designed a Loan Management System (LMS) to manage

the entire lending process, from loan applications to repayments, utilizing ISI
Server, PHP, and MySQL. The study underscores PHP as the optimal
programming language for loan management systems, citing advantages such as
accessibility, adaptability, and a robust developer support network.

Lubega (2020) further emphasizes PHP's effectiveness as a programming
language tailored explicitly for loan management systems. Key factors
contributing to PHP's suitability include its speed, robustness, memory
management, cost-effectiveness, seamless integration with MySQL databases, and
syntax reminiscent of Java/C++ programming styles, all of which enable the
development of efficient and versatile loan management systems.
On this, Otuonye, Ibe, Njoku, and Eze (2022) highlight PHP's suitability for
developing a loan management framework with QR Code Enhancement. The
authors employed PHP for server-side scripting, managing dynamic content,
databases, and session tracking. The integration of PHP with MySQL and Apache
exemplifies its adaptability and ability to work seamlessly with other essential
software components.
Java, a general-purpose programming language, was developed by Sun

Microsystems in 1995 and influenced by C++, as described by Jabri (2021). He
said that the primary motivation behind Java was to create a language that allows
users to "write once, run everywhere." It is achieved using bytecode, interpreted
by the Java Runtime Environment (JRE) or Java Virtual Machine (JVM). The
JRE acts as a virtual computer, interpreting bytecode and translating it for the host
computer, enabling Java code to run on various platforms. Java has four
platforms: Java Standard Edition (SE), Java Enterprise Edition (EE), Java Micro
Edition (ME), and JavaFX, each catering to different application needs. Jabri
emphasizes that C++ and C heavily influence Java's syntax, and it is designed
primarily as an object-oriented language. Java does not support operator
overloading or multiple inheritances for classes, but multiple inheritances are
supported for interfaces.
Bizoza (2022) emphasizes in his study that Java is the best programming language
for Android development. In the study, he introduces a Mobile-Based System for
Loan Management, which significantly benefits users by offering user-
friendliness, reliability, adaptability, and alignment with BGF Bank's vision and

mission. The system employs various technologies, including Android Studio as
the IDE for mobile application development and Java as its programming
language. It demonstrates the suitability and effectiveness of Java as the preferred
programming language for Android development.
The effectiveness of PHP and Java as programming languages for loan

management systems has been highlighted in various studies. PHP, a server-side
scripting language, is widely used in web development due to its user-friendly
nature, ease of learning, and compatibility with web servers and database
management systems (Prokofyeva & Boltunova, 2017). Its strengths have been
demonstrated in loan management systems designed by Kamruzzaman (2019) and
Lubega (2020), who emphasize PHP's accessibility, adaptability, and robust
developer support network.
On the other hand, Java is a general-purpose programming language well-suited

for Android development (Jabri, 2021). Its "write once, run everywhere"
approach, facilitated by bytecode and JRE/JVM, allows cross-platform
compatibility. Bizoza (2022) highlights Java's effectiveness in a Mobile-Based
System for Loan Management, demonstrating its user-friendliness, reliability, and
adaptability.
Both PHP and Java have proven their merits as programming languages for loan
management systems. PHP excels in web development and server-side scripting,
while Java is the optimal choice for Android development. These programming
languages offer unique advantages depending on the specific needs and
requirements of the system being developed.
Theory of Web Framework
Anif, Dentha, and Sindung (2017) describe the Laravel framework as a

sophisticated web development tool specifically designed to assist developers in
creating web applications with a focus on simplicity and flexibility in design. The
framework adopts the Model-View-Controller (MVC) method, effectively

separating data (Model) from the View and application logic (Controller). Within
this context, Models are utilized to handle queries and manipulate data to and
from a database. The Laravel framework is employed in this system to facilitate
the preparation of system design, encompassing software installation and design
creation in harmony with the overarching system design.
Setiawan and Effendy (2022) underscore the significance of the Laravel

Framework in designing and developing Loan Cooperative Information Systems.
The authors underscore the critical nature of the design stage, which entails
coding, structure, interface representation, and program creation procedures. By
leveraging Laravel, a widely used PHP framework, they posit that developers can
seamlessly transition from needs analysis to design interface representation within
information systems. The Laravel Framework capitalizes on the Model, View,
and Controller (MVC) architecture, streamlining the coding process and
producing a well-structured program. During the development phase, the
framework guarantees alignment with the previous design stage, resulting in a
functional and efficient Loan Cooperative Information System. Consequently, the
authors maintain that the Laravel Framework is the optimal choice for developing
Loan Cooperative Information Systems, given its structured methodology,
extensive features, and robust support for design and development processes.
Theory of Relational Database
Blansit (2006) defines a relational database as a type of database that utilizes the
relational model developed by E. F. Codd in the early 1970s. This model groups
similar objects and breaks down complex objects into simpler ones, closely
mimicking how people think. A relational database focuses on the ability to relate
information from one database table to another, allowing for more powerful and
efficient data manipulation than simple, one-table applications.
The RDBMS (Relational Database Management System) is well-suited for loan

management systems due to its inherent ease of use and organizational
capabilities. Based on the concept of relational models in databases, RDBMS

employs Entity-Relationship Diagrams to represent the various relations between
tables, allowing for efficient organization and management of complex loan data.
By using rows and columns, relational databases simplify the storage and retrieval
of data in the context of loan management systems, streamlining the process and
reducing the potential for errors. Additionally, RDBMS provides a scalable and
flexible solution that can adapt to the changing needs of a loan management
system as it grows, further enhancing its suitability for such applications
(Carranto, 2021).
Building on this, a study by Kamruzzaman (2019) emphasizes the suitability of

MySQL, a specific RDBMS, for loan management systems. Its widespread
popularity and recognition are primarily attributed to its free, open-source
solution availability. Among the numerous advantages, MySQL offers are regular
updates, a user-friendly interface, and batch commands that efficiently process
large amounts of data. Furthermore, MySQL's focus on speed and reliability has
made it a preferred choice for web applications. The research highlights MySQL's
ability to easily manage information from various table types, its scalability for
business use through paid editions, and the availability of support even for the
free version. These factors collectively demonstrate that MySQL is well-suited for
implementing loan management systems.
According to Lubega (2020), MySQL is a suitable choice for a loan management

system database due to its ease of use and efficient handling of records. The
statement highlights that MySQL allows simple queries to retrieve and maintain
records, which is crucial for managing complex data in loan management
systems. MySQL's ease of use and efficient record handling make it a valuable
choice for loan management systems. Overall, Lubega (2020) underscores the
importance of MySQL as a good database choice for loan management systems
due to its user-friendliness and efficient handling of data.
According to Bizoza (2022), MySQL is a suitable choice for loan management

systems, particularly mobile ones, due to its numerous advantages. MySQL is

cost-effective, open-source, and cross-platform compatible, making it accessible
and adaptable for various systems. It's excellent performance and rapid
development capabilities allow for efficiently handling complex data in loan
management systems. Additionally, MySQL provides continuous updates,
ensuring that the system remains up-to-date and secure. Overall, the importance
and advantages of MySQL make it a reliable and effective database choice for
mobile loan management systems.
Theory of SMS Technology
As defined by Brown (2021), while most mobile phones are primarily used for
making wireless telephone calls, these devices also come with additional features
that are often underutilized or ignored. In recent years, consumers have started
extensively using Short Message Services (SMS), also known as text messaging.
This fundamental service allows subscribers to exchange brief text messages.
SMS can also transmit binary data over the air, with messages containing binary
data being managed by specific applications on the phone. These applications
enable users to perform tasks such as downloading ringtones, toggling animation
on and off, sending and receiving picture messages, or altering the graphical user
interface of the handset. If messages exceed the maximum length, they can be
segmented into shorter messages, with a portion of the payload allocated to a
user-defined header specifying the sequence information of each segment.
According to Karlan, Morten, and Zinman (2012), SMS messages play a crucial
role in loan management due to their impact on repayment rates. The study found
that messages mentioning the loan officer's name were particularly effective in
improving repayment rates. This effect was more significant and stronger for
clients who had previously borrowed from the bank and had been serviced by the
loan officer. The research suggests that these messages trigger feelings of social
obligation and reciprocity, implying that the effectiveness of SMS messages in
loan management is driven by personal relationships rather than by signaling
closer monitoring intent.

History of Development
The history of loan management systems can be traced back to the 1970s with the
development of the AERE Library Computer-Based Loans System—Coblos
(Wilson & Greenhalgh, 1971). Coblos was an offline computer-based system that
relied on IBM teletypewriters and IBM System/360 mainframe computers for
managing loans, discharges, reservations, and other document-related
transactions. At the time, the limited technology made it challenging to handle the
growing demands of libraries and financial institutions. However, as technology
progressed, software solutions were incorporated into loan management systems,
bringing in a new era of efficiency and automation.
Fong, Donaldson, and Teeter (1997) conducted a comprehensive comparative

analysis of interlibrary loan management software such as SAVEIT, AVISO, and
PRS. Each of these software systems utilized distinct technologies and
methodologies to address specific challenges libraries and financial institutions
faced at the time.
SAVEIT (Shared Automated Visual Information Technology) was an advanced

interlibrary loan management system that leveraged relational databases and
graphical user interfaces (GUIs) to streamline the loan process. The design
provided a user-friendly interface that made it easy for library staff to manage
loan requests, track items, and communicate with other libraries in the network.
SAVEIT was designed to operate on multiple platforms, making it a versatile
solution for institutions with diverse technological infrastructures (Fong,
Donaldson, & Teeter, 1997).
AVISO (Automated Visual Information System for Online Loans) was another
interlibrary loan management software that used the Internet and web-based
applications to facilitate communication and data sharing between libraries.
AVISO employed internet protocols such as Z39.50 (an international standard for
information retrieval) to enable seamless integration with library catalogs and
other bibliographic databases. It allowed library staff to search, request, and track

items more efficiently, reducing the need for manual intervention and increasing
the overall efficiency of the loan management process (Fong, Donaldson, &
Teeter, 1997).
PRS (Patron Request System) was a modular loan management software that
adopted a client-server architecture to enhance flexibility and scalability. PRS
featured customizable modules for various loan management tasks, such as
request management, tracking, and reporting. Using a client-server model, PRS
enabled libraries to distribute the workload across multiple machines, improving
performance and responsiveness even in high-traffic scenarios. The system also
supported integration with various library management systems and provided
APIs (Application Programming Interfaces) for custom development and
extension (Fong, Donaldson, & Teeter, 1997).
The study conducted by Fong, Donaldson, and Teeter (1997) showcased the
potential of software-based solutions like SAVEIT, AVISO, and PRS to address
the increasing needs of libraries and financial institutions. Each of these systems
employed unique technologies and approaches, such as relational databases,
GUIs, internet protocols, and client-server architectures, to automate and
streamline the control of borrowing and lending. The success of these systems
highlighted the need for continued advancements in loan management systems to
keep pace with the ever-evolving technological landscape.
As the technology landscape evolved, loan management systems began

incorporating more automated features to reduce errors and complexities
associated with manual systems. In 2013, Mbam (2013) proposed an automated
loan management system that utilized SQL Server database architecture and
Visual Basic.Net framework. This system focused on managing short-term and
long-term loans while ensuring data integrity, security, and fast retrieval response
times. The development of such systems marked a significant milestone in loan
management, as they provided a more robust and reliable infrastructure for
managing loans.

The emergence of blockchain technology and smart contracts in the late 2010s
opened new possibilities for loan management systems. Yu, Xu, Zhang, Liu, and
Liao (2018) designed a loan system based on smart contracts, which allowed for
decentralized and non-tamper able transactions without the need for any trust base
or third-party intermediaries. This innovative approach offered a glimpse into the
future of loan management, where transparency, security, and automation would
play a critical role.
Capitalizing on the potential of smart contracts, Wang, Guo, and Cheng (2019)
proposed LoC, a novel financial loan management system built on the permission
blockchain Hyperledger Fabric. This system addressed data privacy and
transparency issues plaguing traditional loan management systems. The
performance evaluations of LoC demonstrated its applicability in real financial
loan settings, confirming the potential of blockchain-based solutions for loan
management.
In recent years, the focus has shifted toward enhancing loan management systems'
security and validation aspects. Otuonye, Ibe, Njoku, and Eze (2022) developed
an innovative framework for integrated loan management incorporating QR Code
enhancement. This framework was designed to improve security and validation in
microfinance banks and other lending institutions, aiming to mitigate fraudulent
activities and ensure compliance with internal and external regulations.
Throughout the history of loan management systems, we have witnessed a

continuous evolution driven by technological advancements, features, and
efficiency. From the offline, computer-based systems of the 1970s to the modern,
blockchain-based, and QR Code-enhanced solutions of today, these systems have
adapted to meet the ever-changing needs of lending companies. As technology
progresses, loan management systems are expected to become even more
sophisticated and capable of addressing new challenges and demands.
In conclusion, the journey of loan management systems from the early days of
Coblos to the current era of blockchain and smart contracts has been marked by

remarkable progress and innovation. With the ongoing advancements in
technology, we can anticipate that the future of loan management systems will be
characterized by even greater levels of automation, security, and efficiency. It
will, in turn, lead to more effective loan management processes, benefiting both
borrowers and lenders in various sectors, including libraries, banks, and other
financial institutions.
Software development Methodology
Agile Methodology
Abrahamsson, Salo, Ronkainen, and Warsta (2017) assert that Agile Methodology
for Software Development emphasizes skill, activity, and talent in motion to
facilitate faster and more adaptive software development processes. This
methodology is particularly relevant for rapidly evolving industries like the
Internet software sector and the burgeoning mobile application environment. It
caters to the business community's demand for lighter-weight processes fostering
adaptability, collaboration, and customer satisfaction.
A recent study by Setiawan and Effendy (2022) determined that the Agile method
is especially well-suited for loan management systems due to its inherent
advantages. By embracing the uncertainty of plans and fostering open
communication among diverse stakeholders, Agile methodology can increase
customer satisfaction through a more responsive approach to their needs. In the
event of a failure, the iterative and adaptive nature of Agile minimizes both
material and immaterial losses. Furthermore, Agile methodology can reduce the
failure ratio concerning non-technical aspects, ultimately contributing to a more
efficient and effective system. The ability to conduct early reviews of software or
systems under development is another advantage of Agile, allowing for
continuous improvement throughout the development process. Consequently,
implementing Agile methodology in loan management systems can result in more
successful and efficient project outcomes.

Waterfall Methodology
Casteren (2017) characterizes the waterfall methodology as a linear and sequential

approach to software development. The process is divided into distinct phases that
must be completed before progressing to the subsequent phase. These phases
commonly encompass requirements gathering, design, implementation, testing,
and maintenance.
Adewale, Aibangbee, Lufadeju, and Maradesa (2014) emphasize the suitability of

the waterfall methodology in developing a loan automation application, which
was chosen due to the clear and well-understood project requirements before the
initiation of design and development. The waterfall methodology follows a
sequential development process, with each stage requiring completion before
initiating the next stage. The stages typically comprise requirements gathering,
system design, implementation, testing, and maintenance, allowing for a
structured and orderly progression through the development lifecycle. This
systematic approach to software development begins with a well-defined,
understood client specification of requirements and moves linearly through to
deployment. Given these characteristics, the waterfall methodology is a fitting
choice for loan management systems, particularly when project requirements are
clearly stated and understandable from the outset.
Rapid Application Development
Rapid Application Development (RAD) Methodology, as defined by Kumar and

Prashanth (2014), is an incremental development model well-suited for projects
with clearly understood requirements, capable of delivering software in
increments within short timeframes and offering scalability. This methodology
adopts a high-speed waterfall model and leverages multiple RAD teams,
employing automated code generation tools for modeling and constructing the
application. However, for large, scalable projects where system requirements
cannot be accurately estimated, constructing the necessary components for RAD
may prove challenging, necessitating increased effort and time for creating stubs

and drivers during unit testing.
Otuonye, Ibe, Njoku, and Eze (2022) highlight that the RAD Methodology is an
appropriate and effective choice for Loan Management with QR Code
Enhancement, as it emphasizes user perspectives and provides the flexibility to
adjust system design according to user demands. By employing a highly engaged
approach, which includes interviewing staff members from selected Microfinance
Banks and key stakeholders in the banking sector, the RAD Methodology
facilitates the development of a tailored and responsive solution for Loan
Management with QR Code Enhancement. This adaptability ensures that the
system can proficiently address its users' specific needs and requirements,
establishing RAD as a fitting and advantageous methodology for this project.
Related Studies and/or Systems
Foreign
Loan Management System for HESFB
Lubega (2020) outlines the existing HESFB system, which primarily relies on
spreadsheet interfaces and communication with administrators. Students submit
hard copies of their tuition bills, while parents receive notifications when
payments are due. In contrast, the Loan Management System for HESFB has been
designed to surpass the limitation of the current system, offering efficiency and
user-friendliness.
Employing the prototype methodology, the implementation considered its

efficiency, carefully evaluating its performance and addressing any identified
issues. This approach incorporated user feedback early in the development
process, ensuring a more effective end product. The Integrated Development
Environment utilized in the system was Wampserver3.1.4, with MySQL queries
used to manage records and SQLite serving as the database management system.
The technology stack employed in the system includes Apache and Perl, PHP, or

Python in the Microsoft Windows operating system (Lubega, 2020).
Innovatively, the proposed system by Lubega (2020) employs an automated

database to maintain up-to-date payment and disbursement records, simplifying
tracking and information retrieval. The project encompasses system analysis and
design for loan detail acquisition, settlement, and payment processing. Moreover,
the system enables the uploading and storing of all required documents for loan
disbursement operations, including soft financial card copies.
Furthermore, Lubega (2020) emphasizes the system's facilitation of group

communication between institutions, chat history preservation, and a central chat
for all administrative messages. The system also offers an online registration
option for prospective participants via current students benefiting from the
program.
Lastly, Figure 1 illustrates the system's primary function, as highlighted by

Lubega (2020), which is generating student loan disbursement forms. This feature
streamlines the loan application process, making it more accessible and user-
friendly for students and administrators.

Figure 1: HESFB Disbursement Form
Foreign
An Innovative Framework for Integrated Loan Management with QR Code

Enhancement
Otuonye, Ibe, Njoku, and Eze (2022) observe that borrowers sometimes attempt
to obtain multiple loans from various microfinance institutions concurrently,
using a single piece of collateral. This practice violates microfinance banking
policy and poses a challenge for detecting the anomalies and dishonest tactics
employed by bank clients, necessitating considerable effort and scrutiny. In
response, the authors introduce the Innovative Framework for Integrated Loan
Management with QR Code Enhancement to prevent multiple loan applications
using a single piece of collateral within the microfinance banking sector and other
lending institutions.

Addressing this pressing issue, the system tackles the current challenges faced by
management in verifying loan eligibility due to the increasing number of
microfinance bank customers seeking personal loans, particularly in the aftermath
of the COVID-19 pandemic. The complexity of fraudulent loan application
documentation, which often attempts to access multiple loans using single
collateral security, poses a significant challenge for management. Consequently,
an integrated loan management system that connects different lending institutions
collaboratively is required to prevent such incidents of fraudulent loan
applications (Otuonye et al., 2022).
Utilizing the Rapid Application Development (RAD) methodology, this system

emphasizes the user perspective and involvement and its capacity to modify
system design in response to user requirements flexibly. The methodology is
suitable for addressing the dynamic nature of the problem at hand (Otuonye et al.,
2022).
Employing PHP server-side scripting, the system was implemented using the PHP
language. The client-side scripts for the web pages were created using JavaScript,
while HTML and CSS were used for content presentation and web application
design. The system’s local host was XAMP, and the system's codes were written
and edited using Visual Studio (Otuonye et al., 2022).
Significantly, for each accepted loan, the central admin manager is granted the
sole right to create a QR code that only the specific consumer may access,
independent of their credit institution. As illustrated in Figure 2, individual
customer accounts can be accessed before, during, and after member banks
distribute loans by utilizing the security code created at the stage of final loan
approval. This innovative approach ensures enhanced security and transparency in
the loan application process (Otuonye et al., 2022).

Figure 2: QR Code Generation Screen
Foreign
Design and Implementation of Loan Management System using ISI Server,

PHP, and MySql
Kamruzzaman (2019) highlights that the Loan Management System streamlines

various aspects of the credit portfolio, from initiating the loan application process
to account closure. This comprehensive system enables clients to conveniently
apply for loans from any location using various devices, including desktop
computers, laptops, tablets, and mobile devices. The loan underwriting process is
efficient and reliable, facilitating swift approval and seamless communication
with clients.
The system, designed and implemented using ISI web Server, PHP, and MySQL
database, efficiently manages the loan portfolios of credit institutions. By
consolidating diverse loan portfolios onto a single platform, the system supports
automating servicing and management processes for credit institutions.
Furthermore, it integrates seamlessly with the branches of financial institutions
(Kamruzzaman, 2019).

Registered users can utilize the system to apply for loans online, view their loan
status, submit queries and complaints, and access pertinent information using
personalized usernames and passwords. Figure 1 illustrates the registration page
for the Loan Management System. In addition, credit institution officers can
effectively monitor loans and track their progress, ensuring streamlined and
transparent management of the credit portfolio (Kamruzzaman, 2019).
Figure 3: Loan Calculator for Loan Management System
Foreign
A Mobile-Based System for Loans Management: A Case of Banque De

Gestion Et De Financement
Loan applicants have traditionally been required to be physically present at the

bank headquarters or one of its branches to obtain a loan and submit all necessary
documentation. Following their application, they may wait several weeks for the
bank management to review and decide on their request (Bizoza, 2022).
In response to this challenge, Bizoza (2022) introduces a Mobile-Based System

for Loan Management that offers substantial benefits, including user-friendliness,
reliability, adaptability, and alignment with BGF Bank's vision and mission.
Utilizing the Agile development methodology, specifically the Scrum framework,
the system was created to enable a sequential process of planning, requirements

analysis, design, construction, and testing. This approach allows for iterative
development and testing, providing opportunities to assess risks, make necessary
adjustments, and facilitate an evolutionary development that meets stakeholders'
needs.
Leveraging a combination of technologies, including Bootstrap for the front end

and Android Studio for the IDE of mobile application development with Java as
its programming language, HTML5, CSS3, Angular JavaScript, and MySQL for
the back end, the Agile modeling methodology served as the foundation for the
system development process. During the development of the system, a laptop and
an Android smartphone was employed as the primary tools. The laptop facilitated
the mobile application's design, coding, and building, while the Android
smartphone was used for testing (Bizoza, 2022).
Crucially, the proposed system by Bizoza (2022) enables users to apply for loans
and upload all required documents without needing in-person visits to bank
offices. Loan applications are accessible and managed by bank staff, who receive
notifications when loan requests are submitted. Customers can review feedback
on their loan requests, create and update personal profiles, and view EMI payment
status. The system also generates reports for bank employees and clients, enabling
users to search for specific records.
As depicted in Figure 5, the system components facilitate user interaction, such as

loan applications, loan status monitoring, EMI payments, and personal
information updates (Bizoza, 2022).

Figure 4: Customer’s Dashboard
Synthesis
This study aims to develop a loan management system for Three Fe's Appliance
Emporium lending company by drawing on related literature and studies. The
analysis of existing literature highlights that manual lending processes are
associated with inefficiencies and errors that can be addressed through a loan
management system. Therefore, the proposed system is crucial for the company
as it will introduce an innovative loan management system that effectively
addresses these challenges.
It is crucial to acknowledge that the proposed Web-based Daily Loan

Management with QR Payment Collection System is not the first of its kind, as
various related studies present existing systems already functioning effectively.
These existing loan management systems share several similarities with the
proposed system.

For instance, the Loan Management System for HESFB proposed by Lubega
(2020) and the proposed system both employ automated databases to maintain up-
to-date payment and disbursement records, thus simplifying tracking and
information retrieval. Although the online registration mentioned by Lubega
(2020) is likely web-based, the proposed system offers online registration options
through its mobile application, allowing for convenient access for users.
Otuonye, Ibe, Njoku, and Eze's (2022) Innovative Framework for Integrated Loan
Management with QR Code Enhancement addresses the challenge of borrowers
applying for multiple loans using a single collateral. This innovative framework
shares a common feature with the proposed system—using QR technology to
enhance the efficiency of loan management processes.
Kamruzzaman's (2019) Design and Implementation of a Loan Management

System using ISI Server, PHP, and MySQL streamline various aspects of the
credit portfolio. While the proposed system does not allow borrowers to apply for
loans using their laptops or desktops, both systems provide a user-friendly loan
underwriting process for swift approval and seamless mobile application
communication. Registered users can apply for loans, view loan status, and access
pertinent information through the mobile application in the proposed system.
Lastly, Bizoza's (2022) Mobile-Based System for Loan Management eliminates

the need for in-person office visits for loan applications and document
submissions, aligning with the proposed system’s goal of providing a more
convenient and efficient loan application process. Both systems allow users to
apply for loans, upload required documents, and receive feedback on their loan
requests via mobile applications without physically visiting offices.
Although the proposed Web-based Daily Loan Management with QR Payment

Collection System shares similarities with existing systems, it is essential to
emphasize that it is not a repetition or replication of existing systems. The
differences between the proposed system and the systems presented in the studies
are significant and tailored to the client's needs, Three Fe's Appliance Emporium.

The Loan Management System for HESFB, as described by Lubega (2020),
primarily focuses on serving students and educational institutions, while the
proposed system is designed for a specific client, Three Fe's Appliance
Emporium. This distinction results in differing system requirements and features.
For example, the HESFB system includes a group communication feature for
institutions and chat history preservation, which is not present in the proposed
system.
Otuonye et al.'s (2022) Innovative Framework for Integrated Loan Management

with QR Code Enhancement is designed to prevent borrowers from applying for
multiple loans using single collateral across various microfinance institutions.
This framework's primary goal is to facilitate collaboration among different
lending institutions to avoid fraudulent loan applications, a feature not included in
the proposed system. The proposed system primarily focuses on managing loan
transactions, QR payment collection, and providing user-friendly mobile
applications for borrowers, collectors, and credit investigators.
Kamruzzaman's (2019) Design and Implementation of a Loan Management

System using ISI Server, PHP, and MySQL allows clients to apply for loans from
any location and device, such as desktop computers, laptops, tablets, and mobile
devices. In contrast, the proposed Web-based Daily Loan Management System
restricts borrowers to applying for loans only through the mobile application, not
offering a web application for borrowers. The proposed system's modules also
cater to the unique requirements of Three Fe's Appliance Emporium and its users.
Bizoza's (2022) Mobile-Based System for Loan Management focuses on

providing a user-friendly, reliable, and adaptable solution for Banque De Gestion
Et De Financement, a different client with distinct needs. Although both systems
utilize mobile applications to streamline the loan application process and
eliminate the need for in-person visits to bank offices, the proposed system
incorporates QR payment collection, a feature not mentioned in Bizoza's study.
After discussing the differences between the existing and proposed systems, it is

essential to delve into the various technologies that will be integrated into the
proposed system to enhance its efficiency, accessibility, and user experience.
The proposed system will incorporate technologies from multiple studies and
literature to optimize its effectiveness. Cloud computing will be included in the
system development, leveraging the transformative potential of web-based
applications to improve the efficiency of financial transactions within loan
management systems. As Mujuzi (2012) highlights, the benefits of cloud
computing—such as real-time updates, remote accessibility, and robust security
features—will enable seamless loan information management for both borrowers
and lenders.
Flexibility and portability are also crucial; therefore, mobile application

technology will be integrated into the loan management system. As Dagba et al.
(2012) emphasize, mobile-based applications are vital in loan management
systems, particularly for small microfinance institutions in underdeveloped
countries. Including a mobile application will increase efficiency and accessibility
while promoting real-time updates, streamlined communication, and informed
decision-making for loan officers.
QR code technology will also be integrated into the system to streamline the
collection process. As Karmawan et al. (2019) highlight, incorporating QR codes
into mobile banking platforms can enhance the user experience in loan
transactions, leading to a more efficient and secure process.
In terms of programming languages, the studies conducted by Prokofyeva and

Boltunova (2017), Kamruzzaman (2019), Lubega (2020), and Otuonye et al.
(2022) consistently emphasize the strengths of PHP. Furthermore, Bizoza (2022)
highlights Java as the best programming language for Android development,
noting its user-friendliness, reliability, and adaptability. Considering these
findings, the proposed system will utilize PHP and Java as programming
languages. PHP will be employed for its accessibility, adaptability, seamless
integration with other software components, and efficient performance. On the

other hand, Java will be used for its suitability and effectiveness in Android
development. By leveraging the strengths of both languages, the proposed system
can achieve a robust and comprehensive solution for loan management.
The Laravel Framework, as highlighted by Setiawan and Effendy (2022), will be

employed in developing the proposed system, ensuring a structured methodology,
extensive features, and robust support for design and development processes.
MySQL, a scalable, flexible, and efficient solution for organizing and managing
complex loan data (Carranto, 2021), will be used as the RDBMS.
The proponents of the proposed system intend to use SMS technology as an

essential part of loan management, drawing on the research findings of Karlan et
al. (2012). Their study emphasizes the significant impact of SMS messages on
repayment rates, particularly when the loan officer's name is mentioned. This
positive effect is even more pronounced for clients with a prior borrowing history
from the bank. The research suggests that SMS messages in loan management
foster feelings of social obligation and reciprocity, highlighting the importance of
personal relationships over closer monitoring. In the proposed system, SMS will
serve as a notification tool for the borrowers, ensuring timely communication and
enhancing its effectiveness in loan management. The system aims to improve
borrower engagement and promote better repayment outcomes by incorporating
SMS technology as a critical element.
Finally, the proposed system will utilize the Agile methodology Setiawan and
Effendy (2022) recommended for more successful and efficient project outcomes.
As Abrahamsson et al. (2017) described, Agile Methodology emphasizes
adaptability and collaboration, making it particularly relevant for rapidly evolving
industries. The inherent advantages of Agile methodology, such as embracing
uncertainty and fostering open communication, make it well-suited for loan
management systems. Agile's iterative and adaptive nature minimizes losses,
reduces the failure ratio, and allows continuous improvement throughout
development. Implementing Agile methodology in loan management systems can

increase customer satisfaction and more efficient project outcomes.

TECHNICAL BACKGROUND
This chapter provides a comprehensive overview of the technology employed in creating

the proposed system. It delves into the technical background of the study, outlining the
minimum hardware and software requirements necessary for the execution, development,
and testing. Furthermore, the chapter covers the peopleware aspect, highlighting the
general characteristics of the individuals involved in the development process, the
network topology, and a schedule of activities that outlines the various tasks associated
with the proposed system.
Overview of Current Technologies to be Used in the System
The proponents will establish a Web-based Loan Management with Mobile QR

Payment Collection System in developing the proposed system. The system will
be constructed using the Laravel framework and PHP 8.2.0 for server-side
scripting, while Composer will be employed to manage PHP dependencies. Visual
Studio Code IDE will be utilized for web application development, providing a
versatile and efficient environment for working with Laravel and PHP. The
mobile application will be developed with the Android Software Development Kit
(SDK) and Java 15.18.0 as the client-server-side scripting language, integrating
the ZXing library for QR code generation and scanning capabilities, using
Android Studio as the primary IDE for mobile app development. The web
application's front end will be developed using modern web technologies such as
HTML5, Alpine.js, and Tailwind CSS, providing a responsive and visually
appealing user interface.
Furthermore, Firebase Cloud Messaging will be implemented to deliver

notification services, keeping users updated on relevant loan and payment
information. Moreover, XAMPP will be used as the local server, and MySQL for
database management. During the deployment of the proposed system, Hostinger
will be utilized as the cloud computing service to ensure efficient performance
and scalability.

.
The Web-based Loan Management with Mobile QR Payment Collection System

will be developed using existing and advanced technologies to deliver a
sophisticated and comprehensive solution. Each technology is crucial in ensuring
the system is efficient, secure, and user-friendly.
The Laravel framework, chosen for the web application's backend development, is
a modern PHP framework offering expressive syntax, a modular architecture, and
a comprehensive ecosystem. Laravel simplifies development, improves
maintainability, and provides numerous built-in functions for everyday tasks, such
as authentication, routing, and caching. It accelerates the development process,
ensures the system is secure and scalable, and ultimately results in a more stable
and reliable application.
Cutting-edge web technologies such as HTML5, Alpine.js, and Tailwind CSS are
employed for front-end development. HTML5 provides the structure and content
for the web application, while Alpine.js, a lightweight JavaScript framework,
allows for the seamless integration of dynamic and interactive elements. Tailwind
CSS, a utility-first CSS framework, styles the user interface, ensuring it is visually
appealing and responsive across different devices and screen sizes.
The Android Software Development Kit (SDK) and Java 15.18.0, utilized for the
mobile application, ensure compatibility with a wide range of Android devices
and grant access to essential tools and libraries required for constructing feature-
rich applications. Android Studio, the official Integrated Development
Environment (IDE) for Android app development, simplifies the process of
designing, coding, and testing Android applications, ultimately reducing
development time and ensuring a polished end product.
Integrating the ZXing library for QR code generation and scanning capabilities is
vital for the mobile application's core functionality, allowing collectors to scan
QR codes for payment collection and borrowers to generate unique codes for loan

repayments.
Firebase Cloud Messaging (FCM) is a powerful messaging solution that enables

real-time notifications, informing users about pertinent loan and payment
information. By utilizing FCM, the system ensures users receive crucial updates
promptly, improving communication and enhancing the overall user experience.
XAMPP provides a comprehensive local server solution, offering a versatile and

widely-used development environment for PHP and MySQL database
management. Using XAMPP, the developers can efficiently test and debug the
application before deploying it to a live server.
The Semaphore API is integrated into the system to generate One-Time

Passwords (OTPs) and send text notifications, ensuring secure and efficient
communication with end-users. This integration is vital for user authentication
and verification, safeguarding sensitive data, and helping to prevent unauthorized
access.
Finally, during the deployment phase, Hostinger, a reputable cloud computing

service, ensures optimal performance and scalability. Hostinger offers various
hosting services and user-friendly tools for managing domains and databases,
providing a robust and reliable infrastructure for the proposed system. This choice
of hosting service is essential for maintaining system performance, availability,
and security, ultimately contributing to a seamless end-user experience.

These tables present a comprehensive list of the minimum hardware requirements
required to deploy the proposed system effectively, ensuring the web and mobile
application runs smoothly. The necessary hardware components and their
respective details are in the table below.
HARDWARE MINIMUM REQUIREMENT
Monitor 18.5 Inches

Resolution: 1280 x 720 pixels or full HD
Keyboard USB Keyboard/ Wireless Keyboard
Mouse USB Mouse/ Wireless Mouse
Processor/CPU Intel Core i3 or AMD equivalent
RAM 4GB
Optional: 8GB
DDR 3: 1,066 or 1,333 MHz
Hard Disk 256GB Hard Disk Drive (HDD)
500GB Hard Disk Drive (HDD)

Optional
Router Stable broadband connection with at

least 10 Mbps download speed or higher
Table 1. Hardware Requirements for Running the Web Application

Screen resolution 720 x 1280 pixels
Camera 5 Mega Pixel or higher
Chipset Qualcomm Snapdragon 410 or MediaTek

MT6737T
Processor CPU Quad-core 1.2 GHz Cortex-A53
RAM 2 GB
Internal memory 16 GB
Wi-Fi Wi-Fi 802.11
Table 2: Hardware Requirements for Running the Mobile Application
Print Method Thermal Line Printing
Bluetooth Version 4.0
Interface Power Jack, Mini USB
Battery 1500mAh Lithium Battery
Table 3: Hardware Requirements for Running Wireless Portable Receipt

Printer
These tables present a comprehensive list of the minimum software requirements

required to deploy the proposed system effectively, ensuring the web and mobile
application runs smoothly. The necessary software components and their
respective details are in the table below.
SOFTWARE MINIMUM REQUIREMENT

Operating System Windows 10
Optional: Windows 11
Web Browser Chrome 112.0.5615.49,

Microsoft Edge 112.0.1722.34
Table 4: Software Requirements for Running the Web Application

Operating System Android 7 or above
Network 4G
At least 10 Mbps
Table 5: Software Requirements for Running the Mobile Application

Barcode Type UPC - A/E, EAN - 13/8, CODE39/93/128,
TIF, CODABAR; 2D: QR code, PDF417
Table 6: Software Requirements for Running the Wireless Portable Receipt

Printer

This figure describes the general factors of people involved in the proposed
system. The illustration also includes the roles and responsibilities of the person
concerned, shown below.
Figure 5. Peopleware
Administrator – The Administrator manages the web application and oversees

various aspects of the system, such as loans, borrowers, repayments, collectors,
and generating reports. They ensure the system runs smoothly and efficiently by
monitoring data and performance.
Auditor – The auditor manages the web application and oversees various aspects
of the system, such as loan applications, loans, borrowers, repayments, and
approval. They ensure the system runs smoothly and efficiently by monitoring
data and performance.
Collector – The Collector uses the mobile application to record the repayment
information of borrowers. They are responsible for collecting repayments on time,
maintaining an accurate record of transactions, and reporting any issues to the
Administrator.
Borrower – The Borrower interacts with the mobile application to apply for
loans, view repayment records, and access loan information. They are responsible
for providing accurate information during the application process and making
timely repayments per the loan agreement.
Credit Investigator – The Credit Investigator utilizes the mobile application to

review and approve credit investigation loan applications. They assess the
borrower's creditworthiness, ensuring that the lending institution minimizes risk
while providing loans to eligible individuals.
Researcher - The researcher gathers information and conducts investigations

using credible sources, such as scholarly articles, surveys, questionnaires, and
reliable online sources, to achieve the study's objectives. Their efforts ensure that
the study is based on trustworthy and verifiable information.
Developer – The developer is responsible for creating, designing, and

implementing the proposed system. Additionally, they oversee the maintenance of
the system and make necessary improvements in preparation for future updates.

This figure provides an overview of the network design of how the proposed Web-based
Loan Management with Mobile QR Payment Collection System works when deployed.
Figure 6. Network Design
The figure above depicts the proposed Web-based Loan Management network
design with Mobile QR Payment Collection System for Three Fe’s Appliance

Emporium. The system's loan management component will be hosted on a web
server deployed on a Hostinger web server. At the same time, its data will be
securely stored in a database server such as MySQL Database to ensure efficient
and reliable data management. Access to the web application will be through the
internet, connecting a computer to a router device with an internet connection. It
will enable administrators like lenders and auditors to access the web application
system and manage loan cycles through a cloud server. It ensures efficient and
secure access, management, and real-time data exchange for daily loan
operations. The mobile application, which can be accessed through the internet
using wireless connections such as Wi-Fi and Mobile Data, will provide
borrowers access to loan information such as repayment records and loan details,
ensuring accurate and up-to-date records. Credit investigators and collectors can
also use the mobile application for efficient management of loan collections, such
as recording the daily payments of borrowers and credit investigation to verify
loan applications by investigating and verifying their sources of income and
identity. They can also approve and revoke loan applications based on credit
investigation.
Calendar of Activities
Methodology
The proponents have opted for the Agile Model in developing the proposed
system, as it offers adaptability and flexibility throughout the project. Agile is an
ideal choice for this endeavor due to its emphasis on iterative and incremental
processes, which enable the proponents to construct the system's features and
functions progressively without waiting to complete each part. The iterative
aspect of Agile guarantees that the code for each feature is designed, developed,
and tested cyclically until it is prepared for deployment. Alongside the iterative
approach, the proponents will utilize an incremental strategy, dividing the system
into separate modules to be designed, built, and tested independently. This
technique allows the proponent to concentrate on individual modules and proceed

to the next one only after successful completion. Agile methodology promotes
continuous validation and enhancement of the system, ensuring ongoing
collaboration with stakeholders to deliver high-quality outcomes at every stage.
This approach allows the proponents to adjust rapidly to evolving requirements
without adversely affecting the release date. In alignment with the Agile model,
the development process will commence with planning the proposed system and
performing a requirements analysis to determine all essential components for its
development. Following the planning and identification of required elements, the
system will be designed and developed in distinct modules, emphasizing each
module's unique features and functions. Finally, the proposed system will be
subjected to unit testing to detect and rectify errors. The outlined activities and
objectives embody the iterative phases of the Agile methodology, providing a
well-organized and adaptable framework for developing the proposed system.
Figure 7. Illustration of Agile Methodology
Activity Name: Project Planning and Initiation

Objectives of the Activity:
Define the project context and purpose of the study.
a. Identify the system's functionalities, objectives, scope, and limitations for

the study.
b. Determine the system requirements and necessary resources for the study.
c. Develop a timeline of activities for the project.
Description:
In this activity, the proponents interviewed Three Fe's Appliance Emporium
company to understand their problems and gain insights that would help define
the project's context and purpose. Specific objectives for the proposed system
were developed to provide a solution, including back-end and front-end modules
and report generation. The scope and limitations of the study were also
established. To ensure that the proposed system meets the client's needs, system
requirements for hardware and software were identified. A timeline of activities
was created to manage the development process effectively. By defining the
project context, objectives, scope, and system requirements and establishing a
timeline, the proponents could ensure a well-planned, efficient development
process that addresses the client's needs.
Persons Involved: Proponents, Stakeholders, and Project Adviser
Resources: Request Letter, Questionnaire, Mobile Phone, Notes, Laptop,
Microsoft Word, Browser, and Internet Connection
Timeline: Week 1-12
Activity Name: Requirements Analysis

a. To describe the current technical situation
b. To create Data Flow Diagrams (DFDs), including both Context Diagrams,
DFD Level 0 and DFD Level 1, will be designed using the Gane & Sarson
Model.
Description:
The proponents will examine all the data obtained from interviews and discuss the
current technical situation of the Three Fe's Appliance Emporium's existing
processes. Then, the proponent will use the Gane & Sarson Model to create Data
Flow Diagrams (DFDs) that demonstrate the proposed system. This includes

creating a Context Diagram that shows the overall system as a single process,
illustrating the relationships between the system and external entities. Following
the Context Diagram, the proponents will create a DFD Level 0 diagram, which
represents an overview of the system, depicting its main processes and how they
interact. Finally, they will make a Level 1 DFD, representing the main
subprocesses and more detailed data flows within the system. To develop
comprehensive diagrams of the system components, the proponents will utilize
tools such as Lucid Chart and Draw.IO, which will include visual representations
of the Context Diagram, DFD Level 0, and DFD Level 1.
Persons Involved: Proponents, and Stakeholders
Resources: Laptop, Browser, Internet Connection, Microsoft Word, Lucid Chart,
and Draw.IO
Timeline: Week 13
Activity Name: Requirements Documentation

a. To identify and formulate functional requirements by developing a low-
level prototype using Storyboard.
b. Identify and formulate non-functional requirements based on functional,
operational, performance, security, and cultural and political requirements.
Description:
In this activity, the proponent will work on creating comprehensive Requirements
Documentation for the proposed system. The main objectives of this activity are
to identify and formulate functional and non-functional requirements. To achieve
this, a low-level prototype will be developed using Storyboard, allowing the
proponent and stakeholders to visualize the system's features and user interactions
effectively. The functional requirements will focus on the system's capabilities,
inputs, and expected outputs. In contrast, the non-functional requirements will
address system performance, security, operational considerations, and cultural and
political factors. The persons involved in this activity include the proponent and
stakeholders, who will collaborate to ensure that all requirements are accurately

captured and documented. To carry out this activity, the proponent will utilize a
laptop, browser, internet connection, Microsoft Word, Lucid Chart, and Draw.IO
to create, refine, and document the requirements.
and Draw.IO
Timeline: Week 14-15
Activity Name: Design of Conceptual Framework and System Architecture

a. To create a Conceptual Framework model utilizing the Input-Process-
Output (IPO) Model.
b. To develop a System Architecture Model using the Three-Tier
Architecture Model.
Description:
The proponents will utilize the Input-Process-Output Model (IPO Model) to
create the Conceptual Framework Model, which will help organize and define the
proposed system's inputs, processes, and outputs following the client's
requirements. Additionally, the proponents will develop the System Architecture
Model using the Three-Tier Architecture Model. This model consists of a
presentation, application, and database tier, establishing a clear and structured
system design and ensuring efficient communication and data flow between the
system components.
and Draw.IO
Timeline: Week 16
Activity Name: System Design:

a. To create a detailed data model using Use Case Diagrams and Activity

Diagrams.
b. To design a comprehensive system architecture that includes the necessary
components and their relationships.
c. Establish the system's interface design, including user input and output
requirements.
Description:
The System Design activity involves creating a detailed data model using Use
Case and Activity Diagrams. The Use Case Diagrams will identify the system's
functionality, actors, and interactions. The Activity Diagrams will define the
system's workflow and illustrate how users interact with the system. The activity
also encompasses designing a comprehensive system architecture that includes
the necessary components and their relationships, ensuring the system's efficiency
and reliability. Additionally, the system's interface design, including user input
and output requirements, will be established during this activity. The interface
design will be developed based on user requirements and preferences to ensure an
intuitive and user-friendly experience. This activity lays the foundation for the
system's development, ensuring it meets the client's needs and expectations.
Persons Involved: Proponents and Stakeholders
and Draw.IO
Timeline: Week 17 – 18
Activity Name: Database Design:

a. To design the Conceptual Database Model using Crow's Foot Notation.
b. Normalize the conceptual database tables from UNF to the 3rd Normal
Form.
c. To create a Logical Database Model.
d. To design the Physical Database Model (Schema).
e. To develop a Data Dictionary.
Description:

The proponents will design the conceptual database model using Crow's Foot
Notation to illustrate the relationships between entities in the Web-based Daily
Loan Management System for Three Fe's Appliance Emporium, effectively
representing the data processing. They will carry out database normalization from
Unnormalized Form (UNF) to Third Normal Form (3NF) to ensure the entities are
well-organized in the database and to reduce redundancy. The activity also
involves creating a logical database model for the proposed system, encompassing
all entities and their attributes with established relationships. In addition, the
proponents will design the physical database model (schema) to organize data
within a relational database, representing relational data objects and their
relationships. Lastly, they will develop a data dictionary, providing detailed
information about the contents of the database tables in the proposed system.
and Draw.IO
Timeline: Week 18-19
Activity Name: Software Development Iteration 1

a. To develop the Login Module for the Web Application.
b. To develop the Login Module for the Collector’s Mobile Application.
c. To develop the User Management Module for the Web Application.
d. To develop the User Management Module for Collector’s Mobile
Application.
e. To implement the Database in MySQL database
f. To conduct unit testing for the Login and User Management Module for
the Web Application.
g. To conduct unit testing for the Login and User Management Mobile
Module for Collector’s Mobile Application
Description:

During this phase of software development, the proponent will primarily focus on
creating and refining the User Management Module for both the web application
and the mobile application designed specifically for collectors. This
comprehensive module will encompass user registration, authentication, and
profile management tasks to deliver a smooth and secure user experience.
Additionally, the proponent will develop the Login module for both the Web
Application and the Collector's Mobile Application. Furthermore, the proponent
will implement the MySQL database, ensuring efficient data storage and retrieval.
After successfully implementing and developing these modules, rigorous unit
testing will be conducted to identify and address any issues, bugs, or potential
areas of improvement. This meticulous testing process will guarantee the
reliability and functionality of the User Management and Login Modules within
both the web and mobile applications.
Resources: Laptop, Mobile Phone, Browser, Internet Connection, Browser,
Visual Studio Code (IDE), XAMPP, Android Studio (IDE)
Timeline: Week 20

a. To develop the Loan Application Module for the Web Application.
b. To develop the Collection Module for Collector’s Mobile Application.
c. To conduct unit testing for the Loan Application Module of the Web
Application.
d. To conduct unit testing for the Collection Module of Collector’s Mobile
Application.
Description: In this stage of software development, the focus will be on creating

and refining the Loan Application Module for the web application and the
Collection Module for the collector's mobile application. The Loan Application
Module will handle tasks related to loan application processing, such as
submitting applications, evaluating eligibility, and managing loan approvals. The

Collection Module, on the other hand, will facilitate efficient and accurate
collection of payments from borrowers through the mobile application. After
completing the development of these modules, the proponent will conduct unit
testing to identify and resolve any issues or bugs send implement potential
improvements. This process will ensure that the Loan Application and Collection
Modules are reliable and functional in web and mobile applications.
Visual Studio Code (IDE), XAMPP, Android Studio (IDE).
Timeline: Week 21

a. To develop the Loan Approval Module for the Web Application.
b. To develop the Dashboard Module for Collector’s Mobile Application.
c. To conduct the unit testing for the Loan Approval Module for the Web
Application.
d. To conduct the unit testing for the Dashboard Module for Collector’s
Mobile Application.
Description: In this phase of software development, the proponent will focus on

creating and refining the Loan Approval Module for the web application and the
Dashboard Module for the collector's mobile application. The Loan Approval
Module will handle the loan application review and approval process, allowing
administrators to assess applications and make informed decisions. The
Dashboard Module for the mobile application will give collectors an overview of
their assigned loans, payment statuses, and other relevant information, enabling
them to manage their tasks more efficiently. After developing these modules, the
proponent will conduct unit testing to identify and resolve any issues, bugs, or
potential improvements. This process will ensure the reliability and functionality
of the Loan Approval and Dashboard Modules in both the web and mobile
applications.

Timeline: Week 22

a. To develop the Loan Disbursement Module for the Web Application.
b. To develop the Notification Module for Collector’s Mobile Application.
c. To conduct the unit testing for the Loan Disbursement Module for the
Web Application.
d. To conduct the unit testing for the Notification Module for Collector’s
Mobile Application.
Description: In this stage of software development, the proponent will focus on

creating and refining the Loan Disbursement Module for the web application and
the Notification Module for the collector's mobile application. The Loan
Disbursement Module will release approved loan funds to borrowers, ensuring
accurate and timely disbursements. The Notification Module for the mobile
application will manage notifications and alerts related to loan and payment
updates, keeping collectors informed and up-to-date on their tasks. After
completing the development of these modules, the proponent will conduct unit
testing to identify and resolve any issues or bugs and implement potential
improvements. This process will ensure that the Loan Disbursement and
Notification Modules are reliable and functional in web and mobile applications.
Timeline: Week 23


a. To develop the Collection Module for the Web Application.
b. To develop the Login Module for the Credit Investigator’s Mobile
Application.
c. To develop the User Management Module for the Credit Investigator’s
Mobile Application.
d. To conduct the unit testing for the Collection Module for the Web
Application.
e. To conduct the unit testing for the User Management Module for the
Credit Investigator’s Mobile Application.
Description:
In this phase of software development, the proponent will primarily focus on
creating and refining the Login Module for the Credit Investigator's Mobile
Application. This module will enable authorized credit investigators to securely
log into the application, ensuring the privacy and confidentiality of sensitive data.
Following the development of the Login Module, the proponent will proceed to
create and refine the User Management Module for the Credit Investigator's
Mobile Application. This module will be responsible for updating account details
and managing user profiles, allowing credit investigators to maintain and modify
their personal information. Additionally, the proponent will develop the
Collection Module for the web application, facilitating efficient tracking and
management of loan payments. It will ensure accurate and up-to-date records,
allowing seamless monitoring of repayment activities. After the development of
these modules, rigorous unit testing will be conducted to identify and resolve any
issues, bugs, or potential improvements. This comprehensive testing process will
ensure the reliability and functionality of the Login Module, User Management
Module, and Collection Module in web and mobile applications.
Timeline: Week 24

a. To develop the Borrower Information Module for the Web Application.
b. To develop the Loan Application Review Module for the Credit
Investigator’s Mobile Application.
c. To conduct the unit testing for the Borrower Information Module for the
Web Application.
d. To conduct the unit testing for the Loan Application Review Module for
the Credit Investigator’s Mobile Application.

creating and refining the Borrower Information Module for the web application
and the Loan Application Review Module for the Credit Investigator's Mobile
Application. The Borrower Information Module for the web application will
manage borrower data, ensuring secure and organized information storage. The
Loan Application Review Module for the Credit Investigator's Mobile
Application will facilitate credit investigators' assessment and review of loan
applications, enabling them to make informed decisions about applicants'
creditworthiness. After completing the development of these modules, the
proponent will conduct unit testing to identify and resolve any issues or bugs and
implement potential improvements. This process will ensure that the Borrower
Information and Loan Application Review Modules are reliable and functional in
web and mobile applications.
Timeline: Week 25

a. To develop the Loan Information Module for the Web Application.
b. To develop the Notification Module for the Credit Investigator’s Mobile

Application.
c. To conduct the unit testing for the Loan Information Module for the Web
Application.
d. To conduct the unit testing for the Notification Module for the Credit
Investigator’s Mobile Application.
Description: In this phase of software development, the proponent will focus on

creating and refining the Loan Information Module for the web application and
the Notification Module for the Credit Investigator's Mobile Application. The
Loan Information Module for the web application will manage loan data,
providing a centralized and organized repository for loan details, statuses, and
payment records. The Notification Module for the Credit Investigator's Mobile
Application will handle alerts and notifications related to loan applications and
borrower updates, keeping credit investigators informed and up-to-date on their
tasks. After developing these modules, the proponent will conduct unit testing to
identify and resolve any issues, bugs, or potential improvements. This process
will ensure the reliability and functionality of the Loan Information and
Notification Modules in both the web and mobile applications.
Timeline: Week 26

a. To develop the Repayment Module for the Web Application.
b. To develop the Dashboard Module for the Credit Investigator's Mobile
Application.
c. To conduct the unit testing for the Repayment Module for the Web
Application.
d. To conduct the unit testing for the Dashboard Module for the Credit
Investigator's Mobile Application.

creating and refining the Repayment Module for the web application and the
Dashboard Module for the Credit Investigator's Mobile Application. The
Repayment Module for the web application will manage loan repayments,
tracking payment schedules, amounts, and statuses, ensuring timely and accurate
recording of repayments. The Dashboard Module for the Credit Investigator's
Mobile Application will provide an overview of key metrics and data related to
loan applications, borrower statuses, and repayments, allowing credit
investigators to access and monitor relevant information. After completing the
development of these modules, the proponent will conduct unit testing to identify
and resolve any issues or bugs and implement potential improvements. This
process will ensure that the Repayment and Dashboard Modules are reliable and
functional in web and mobile applications.
Timeline: Week 27

a. To develop the Collector Information Module for the Web Application.
b. To develop the Registration Module for the Borrower's Mobile
Application.
c. To develop the Login Module for the Borrower's Mobile Application.
d. To develop the User Management Module for the Borrower's Mobile
Application.
e. To conduct the unit testing for the Collector Information Module for the
Web Application.
f. Conduct unit testing for the User Management Module for the Borrower's
Mobile Application.
Description: In this phase of software development, the proponent will primarily

focus on creating and refining four essential modules: the Collector Information
Module for the web application, Registration, Login, and the User Management
Module for the Borrower's Mobile Application. The Collector Information
Module for the web application will serve as a central hub for managing and
organizing collector profiles, assignments, and performance data. It will enable
efficient monitoring and administration of collector activities, providing
administrators with valuable insights and control over the collection process.
Simultaneously, the proponent will develop the Registration Module for the
Borrower's Mobile Application. This module will facilitate the smooth and
streamlined registration process for new borrowers, allowing them to create
accounts and provide the necessary information.
Furthermore, the Login Module for the Borrower's Mobile Application will be
developed to ensure secure access for authorized borrowers. This module will
enable borrowers to securely log into their accounts, protecting their personal and
financial information. In addition, the proponent will develop the User
Management Module for the Borrower's Mobile Application. This module will
encompass user registration, authentication, and profile management tasks,
ensuring a secure and user-friendly experience for borrowers. It will empower
borrowers to conveniently register, access their accounts, and manage their
profiles within the mobile application. After the development of these modules,
thorough unit testing will be conducted to identify and resolve any issues, bugs, or
potential improvements. This meticulous testing process ensures the reliability
and functionality of the Collector Information, User Management, Registration,
and Login Modules in web and mobile applications.
Timeline: Week 28


a. To develop the Report Management Module for the Web Application.
b. To develop the Loan Application Module for the Borrower's Mobile
Application.
c. To conduct the unit testing for the Report Management Module for the
Web Application.
d. To conduct the unit testing for the Loan Application Module for the
Borrower's Mobile Application.
Description: In this stage of software development, the proponent will

concentrate on creating and refining the Report Management Module for the web
application and the Loan Application Module for the Borrower's Mobile
Application. The Report Management Module for the web application will handle
the generation, storage, and retrieval of various reports, such as loan status,
collection, and repayment reports, providing valuable insights and analytics for
decision-making. The Loan Application Module for the Borrower's Mobile
Application will facilitate the submission, tracking, and management of loan
applications, allowing borrowers to apply for loans and monitor their application
status easily. After completing the development of these modules, the proponent
will conduct unit testing to identify and resolve any issues, bugs, or potential
improvements, ensuring the reliability and functionality of the Report
Management and Loan Application Modules in both the web and mobile
applications.
Timeline: Week 29

a. To develop the Dashboard Module for the Web Application.
b. To develop the Repayment History Module for the Borrower's Mobile
Application.

c. To conduct the unit testing for the Dashboard Module for the Web
Application.
d. To conduct the unit testing for the Repayment History Module for the

creating and refining the Dashboard Module for the web application and the
Repayment History Module for the Borrower's Mobile Application. The
Dashboard Module for the web application will provide a comprehensive
overview of key metrics and data related to loan applications, borrower statuses,
and repayments, allowing administrators to access and monitor relevant
information for efficient management. The Repayment History Module for the
Borrower's Mobile Application will enable borrowers to view and track their
repayment history, ensuring transparency and awareness of their loan status. After
developing these modules, the proponent will conduct unit testing to identify and
resolve any issues, bugs, or potential improvements, ensuring the reliability and
functionality of the Dashboard and Repayment History Modules in both the web
and mobile applications.
Timeline: Week 30

a. To develop the Repayment History Module for the Borrower's Mobile
Application.
b. To develop the Notification Module for the Borrower's Mobile
Application.
c. To develop the Dashboard Module for the Borrower's Mobile Application.
d. To conduct the unit testing for the Repayment History Module for the

e. To conduct the unit testing for the Notification Module for the Borrower's
Mobile Application.
f. To conduct the unit testing for the Repayment History Module for the
Description: In this final stage of mobile application development for borrowers,

the proponent will focus on creating and refining the Repayment History,
Notification, and Dashboard Modules for the Borrower's Mobile Application. The
Repayment History Module will allow borrowers to view their repayment
schedules, completed payments, and outstanding balances, ensuring they have up-
to-date information on their loan status. The Notification Module will provide
borrowers real-time updates, reminders, and alerts related to their loans,
repayments, and relevant changes. The Dashboard Module will present an
overview of the borrower's loan information, repayment progress, and other
essential data in a user-friendly and accessible manner.
After completing the development of these modules, the proponent will conduct
unit testing to identify and resolve any issues, bugs, or potential improvements,
ensuring the reliability and functionality of the Repayment History, Notification,
and Dashboard Modules in the Borrower's Mobile Application.
XAMPP, Android Studio (IDE)
Timeline: Week 31

a. To host the Web-based Daily Loan Management System in Hostinger.
Description:
In this activity, the proponents will focus on hosting the Web-based Daily Loan
Management System on Hostinger, a popular web hosting platform. Hosting the
web application ensures its accessibility to users via the internet, enabling

efficient management of loan processes for Three Fe's Appliance Emporium. The
proponents will begin by preparing the Web-based Daily Loan Management
System for deployment, ensuring that all necessary files, configurations, and
dependencies are in place. Next, they will create an account on Hostinger and
select an appropriate hosting plan that meets the requirements of the web
application in terms of storage, bandwidth, and performance. Once the hosting
plan is set up, the proponents will upload the web application files to the
Hostinger server and configure the domain name and SSL certificate to ensure
secure access to the application. They will also configure the database connection
to enable seamless communication between the web application and the hosted
MySQL database. Throughout this process, the proponents will work closely with
the Hostinger support proponent to address technical issues and ensure a smooth
deployment. Upon successfully hosting the Web-based Daily Loan Management
System, it will be accessible to users via the Internet, facilitating streamlined loan
management for Three Fe's Appliance Emporium.
Visual Studio Code (IDE), XAMPP, Android Studio (IDE), Hostinger.
Timeline: Week 32
Activity Name: Alpha Testing

a. To perform black box unit testing for evaluating the system.
b. To carry out system validation with a chosen group of participants.
Description:
In this activity, the proponents will conduct Alpha Testing to evaluate the
functionality, usability, and overall performance of the Web-based Daily Loan
Management with a Mobile QR Payment Collection System. This testing phase
involves performing black box unit testing, which assesses the system without
focusing on its internal structures or implementation. Additionally, the proponents
will validate the system with a selected group of participants, including

stakeholders, to gather valuable feedback and identify potential issues that may
require further refinement. This comprehensive testing process is essential to
ensure the system meets the desired specifications and performs as expected
before moving on to the next development and deployment stages.
Visual Studio Code (IDE), XAMPP, Android Studio (IDE), Hostinger
Timeline: Week 33

Gantt Chart of Activities
MONTH
FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER
ACTIVITY
Planning & Initiation
Requirement Analysis
Requirements Documents
Design of Conceptual Framework
and System Architecture
System Design
Database Design
Software Development 1
Design
Coding
Unit Testing
Design
Coding
Unit Testing
Design
Coding
Unit Testing
Design
Coding
Unit Testing

Design
Coding
Unit Testing
Design
Coding
Unit Testing
Design
Coding
Unit Testing
Design
Coding
Unit Testing
Design
Coding
Unit Testing
Design
Coding
Unit Testing
Design
Coding
Unit Testing

Design
Coding
Unit Testing
Software Development Iteration 13
Alpha Testing

Resources
Hardware
The table below outlines the minimum hardware requirements for developing and
testing the proposed system.
HARDWARE MINIMUM REQUIREMENTS
Processor MD Ryzen 3 2200U with Radeon Vega

Mobile Gfx (4 CPUs), ~2.5GHz
RAM 8 GB DDR4
Storage 238 GB SSD
Graphics AMD Radeon(TM) Vega 3 Graphics
Display Resolution 1366 x 768 pixels
Network Ethernet or Wi-Fi adapter for internet

connectivity
Monitor Generic PnP Monitor
Table 7: Hardware Requirements for Developing and Testing the Web

Application of Web-based Daily Loan Management and QR Payment
Collection System
Screen resolution 720 x 1280 pixels
Camera 5 Mega Pixel or higher
Chipset Qualcomm Snapdragon 410 or MediaTek

MT6737T
Processor CPU Quad-core 1.2 GHz Cortex-A53

RAM 2 GB
Internal memory 16 GB
Wi-Fi Wi-Fi 802.11
Table 8: Hardware Requirements for Developing and Testing the Mobile

Collection System
Print Method Thermal Line Printing
Bluetooth Version 4.0
Interface Power Jack, Mini USB
Battery 1500mAh Lithium Battery
Table 9: Hardware Requirements for Developing and Testing the Wireless

Portable Receipt Printer of Web-based Daily Loan Management and QR
Payment Collection System
The table below outlines the minimum software requirements for developing and
testing the proposed system.
SOFTWARE MINIMUM REQUIREMENTS
Operating System Windows 10
Browser Chrome 112.0.5615.49,

Microsoft Edge 112.0.1722.34

Database MySQL Version 15.1
XAMPP V3.3.0
Apache Version 2.4.54
MySQL Version 15.1

Visual Studio Code Version 1.73.0
Android Studio Chipmunk 2021.2.1 Patch 2
Web framework Laravel
Front-end development stack HTML5, Alpine.js, and Tailwind CSS
API for SMS Semaphore
Notification Service Firebase Cloud Messaging
QR Code Library ZXing Library
Web Hosting Hostinger
Table 10: Software Requirements for Developing and Testing the Web
Collection System

Operating System Android 7 or above
Network 4G
Table 11: Software Requirements for Developing and Testing the Mobile
Collection System

Barcode Type UPC - A/E, EAN - 13/8, CODE39/93/128,
TIF, CODABAR; 2D: QR code, PDF417
Table 12: Software Requirements for Developing and Testing the Wireless
Portable Receipt Printer of Web-based Daily Loan Management and QR
Payment Collection System

Appendix
Approval Letter

Daily Collection Report (DCR)

Ledger

Promissory Note

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Computer Science. https://doi.org/10.1007/978-3-030-05764-0_3

Curriculum Vitae of
Mhing Jhang T. Ang
Antipolo Street, Brgy. Zone 2, Koroandal City, South Cotabato
angm408@gmail.com
09122740427
EDUCATIONAL BACKGROUND
Level Inclusive Dates Name of school/ Institution
Tertiary STI College of Koronadal
Vocational/Technical
High School Koronadal National Comprehensive High
2014-2018/ 2018- School
2020
Elementary 2007-2013 Marbel 1 Central Elementary School
PROFESSIONAL OR VOLUNTEER EXPERIENCE

Nature of Experience/ Name and Address of Company or
Inclusive Dates
Job Title Organization
month year
month year
month year
month year
Listed in reverse chronological order (most recent first).
AFFILIATIONS
Inclusive Dates Name of Organization Position
2019 KNCHS SSG Representative
2022 Rotaract Club of STI Secretary
2019 Barkada Kontra Droga President
2022 STI SSG Vice President
SKILLS
SKILLS Level of Competency Date Acquired
Programming Intermediate 2021
Database Management Intermediate 2021
month year
TRAININGS, SEMINARS, OR WORKSHOPS ATTENDED

Inclusive Dates Title of Training, Seminar, or Workshop
2020 1st South Cotabato Youth Summit
2020 10th Red Cross Youth Camp
2019 2018 Economic and Financial Literacy Week (EFLW) Forum
2020 Barkada Kontra Droga Program
Curriculum Vitae of
Jay Mhari V. Maglinao
Purok Waling-Waling Brgy Zone II, Koronadal City, South Cotabato
Jaymhari300@gmail.com
09500019786
High School Koronadal National Comprehensive High
2014-2018/ School
2018-2020
Elementary 2007-2013 Osita Central Elementary School

Inclusive Dates
month year
month year
month year
month year
AFFILIATIONS
month year
month year
month year
month year
SKILLS
month year
month year
month year

month year
month year
month year
month year
Curriculum Vitae of
John Paul N. Alair
092 M.Roxas Street, Poblacion Norala, South Cotabato
goldhart0@gmail.com
09153782368
High School 2014-2018 Norala National High School
Elementary 2008-2014 Norala Central Elementary School

Inclusive Dates
month year
month year
month year
month year
AFFILIATIONS
month year
month year
month year
month year
SKILLS
month year
month year
month year


month year
month year
month year
month year
Curriculum Vitae of
KENNETH LOUIS S. DEOCAMPO
514 Gomez Street, Zone 1, Surallah, South Cotabato
kldeocampo@gmail.com
09391717645
High School 2014-2018 Notre Dame of Surallah
Elementary 2008-2014 Surallah Central Elementary School

Inclusive Dates
month year
month year
month year
month year
AFFILIATIONS
month year
month year
month year
month year
SKILLS
month year
month year
month year

month year
month year
month year
month year
Transcript of the Inteview
First Interview
Interviewer: Magkuha sana kami ng data sa company niyo para magamit namin sa aming
project, pwede po?
Translation: : Magkuha sana kami ng data sa company niyo para magamit namin sa
aming project, pwede po?
Client: tapos?
Translation: Then?
Interviewer: Magpa sign lang po sana kami ma’am if approved po kayo na mag conduct
kami ng interview and mag ask po ng question regarding po sa process ng business nyo
para ma integrate po namin dito sa project namin.
Translation: We would like to request for a sign, if you approve, for us to conduct an
interview and ask questions about your business process, so we can integrate it into our
project.
Client: Diin ko mag sign?

Translation: Where do I sign?
Interviewer: Dito lang po mam, um, paki lagay lang po yung name then sign sa itaas.
Translation: Just here, ma'am/sir. Please put your name and signature at the top.
Client: Te, okay lang iya sa anak ko pangalan?

Translation: is it okay if I use it as a name for my child?

Interviewer: Okay lang po.
Translation: Okay, it's fine.
Client: Ay, sa taas?

Translation: Oh, at the top?
Interviewer: Yes, po.

Translation: Yes.
Interviewer: Thank you po. Um, may mga konting question lang po dito para sa, para ma
understand po namin yung process po ng business nyo po. So, um Paano po ba like a, sa
first question po, what is the typical loan cycle process that a borrower when applying for
a loan with your company. Like ano po yung mga step by step process na like para maka
apply po ang borrower ng sa loan.
Translation: Thank you. Just a few questions to help us understand the loan cycle process
of your business. What are the step-by-step processes for borrowers who want to apply
for a loan from your company?
Client: Promissory note, ay una una mag fill up sang ano sang form halin sa company
Amuna sya, tapos pag fill up i Ci pa sya kung pasado, kung maka, depende sa sabot nila
kung maka ba niya bayaran ang adlaw adlaw nya na daily or ano, pagkatapos, nang
kailangan adlaw adlaw gid sya mag bayad kung halimbawa sa 1 thousand nya nga loan ,
20 ang daily nya, ti dapat maka bayad gid sya sa adlaw nya daily para nga ma sustain ang
60 days na ano, 60 days na pag rolling sang kwarta. Pero kung hindi sya maka bayad,
kailangan pagkasunod na adlaw dapat doblehon nya kay kung hindi nya pag i doble kung
baga tong unta na kwarta nga ato dapat ma rolling pa to sa iban na mga customer naman
mapundo sya, kung baga hindi sya maka hulag. Amuna sya ang kuan.
Translation: First, they need to fill out the company's form for a promissory note. Then,
we'll assess whether they're eligible for the loan. Depending on their agreement, they

need to pay daily to sustain the loan for 60 days. If they can't pay, the amount will be
doubled the next day until it's paid.
Interviewer: So pag ka um, Sa collection nyo naman po? Um, Ano po yung process nyo
sa pag collect ng repayment.
Translation: How about the collection of repayments? What's your process for collecting
payments?
Client: Adlaw adlaw, Oo, Ti kay dapat 10 % gid na sya abi sa ano sa isa ka bulan dapat
may ara kagid makuha nga 105 kag gin pautang mo, kay yung hindi ka makakuha sang
10% malugi ang negosyo.
Translation: We collect daily, and they need to pay 10% every month. If we can't collect
10%, our business will suffer losses.
interviewer: Ano po yung mga way nyo na pag collect, um, yung parang papel.
Translation: What are the ways you collect payment, like paper?
Client: Oo, may ara na passbook na taga collect lista didto pila amount tapos pirmahan
para nga at least kung halimbawa mag reklamo man nga customer at least may ara sya na
hawid nga passbook nga, ay diri mam o, wala, wala man ko diri naka ano, kung utangan
sang customer nga halimbawa naka bayad sya pero ang pamatuod didto na nga wala
pirma ibig sabihin gin butang butang nya lang to kay wala pirma sang collector, na
amuna sya.
Translation: Yes, we have a passbook for the collector to list the amount collected and the
customer signs it, so that if the customer complains, at least they have a passbook to hold
onto. If there's no passbook, then there's no proof. If a customer borrows money and pays,
but there's no signature on the passbook, it means that the customer just made it up
because there's no signature from the collector to verify it. That's how it works.
Interviewer: Paano po nyo malaman na a yung, for example sa collector naman po, um
may nilista ren po sila.

Translation: How do you know, for example with the collector, if they have a list?
Client: Oo gina lista nila halimbawa, a didto ilista nila sa ano sa passbook sang customer
nga gina uyatan, tapos ilista nya pod sa iya nga notebook pod nga adlaw adlaw nya nga
gina collection nga para pag abot diri sa ano pag abot sa opisina himuan nya report ,
halimbawa parehas sang, halimbawa bayad ni Dela Cruz subong na adlaw, singkwenta
halimbawa, isulat nya didto nga amuna nga singkwenta ang kay Dela Cruz tapos i ano
nya gid i butang nya sa iya nga daily collection , may ara na sya na daily collection nga
may mga pangalan tapos may payment na sya kung ano na adlaw gin collection.
Translation: Yes, they list it. For example, they list it in the customer's passbook that they
hold, and then they also list it in their notebook that records their daily collections. When
they arrive at the office, they create a report. For instance, if Dela Cruz paid today, let's
say fifty pesos, they would write it down in their notebook under Dela Cruz's name and
add it to their daily collection record. They have a daily collection that contains the
names of the customers and the payments they made on a given day.
Interviewer: May instances po ba na nagkakamali record ang collector?

Translation: Are there instances where the collector makes recording errors?
Client: Oo di mana maiwasan, kis a gid masipyat na sila sa ila nga record
Translation: Yes, it can't be avoided. Sometimes, they make mistakes in their records.
Interviewer: Tapos sa inyong, sa part nyo naman po as company paano po kayo like um,
mag gegenerate ng monthly report.
Translation: And then, on your part as a company, how do you generate the monthly
report?
Client: Ay may ara nga ano, computer, ang sa auditor naman amuto sya ang mag ano sa
computer para pagka tan aw mo didto bal an mo pila ang balance sing customer kung pila
pa ang, kung halimbawa, kung may pila ang na collection didto kag pila pa ang balance
sang customer para mag ano sya sa mag balance.

Translation: We have a computer, and the auditor is the one who uses the computer to
check how much balance the customer has. For example, if there are collections and the
customer still has a balance, he will input it in the system to balance it out.
Interviewer: bale yung binibigay ng collector yun naman yung record dun, nirerecord
nyo.
Translation: So, the record given by the collector is the one that you record?
Client: Pila ang record, gina record gid sang computer para pag tan aw mo didto ma kita
mo nga ay si Dela Cruz, ang nga a hindi ni updated iya na bayad, amuna sya, lugi ta sini
ba. Pugson mo naman dapat ang collector nga collectionun mo na sya kay kung hindi mo
na sya collection ma lugi man ta sa expenses sa adlaw adlaw.
Translation: Yes, we record it, and the computer also records it. So, if you check it, you
can see if Dela Cruz hasn't updated his payment, and then we're at a loss. The collector
should be forced to collect from him, or else we will lose money on a daily basis.
Interviewer: Ano po yung um, App na ginagamit po ng auditor.

Translation: What app does the auditor use to record it?
Client: Ang apps na?

Translation: The app?
Interviewer: Para ma record nya, Excel po ba?

Translation: Yes, to record the collections.
Client: Excel, Oo, kay mas damo ang iya na ano.

Translation: Excel, yes, because there are many things to record.

Interviewer: May sample po ba kayo ng form na gina fill up nang customer. Bago sila
mag.
Translation: : Do you have a sample form that the customer fills up before they apply for
a loan?
Client: Wait lang, tan.awun ko lang kung may ara.

Translation: Wait, let me check if we have one.
Interviewer : Ano po yung mga requirement para maka apply po ng loan?

Translation: What are the requirements to apply for a loan?
Client: ID, amo lang na ID.

Translation: Just an ID.
interviewer: ID lang po. So yung valid ID po, pini picturan nyo lang po or xine xerox or.
Translation: An ID, so you just take a picture of the valid ID or photocopy it?
Client: hindi a, ang may ID gid sya kag pagkatapos nang ti syempre CI ayon pa man na
sya, hindi mana sya mag CI sa balay gid mismo kung di sa silingan mag CI na kung
insakto ba tong gina sugid nya or hindi , amuna sya ang gina basihan pagid dira nga isa.
Translation: No, they need to have an ID, and after that, they will be interviewed. They
can't have an interview at home, but they can have it in the neighborhood to check if the
information they provided is correct. This is what we base on if they are approved or not.
Interviewer: So ung ID ng nag hiram po ng pera, kini keep nyo po.

Translation: So you keep the ID of the person who borrowed the money.
Client: Opo gina tago ni sya, Gina papilit ni sya sa promisory note.
Translation: Yes, we keep it. They are forced to sign a promissory note as collateral.
Interviewer: Bale yon yung naging collateral nila.

Translation: So that becomes their collateral.
Client: Oo, amuna lang na sya.

Translation: Yes, that's right. It's the only collateral we accept.
Interview: Gaano po katagal bago maka tanggap po ang customer ng.

Translation: How long does it take for a customer to receive the loan?
Client: Depende sa pag CI, kung san o sya pwede tagaan kag depende man kung
halimbawa kung need sya tagaan nga insigida nga ano kung pag CI mo nga nang kaya
nya bayaran or need nya gid kwarta , syempre na ikaw nga naga pautang siguraduhon mo
man gid e nga maka bayad ni sya, amu sina. Kung interesado ba ni sya mag bayad adlaw
adlaw sa imo kung ano sya kasidido mag bayad kung syempre gi pautang mo amuna ang
negosyo mo dapat siguraduhon mo man ang imo nga negosyo e nga maka ginansya ka,
amu sina.
Translation: : It depends on the customer's background check and their ability to pay. If
they can prove that they are capable of paying the loan, we can release the money right
away. But if there are doubts, we may need to do further verification.
Interviewer: So gaano po katagal, abot po ba ng one week.

Translation: So does it take about a week to process the loan?
Client: Halimbawa kung di mo sigurado, need mo pa mag CI sa iba nya na ano, kay kung
basi damo sya mga kautangan , amuna nga ma delay pa, “Ay mam gina ano pa namon ba
kay gina kwan pa sing auditor” amu sina ba gina budget2, amuna rasonan nyo lang ang
customer ng amo sina, tapos halimbawa kung hindi, hindi gid sya pwede tagaan
hambalan mo “ay disapproved tong sa imo nga ano Mam ba kay amuni amuni” tagaan
mo lng sya ka rason kung ano, amo na sya.
Translation: It really depends on the customer. If they have a lot of outstanding debts, it
may take longer. We need to make sure that we can trust them to pay back the loan.

Interviewer: Pwede po ba na ma picturan?
Translation: Can I take a picture of the requirements?
Client: Ok na?
Translation: Sure, that's okay.
Interviewer: Ok na po. Ano po yung mga requirements nyo bago nyo ma approved yung
loan po mam.
Translation: What are the requirements for loan approval?
Client: Amo lang to, ano lang, application form lang, promissory note. Application form
tas CI tapos kung tagaan mo na sya, amo lang tong kuan, tong promissory note nga naga
pabalo lang sya dapat ang utang mo dapat amuni sya , dapat ang adlaw mo amuni sya,
makita mo na dira sa iya na ano, kung pila ging utang nya , kung pila ang daily nya nga
gina bayaran.
Translation: We only need the application form and a promissory note. We also do a
background check to verify their identity and ability to pay. Once we approve the loan,
we give them the promissory note, which outlines their daily payments and the total
amount they owe.
Interviewer: Ung interest rate po ba ng loan nyo, ay fixed po ba.

Translation: Is the interest rate fixed?
Client: Oo, fixed gid na sya.

Translation: Yes, it's fixed
Interviewer: Magkano po ung interest rate ng sa.

Translation: How much is the interest rate?
Client: 10% na sya, basta kuan, parehas sini 12,000 ang iya na kuan 12, 000 ang ano nya ,
200 ang iya na daily, ti sa 200 , 200 times 60 days amuna sya. Ay mali mani ang iya na.

Ang loan nya diay ara o 10,000 , 10,000 ang loan nya ara , te 200 ang ano nya, so ibig
sabihin ang sa iya na ano is 2,000 sa dalawa nya ka bulan ang interest.
Translation: It's 10%, as long as it's the same as the other one. He borrowed 12,000 and
the interest is 200 pesos per day. So for 60 days, it will be 200 times 60, which is
incorrect. His loan is actually 10,000 pesos, and the interest is 200 pesos per day, which
means his interest for both months is 2,000 pesos.
Interviewer: Bale 10% po per month. So ano kung na missed po bayad yong customer,
um ano may penalty po ba or wala?
Translation: So, it's 10% per month. What happens if the customer misses a payment? Is
there a penalty?
Client: Kami wala, depende man abi sa companya, pero kami wala kami ga hatag
penalty.
Translation: We don't have a penalty, but it depends on the company. For us, we don't
give penalties.
Interviewer: If or sample, di natapos ni customer within 30 days yung

Translation: For example, if the customer doesn't finish paying within 30 days?
Client: Sa 60 days nya

Translation: in 60 days
Interviewer: Ay sa 60 days po.

Translation: Ah in 60 days
Client : kung wala nya natapos , depende sa ano abi kung kis.a Ano abi kaisa kung
kumba daw gina re struct sya , nga tagaan sya sing porsyento liwat nga ano , pero
palawigon naman ang iya nga kuan ang nga ng daily, kumba i extend ang iya na daily ,

pero mas gamay ang ano nya , pero may ara gyapon sya , di ko bal.an kung pila ka
percent, 2 percent man ato or ano, di ko bal.an ba.
Translation: If he can't finish it within 60 days, it depends on what we agree upon. For
example, if he needs to restructure his payments, we might give him a percentage, but
we'll extend the duration of his loan. If we extend the duration of his loan, the interest
will be lower, but his balance will also be smaller. I'm not sure how much the percentage
is, maybe it's 2 percent or something else.
Interviewer: Pero mas mababa na yong interest po dun sa, bale ung balance
Translation: But the interest rate is now lower, right?
Client: ang balance nya sakaan pagid sang ano sing percent pagid , te mas maayo kung
mabayaran nya e,kay para nga at least ang interest nya kay 10 lang , kung ano nya i plus
an pa interest nya , kay tong gi interest , gi interest san pagid liwat.
Translation: Yes, if he pays his balance, the interest will only be 10 percent. If he adds
more interest to his balance, then he'll have to pay interest on top of interest.
Interviewer: Pero 10 percent paren po ba.

Transation: So it's still 10 percent?
Client: Pero bag.o kami mag hatag sa customer sina gina explain sa iya nga kung hindi
mo ni kaya bayaran ang amuni sini nga kantidad , e re struct ta ni , pababaan ta ang imo
na ano pero dagdagan ang daily nya , pero sa gi dagdam mo na daily kailangan may ara
ka didto pila ka percent na i dagdag mo kay malugi kaman.
Translation: We now explain to customers that if they can't pay the amount, we'll
restructure their payments. We'll lower their balance but increase their daily payments.
However, if they increase their daily payments, they need to have a certain percentage to
cover the additional cost, or they'll incur losses.
Interviewer: So bale po if nasa due date na sya binibigyan nyo paren sya ng another loan
or wala na po or balance nalang.

Transalation: So if they miss their due date, do you still give them another loan, or just let
them pay the balance?
Client: Depende sa iya na ano, depende sa iya kung pwede pa sya, pero kung halimbawa
permaminti sya wala ga bayad i ano nalang na, bahala mag over due sya collection non
nalang para at least makuha mo pa ang kwarta mo bisan capital nalang.
Translation: It depends on their situation. If they can still pay, we might give them
another loan. But if they can't pay permanently, we'll let them pay the balance or just
collect it through overdue payments so we can at least recover our capital.
Interviewer: May mga fee’s po ba kayo ung mag apply po ung borrower? Kung mag
apply po ako ng loan, may other fee’s pa po ba na babayaran.
Translation: Are there any fees for borrowers who apply for a loan? Do they need to pay
other fees?
Client: Service charge.

Translation: Yes, there's a service charge.
Interviewer: So magkano po yung service charge?

Translation: How much is the service charge?
Client: Gamay man lang, daw pila lang na ka percent. Sa 10,000 nya kay 110, ibig
sabihin, hindi ko bal.an pero 1 percent lang na. Kay 110, Service charge.
Translation: It's just a small percentage, maybe around 1 percent. For example, if they
borrowed 10,000, the service charge would be 110.
Interviewer: May mga policy po ba kayo mam na sa payment po ng customer, other

policies po?
Translation: Do you have any policies regarding customer payments, or other policies?

Client: Wala na amuni lang ning hawid nila ang ano promissory note, magkasuhay amo
lang ni i hatag ang promissory note kay naka indicate nga “Promise to pay”, na amuna
“with the amount of”, daily install amuna sya kay nag promisa naman sya dira , diri ang
imo ipakita sa mag pa barangay ka, valid naman ni sya kay gi pirmahan nya mo.
Translation: We only hold on to their promissory note. We agree to give them the
promissory note which states "Promise to pay" and "with the amount of" their daily
installments. They made a promise to pay, and that's what they have to show if they seek
assistance from their barangay. This is a valid document because they signed it.
Interviewer: So paano po nyo malaman kung magkano yung ibibigay nyo sa customer
nyo?
Translation: Do you have any other policies for customer payments?
Client: Sa ano sa mag CI, kung pila ang i demand ka customer, depende na sa imo kung
pila ihatag mo, kung may negosyo sya or ano , pero wala kami naga hatag sa mga wala
negosyo. Kay kung wala negosyo hindi sya makabayan adlaw adlaw, kung wala sya
income.
Translation: We just have a promissory note where they agree to pay the loan daily. It's a
valid document, and they can show it to the barangay if they need to. It indicates that they
promised to pay the loan with the specified amount and daily installments, which they
agreed upon and signed.
Interviewer: Magkano po ung first loan?

Translation: How much is the first loan?
Client: 5,000 amo lang na.

Translation: It's only 5,000 pesos.

Interviewer: May other po like , may other loan offer sa company?
Translation: Are there any other loan offers in the company?
Client: Wala na, daily lang.

Translation: None, only daily loans.
Interviewer: Nag a allow po kayo ng monthly or by monthly.

Translation: Do you allow monthly or bi-monthly payments?
Client: Wala po.

Translation: No.
Interviewer: So what if yung borrower like hindi pa sya tapos sa loan nya but nag request
pa siya ng additional loan.
Translation: So what if the borrower hasn't finished paying their loan but requests an
additional loan?
Client: Hindi siya pwede, kay hindi nya pa gani mabayaran ang loan nya mag ano naman
sya , mag loan naman sya ulit. Mas lalo di sya kabayad.
Translation: They can't, because if they can't pay their current loan, how can they get
another loan? It will only make it harder for them to pay.
Interviewer: So paano ninyo po ma ensure or ma encourage yung ma borrowers na mag

pay po talaga sila daily.
Translation: So how do you ensure or encourage borrowers to pay their loans daily?
Client: Istoryahon mo siya e, nga kailangan amuni, kay kung hindi interest an ni sya
liwat. Amu na sya.

Translation: You have to talk to them and emphasize the importance of paying on time,
because if they don't, the interest will accumulate. That's it.
Interviewer: Okay po.

Translation: Okay.
Interviewer: Paano po ma determine yung haba ng loan po ng isang borrower?

Translation: How do you determine the length of a borrower's loan?
Client: Amuna 60 days lang gid, halimbawa nga mag overdue sya kung kailangan nga i
pugaon mo sya nga mag bayad, kay kung hindi sya mag bayad sa overdue, malugi ka
naman.
Translation: It's only for 60 days. For example, if they are overdue and you need to urge
them to pay, if they still don't pay during the overdue period, you'll lose money.
Interviewer: So bali fixed po dapat.

Translation: So, it should be fixed.
Client: I fixed gid na ang 60 days, kung halimbawa may ara man customer nga
halimbawa wala pa ano, wala pa nag due mag tapal na siyam okay lang na siya kay
ginansyado ka sina, pero kung mag overdue na sya nga hindi nya mabayaran lugi kagid
sina.
Translation: Yes, it's fixed for 60 days. If there's a customer who hasn't reached the due
date yet, it's okay to wait because you've already invested in them. But if they become
overdue and don't pay, you'll lose money.
Interviewer: So may instances po ba na yung collector, parang di niya na remit yung

ibang na collect?

Translation: So are there instances where the collector doesn't remit the collected
amount?
Client: May ara, damo. Hindi gid na maiwasan basta kwarta.

Translation: Yes, there are many. It's unavoidable when it comes to money.
Interviewer: So paano if yung borrower ay di talaga ng ano nila, ano yung gina take
ninyo na action?
Translation: So what do you do if the borrower really can't pay?
Client: pag dako gid ang utang nya, kung halimbawa mga 10,000 pa above, kailangan
tagaan sya notice , tapos papirmahan gid sa iya. Notice halin sa opisina , tatlo ka notice
nga gin tagaan mo sya ka notice nga napirmahan nya kag wala pagid sya, pwede mo na
sya ipa barangay.
Translation: If their debt is substantial, for example, if it's over 10,000 pesos, we need to
give them notice and have them sign it. We will give them three notices from the office to
sign, and if they still don't pay, we can take legal action and go to the barangay.
Interviewer: Ilang customer po yung hina handle nyo? Sa beginning palang po.
Translation: How many customers do you handle in the beginning?
Client: Kung si mister ko lang nag ano, amat amat lang, mga tatlo ka customer, dagdagan
naman, ang kwarta naga rolling lang gid sya as in asta nga mag dako, wala gid kami may
ging ano na kwarta nang siling nga ging labay amo sina, kung baga amat amat lang, tatlo
tapos nag lima na, nag sampo na.
Translation: At the beginning, when my husband started, it was just a few, around three
customers, but it increased as the money started rolling in, and we didn't have much
money to start with, just a little. Then it increased to five, then ten.

Interviewer: So gaano po katagal yung bago ma transfer ni auditor po lahat ng records
every day? Usually, gaano po katagal?
Translation: How long does it take for the auditor to transfer all the records every day?
Client: Hindi kay adlaw adlaw man sya naga ano e naga encode pag ano sa collector, ma
monitor nya gid basta daily sya naga ano, kailangan man nga abtik sya i encode kay didto
nya ma bal.an nga monitor nya kung pila pa balance ka customer, kung naga bayad ba
sya adlaw adlaw o wala. Kailangan nya i encodem kung si auditor wala na encode ti
malugi ang companya mo kay di mo man ma monitor.
Translation: The auditor transfers the records every day because he needs to monitor the
collectors and the balances of each customer. He needs to encode the data quickly so that
we can monitor the payments and balances of each customer. If he fails to do so, we may
lose money.
interviewer: Mga ilang auditor po ang meron dito?

Translation: How many auditors do you have?
Client: Isa lang.

Translation: We only have one auditor.
Client: Sya nanang ga hatag sing tanan nga ano , tanan nga trabaho iya nana, sya lang isa.
Mag himo sang contrata sa customer tapos ang sa collector, kumbaga sya ang naga mato
mato kung pila i ano sa customer , halimbawa mga dlagko na nga kwarta, ma hambal sya
sa amo nga, “ Madam pwede ang loan ni ano kay amuni”, dapat mag consult sya amo
sina.
Translation: She is the one who handles everything, all the work is hers, she is the only
one. She creates contracts with the customers, and when it comes to the collector, she is
the one who calculates how much each customer owes. For example, for larger amounts,
she consults us and says, "Madam, can we give a loan to this customer?", she needs to
consult us for that.

Interviewer: Ang sa collector po?
Translation: How many collectors do you have?
Client: Lima lang na sila subong.

Translation: We have five collectors.
interviewer: Sa bali sila na ang naga print ng promissory note.

Translation: Who prints the promissory note?
Client: Si auditor. Tapos ang promissory note naman i hatag sa collector tapos pagka
hapon ibalik sing collector sa ano. Tapos si auditor naman monitor on niya na nga, “Ang
promissory note ni ano , diin na, dal a diri.”, i check niya na sya.
Translation: The auditor prints the promissory note, and then he gives it to the collector,
who will collect the payment from the customer. The collector will return the promissory
note to the auditor in the afternoon, and the auditor will check it.
Interviewer: So far yon lang naman po mga question po namin. So, Thank you so much
po sa pag entertain po sa amin. Thank you po. So bali helpful po yong data na na gather
namin sa pag accomplish po ng aming system, if ever po na matapos po ito mag papa test
run po kami sa company ninyo, para magamit ninyo po. Thank you so much po mam.
Translation: : Thank you so much for entertaining our questions. The data we gathered
will be helpful in developing our system, and we will conduct a test run in your company
once we finish it. Thank you again.
Client: O sige thank you, no probs.

Translation: No problem, thank you too.
Second Interview
Interviewer: Ano po yung term ninyo dito sa ano.
Translation: What is the term you use for this?

Client: Ari?
Translation: This?
Client: Kwan ni sya, tawag sini DCR, Daily Collection Report, DCR.
Translation: We call it DCR, which stands for Daily Collection Report, DCR.
Interviewer: So on average po, how many disbursement do you process within the day,
ilan po yung mga remit nyo or binibigay.
Translation: So on average, how many disbursements do you process within a day, and
how many do you remit or give out?
Client: Depende, pero sa isa ka adlaw mga ka isa or ka tatlo.

Translation: It depends, but in a day it's usually one or three.
Interviewer: So, how many loan application do you typically handle each day po?
Translation: So, how many loan applications do you typically handle each day?
Client: Kuan, amuto mga tatlo or lima ka loan application adlaw adlaw.
Translation: Usually around three to five loan applications per day.
Interviewer: Mga, how long po? Ma approved yung loan application?

Translation: So, how long does it usually take for a loan application to be approved?
Client: Bali mag CI pa, depende abi sa area kung ano kalayo abi ang iya na area, te kung
layo layo, kuan gid e mga 5 days kung layo gid sa bukid. Pero kung kuan lapit lang, isa
ka adlaw, 1 to 2 days lang.
Translation: First, there's the credit investigation, which depends on the distance of the
area. If it's far away, it usually takes around 5 days, especially if it's in a remote area. But
if it's nearby, it only takes a day or two.

Interviewer: So, may problem po ba kayo na encounter na tambakan po kayo ng loan
application?
Translation: So, have you encountered any problems where you were overwhelmed with
loan applications?
Client: Oo, lalo na subong kay kinanglan sing capital.

Translation: Yes, especially now that there's a need for capital.
Interviewer: Ano po yung mga type ng monthly report? Na gina generate nyo per month?
Translation: What are the types of monthly reports that you generate per month?
Client: Kuan, Monthly Collection Report, Monthly Borrower Report, daw amuna man
lang kay sa borrower report diri namon mabal an pila amon bag o nga customer, kag pila
na tanan amon borrower. Sa monthly collection report naman diri namon mabal an pila
amon collection sbong nga bulan
Translation: There's the Monthly Collection Report and the Monthly Borrower Report.
The Borrower Report includes the number of our new customers and our total number of
borrowers. Meanwhile, in the Monthly Collection Report, we can see how much we
collected for the whole month.
Interviewer: So what is the additional interest rate applied to borrowers who failed make
payment?
Client: Kuan, kung mag failed payment sila ma, every, ma kuan ma restructure, may 10
percent na sya na kuan additional, baydan mo naman 2 months.
Translation: If they fail to make a payment, every time it happens and they decide to
restructure, there will be a 10 percent additional fee applied, which they will have to pay
for two months.
Interviewer: So bali , 10 percent din po.

Translation: So it's equivalent to 10 percent.

Client: 10 percent ang kuan niya, sa duwa ka bulan.
Translation: Yes, it's 10 percent for two months.
Interviwer: Ay, so bali yung balance nila ay i.

Translation: Oh, so their balance is equivalent to
Client: 10 percent sa 2 months naman na baydan.

Translation: Yes, they will have to pay 10 percent for two months, in addition to their
balance.
Interviewer: 10 percent, tas bali 60 days po ulit.

Translation: Interviewer: 10 percent, tas bali 60 days po ulit.
Client: 60 days naman ang kuan nila, tas depende mana sa customer kung tig.a gid sya
mag bayad ti way ma restructure gid, kung naga bayad man sya nga naga bayad, may ara
man kami gina tawag nga daw maluoy ka man, amuna sya ang kuan.
Translation: Yes, they have 60 days, but it depends on the customer whether they will
pay or restructure. If they pay, we have a program called "maluoy ka man" which we can
offer to them.
Interviewer: So bali ang grace period nyo po sa past due is 60 days po.
Translation: So your grace period for past due accounts is 60 days.
Client: Nang oo, ay ang grace period nang di sila ka renew

Translation: Yes, that's the grace period if they don't renew.
Interviewer: Ay yung hindi nila nabayaran.

Translation: Oh, the ones they haven't paid for.
Client: Aw, 60 days.

Translation: Oh, 60 days
Interviewer: What point do you send a notice ?
Client: Mga kuan, mga 3 days na sila nga overdue, tas wala na gina baydan, tas 1 week
after sang kuan may ara naman sing restructure notice.
Translation: We usually send a notice after three days of overdue payments and one week
after, if they still haven't paid, we send a restructure notice.
Interviewer: Ay yung dito po sa 3 days overdue?

Translation: Oh, this is about the 3 days overdue?
Client: Nang first notice, nang gina butang ang remaining balance, tas amuna lang na,
remaining balance, i remind ang baraydan para di sya ma restructure.
Translation: Upon the first notice, we indicate the remaining balance and we remind the
borrower to pay it off to avoid restructuring.
Interviewer: So if 3 days na hindi sila nag pay po, i restructure po.

Translation: So if they haven't paid after 3 days, the loan will be restructured.
Client: Pag after sa 3 days, may 1 week pa sila na i process bago ma restructure.
Translation: If they haven't paid after 3 days, they still have 1 week to process before the
loan is restructured.
Interviewer: So if bayaran po nila

Translation: So if they pay it off.
Client: Hindi sya ma restructure.

Translation: The loan won't be restructured.

Interviewer: So, after po ng 1 week ng restructure notice tapos hindi paren sila nag bayad,
anong notice na po ang ibibigay?
Translation: So after 1 week of the restructure notice and they still haven't paid, what
notice will be given?
Client: Kwan gyapon, didto na mag sulod ang 60 days, basta mahatagan sila sing
restructure, amuna mag sulod ang 10 percent na 2 months naman sila na ma kuan na
baydan.
Translation: It's still the same, after 60 days and they are given a restructure plan, they
need to pay 10 percent every 2 months.
Interviewer: So, what if? Paano sir like kahit na restructure na yong loan tas hindi nag
bayad, so ano po yung parang penalty.
Translation: So what if, even after restructuring the loan they still haven't paid, what is
the penalty?
Client: Ano gyapon , amo gyapon, 2 months after dagdagan mo naman 10 percent sa
restructure niya.
Translation: It's still the same, after 2 months you add 10 percent to their restructuring
plan.
Interviewer: Restructure paren.

Translation: The loan will still be restructured.
Client: Depende abi na sa kuan kunware patay na, amuna, lugi na to sya. Di naman mag
bayad, hindi naman ma sukot.
Translation: It depends if, for example, the borrower has already passed away, they are
already at a loss. They won't pay and they can't be forced to do so.
Interviewer: So, default na po yung loan.

Translation: So the loan is already in default.

Client: Default na yong loan, pero pag nag sibat, continue gyapon tong ano nya,
pangitaon gid sya kung diin sya nag sibat nga lugar amuna.
Translation: The loan is already in default, but if the borrower resurfaces, their loan will
continue and we will try to locate them.
Interviewer: So default lang po yung pag death na yung reason.

Translation: The loan is only in default when the reason is the borrower's death.
Client: Pero kung ang bata nya naka pirma, ang sa promissory note na ging kuan nya,
didto sukton tong bata nya.
Translation: But if his/her child signed, the one indicated in the promissory note that
he/she agreed to, the child will be held accountable for it.
Interviewer: What is the duration of sending between notices before taking legal action?
May naga taken legal action.
Interviewer: What is the duration of sending between notices before taking legal action?
May naga taken legal action.
Client: Kung kuan, kung 1 year nagid nga kuan, tapos above 10 thousand ang ano niya
utang, nga wala nya gid gina baydan daydan, amu na sya. Ang kuan lang amu tong 10
thousand base nya nga utang gid, so kuan nagid, amo tong wala sing percentage nga na
restructure, so amuna ang base amount nya.
Translation: If, let's say, one year has passed and the amount owed is above 10 thousand
and the borrower has not made any payment towards it, then legal action will be taken.
The amount used as the basis for this is the actual amount borrowed, which is 10
thousand. If the loan has not undergone restructuring, no percentage will be added to the
base amount.
Interviewer: Sa principal amount lang po. Yun lang po yung ibalik nyo doon.
Translation: Only the principal amount will be returned.

Client: Amuna nga wala gid payment sa isa ka tuig nga mag legal action gid, barangay
gid ang una sina.
Translation: If there is no payment made for a year, legal action will be taken, starting
with barangay (local government unit) mediation.
Interviewer: So, when do you classify a loan default and what criteria do you use for
termination.
Client: Death, kay di mo man abi ma default kung nag sibat sya kay ara man balay nya
da, ti balang araw mag balik man sya dira, may mga amo abi sina nga cases sa amon nag
sibat sya for 1 year, 2 year tas nag balik sa balay nya, nasukot namon sya, bayad gyapon
sya. Di gid na sya ma default.
Translation: Death, because it cannot be considered as a default if the borrower has
passed away and the house is still there. There are cases where borrowers have gone
missing for one or two years, but eventually returned home and paid their debts. That will
not be considered as a default.
Interviewer: What are the illegibility criteria for borrowers to apply for a loan?
Translation: What are the eligibility criteria for borrowers to apply for a loan?
Client: Nang kuan lang, may ara gid sya daily income, sari sari store, may basta may
daily income ka gid nga pwede kwaan, kunware may barbeque sila na kuan, wala sila
daw gusto nila padakoon ang capital, te pag amuna pwede mo sila pahurmon ka 3
thousand, depende abi na sa ila nga makita mo nga baligya nila.
Translation: They just need to have a daily income, like a sari-sari store or any kind of
daily income. For example, if they have a barbecue business and they don't want to use
up all their capital, they can borrow 3 thousand. It depends on what they sell.
Interviewer: Pero yung first loan po ba is 5 thousand lang po talaga?

Translation: But is the first loan really only 5 thousand?

Client: Subong may ara man nga mga 3 thousand, mga kuan nila kunware pampadugang
lang. Daw giting lang pampadugang, mga gamay na sari- sari store.
Translation: "Right now, they have around 3 thousand, like they're pretending it's just for
additional funds. It's just like an additional fund, like a small variety store."
Interviewer: So naga depend po sa customer yung ano.

Translation: "So it depends on the customer."
Client: Pero ung first loan gid namon 5 thousand gid, pero may iban na 3 thousand lang
gid para di kaayo bug at.
Translation: "But our first loan was really 5 thousand, but some are just 3 thousand to not
be too burdensome."
Interviewer: So, what documentation is required for loan application?

Translation: "So, what documents are required for a loan application?"
Client: Nang valid ID gid, tapos kuan kunware mag asawa dapat na pirma sa application
form nga both ang mag asawa mag pirma, nga bal an sing asawa nga nag utang siya sing
amo sina. Tas bal an man sing ano niya nga nag utang siya.
Translation: "A valid ID, and if you're married, both spouses should sign the application
form, and the other spouse should be aware that they're borrowing money. And they
should also be aware of who borrowed the money."
Interviewer: Sa application loan sir?

Translation: "For the loan application, sir?"
Client: Sa application loan.

Translation: For the loan application
Interviewer: So, how long i take typically process, mga 5 days.

Client: Oo, mga 5 days ang max.
Translation: "Yes, around 5 days is the maximum."
Interviewer: Mag ask lang po ako regarding sa process sir. Ano po, so bali pag start ng,
kunware mag apply o for example lang loan. So asan po ako mag tanong or.
Translation: "Just want to ask regarding the process, sir. So, for example, when you start
to apply for a loan. So where do I ask or go?"
Client: Sa mga tindahan, daw mga refer sila mga amuna, mga amu sini, kunware nag
utang sa amon isa ka tindahan, mahambal sya kunware, ma marites sya, daw ma balitaan
nga amu sina may pa utang, te ato siya may pautang gyapon. Gusto niya padakoon capital
nya, amuna may i refer ko nga amo sini, maayo na sya, matisting na kung kuan, ga damo
nga ga damo ang customer.
Translation: "They refer us to stores, like if someone borrowed from one store, they
would say something like 'Marites says she still owes us money, and she has other debts
too.' And then she would want to increase her capital, so I would refer her to someone
who's good at it, and she can handle a lot of customers."
Interviewer: Sa referral. Tapos pag na refer, yung collector na yung mag bigay ng loan
application.
Translation: "Regarding the referral. And when they are referred, the collector will give
them the loan application."
Client: Tas ng loan application, mag CI sina, auditor, Ang supervisor. Di pwede mag
credit investigator ang collector.
Translation: "After the loan application, there will be a credit investigator, auditor, and
supervisor. The collector cannot be the credit.
Interviewer: So, supervisor and auditor.
Interviewer: So, ilang supervisor meron po kayo sir?

Translation: So, how many supervisors do you have sir?
Client: Kuan, mga isa man lang.

Translation: We only have one.
Interviewer: Tapos ang auditor kay isa man lang. So after mabigyan ng collector ng loan
application yung customer tapos ibalik nya sa office po?
Translation: And the auditor is also just one. So after the customer is given the loan
application by the collector and he returns it to the office?
Client: Ibalik nya for CI, mag pila na sya for CI.
Translation: He returns it for credit investigation, and he queues up for that.
Interviewer: So, typically gaano po kahaba bago ma CI yung ano.

Translation: So, typically how long does it take for the credit investigation?
Client: Kung amuna, kung lapit lang, mag ano sya, kahapon ma CI nagid. Pero kung sa
bukid pagid, schedulan gid na sya nga kuan mga 5 days ang kalaba.
Translation: If it's near, it can be completed the next day. But if it's in the countryside, it
will be scheduled for about five days.
Interviewer: So, may na encounter po kayo na problem na nag mixed po yung mga loan
application?
Translation: Have you encountered any problems where loan applications got mixed up?
Client: Ara gid. Ang problema kay mag tambak ang application ba, te mag halo halo kis
a, te mag tambak siya te kis a ga abot na diyes (10) to kinse (15) ang kailangan i-CI,
tapos isa lang amon auditor te ayawan gid siya ka handle sito kay damo pa siya iban ubra,
tapos kwarta gud na, kelangan capital sa negosyo mo, sa panahon subong pigado nga
daan, ang capital gid ang kelangan. Matambakan gid sing application.

Translation: Yes. The problem is that the applications pile up, get mixed up, and need to
undergo credit investigation which can take 10 to 15 days. We only have one auditor who
cannot handle all of the work, so the applications pile up. And since money is involved, it
is important to have capital for the business. In these tough times, capital is really needed.
The applications can really pile up.
Interviewer: Pero may instances po ba na, nawalan nasira yung loan application sa office
or ganun po.
Translation: But are there instances where the loan applications got lost or destroyed in
the office?
Client: ara, nang hindi lang ma CI, nang wala nadala kay nabasa sa ulan, nan di na
makuan, na misplace nan, amuna gid ang mga problema.
Translation: Yes, if it does not undergo credit investigation, if it gets wet in the rain, if it
is misplaced, those are the problems.
Interviewer: So, after po ng pag CI ng auditor or supervisor po, dun sa CI po, dun po sila
mag pipirmahin ng promissory note.
Translation: So after the credit investigation by the auditor or supervisor, they sign the
promissory note there in credit investigation?
Client: Hindi pa, daw ng daw i background check pa, credit investigation, kung
nagahambal ba sya sing tuod, kung tama ba ang mga information niya, dira sya naga
istar, tas pag once na okay na, ma approvahan na na sya. Pwede na sya i release pagka
bwas kung may ara na sing budget sa iya amo na sya.
Translation: No, there is still a background check and credit investigation. They check if
he is telling the truth, if the information is correct, then they approve it. If there is a
budget for it, it can be released the next day.
Interviewer: So mag balik pa yung supervisor o auditor.

Translation: So the supervisor or auditor has to go back?

Client: Sa kuan na, sa collector na ipala sya, ang kwarta para sa iya.
Translation: They will go back to the collector where the money is.
Interviewer: Tapos sa pag release, dun na po sila mag pipirma ng promissory note. Tapos
ung sa valid ID sir, kinukuha nyo po talaga yung valid ID?
Translation: Then when it's released, they will sign the promissory note there. And for the
valid ID, do you really get it?
Client: Wala na kuan lang, ipa photocopy lang pabalik, ipa tapik mo lang sa application
form ang valid ID kay kuan importante ang valid ID, tapos sa asawa nya na, kunware live
in sila. Ang ID, ang ID ka nanay niya.
Translation: No, we just have it photocopied and attached to the application form because
it's important. Then for his wife, if they are living together, we get the ID of his mother.
Interviewer: Tapos, pag release po mga ilang days pa bago ma start yung collection?
Translation: And how many days before the collection starts after the release?
Client: Kunware release nya subong, pag ka bwas na dayon.

Translation: If it's released today, then it will start tomorrow.
Interviewer: So, daily diba ang pag sukot niya sina sir. Then ano po yung pag process ng
collection ng collector.
Translation: So the collector does the collection daily. What is the process of the
collector's collection?
Client: Bali kadtuan nya lang, sukton nya ang kwarta, tapos i sulat nya didto sa form sa
may DCR, tas dapat sa passbook ang pirma gid na sya, bawal nga di gid mag pirma nga
nag hatag ang customer pirmahan mo gid na sya didto sa passbook nya, amo gid na ang
kopya sing customer, pero kung kuan di ka mag hatag kwarta kung wala pirma sa
passbook kay amuna ang katibayan niya nga nagbayad sya.

Translation: He just goes to the customer, collects the money, and writes it on the DCR
form. The customer must sign on his passbook. You cannot accept payment without the
customer's signature on his passbook because that is his proof of payment.
Interviewer: Yung sa form po na

Translation: About the form, what is it called?
Client: Tong kwan passbook o ledger, basta ledger ang tawag.

Translation: It's called the ledger.
Interviewer: Tapos ung sa DCR po na collector.

Translation: And about the DCR of the collector.
Client: Amo tong didto sa mag sulat, amoto ang gina report sa amon.
Translation: That's what he writes on, that's what he reports to us.
Interviewer: Pero hindi pini pirmahan ng customer yung DCR.

Translation: But the customer does not sign the DCR.
Client: Hindi na, sa collector pag audit abi sina makita na sya kung may kulang sya or
may over, may short may over, dira na sya makita kung sakto iyang remittance nya adlaw
adlaw. Kay pag check mo abi sina pag audit mo pagkuha mo sitong passbook sang
customer iyang ledger, i tugma mo mana, i tugma mo mana didto sa DCR, te kung may
kulang te wala e, baydan nya tong kuan kulang amuna.
Translation: No, during the audit, the collector will see if there are any shortages or
overages. He can check if his remittance is accurate every day. When he audits, he checks
the passbook or ledger of the customer and matches it with the DCR. If there is a
shortage, he will pay for it.
Interviewer: Anong date po yung pag audit nyo po?

Translation: What is the date of your audit?

Client: Surprise lang.
Translation: It's just a surprise.
Interviewer: Surprise lang, wala po like monthly basis.

Translation: Surprise, no monthly basis?
Client: Wala, surprise lang, everyday, pwede man weekly, basta surprise lang ang kuan,
kay di mo man abi ma bal.an nga naga ubra man sila nga tarong, te surprise lang, te
tarungon gid nila ubra nila kay surprise lang.
Translation: No, it's just a surprise. It can be daily or weekly, but it's a surprise because
we can't really tell if they are doing their job well. So it's a surprise, but they really work
well because it's a surprise.
Interviewer: So yung pag record po ng DRC, everyday po ba

Translation: So, is the DRC recorded every day?
Client: Everyday gid na kada sukot nila dala kada sukot sa customer, te kung di sila mag
record kung isip isip lang mag mali mali gid sila, dapat may dala gid sila na amuna para
ilista kag mag sakto ila na report.
Translation: Yes, every time they collect from the customers, they have to record it. If
they don't record it, they might make mistakes. They should have a sample to list and
make their report accurate.
Interviewer: Pag balik po ng collector sa office.

Translation: When the collector returns to the office?
Client: Amuna ang i submit nya, didto i butang sa computer. Ang gamit abi namon
subong kay kuan tong, excel.
Translation: They submit their record and put it into the computer. We currently use
Excel.

Interviewer: So everyday po trina transfer yung record ng DCR sa ano.
Translation: So, is the DCR record transferred every day?
Client: Everyday, everyday sa collection. Hindi sya pwede malampasan sa isa ka adlaw
para makita mo kung may ginansya or wala.
Translation: Yes, every day for the collection. It cannot be missed for a day to see if there
is a profit or not.
Interviewer: Sino po usually yung naga record.

Translation: Who usually records?
Client: Tanan, ang auditor amona lang ang naga uyat sa computer.
Translation: Everyone, the auditor is the only one who operates the computer.
Interviewer: Sir kis a mag incorrect record ba ang auditor?

Translation: Sir, can the auditor make incorrect records?
Client: Oo kis may amuna gid, amuna ang auditor kag collector gina pamangkot namon
kung may mali sa payment record
Translation: Yes, they can make mistakes. We ask the auditor and collector if there are
any mistakes in the payment record.
Interviewer: Ma calculate nyopo yung income nyo everyday?

Translation: Can you calculate your income every day?
Client: Oo, ma ano mo sya, biskan tan aw tanawun mo lang, mahambal mo kung may
ginansya ka gid or wala sa isa ka adlaw, siguro mga six thousand, five thousand to six
thousand ang income. Mabawi lang gid sya gamay.

Translation: Yes, you can, even if you just look at it, you can say if you have a profit or
not in a day. Probably around five to six thousand a day. It can easily be recovered.
Interviewer: May instances po ba like naka steal or kupit ung collector.

Translation: Are there instances like the collector stealing or taking money?
Client: Oo, pirmi man may amo sina, di gid na maiwasan, pag makita nga dako na ang
kuha, matanggal gid na sya e, bawal gid abi na. Basta mga ubra bawal gid mga amo sina.
Translation: Yes, it happens often. We cannot avoid it. If we see that the amount taken is
large, we immediately remove them. It is not allowed. Any kind of theft is prohibited.
Interviewer: Pero pag mag generate po kayo ng report, yung Monthly report manual
paren po?
Translation: But when you generate a report, is the monthly report still manual?
Client: May monthly report, damo damo abi na sya abi monthly report, ang monthly mo
na, bale mano mano dyapon, ang monthly mo na collection, monthly nyo na overdue,
mga release, dira na sya makita na, daw mano mano dyapon.
Translation: There is a monthly report. It's quite extensive. There are monthly collections,
overdues, releases, and you can see it manually.
Interviewer: So, ano po yung nakita nyo na problem sa process po ng business nyo sir?
Translation: So, what problem did you notice in your business process, sir?
Client: Sa kuan gid sa customer, kung di gid sila, dako gid nga kalugian na sa imo biskan
hambalon mo nga 3 thousand lang ng iya na 60 pesos per day in a long run di gid sya
mag bayad, maigo ka gid, nang 3 thousand mo masudlan pa na sing iban na 3 thousand
mag damo nga mag damo dira ka gid malugi, dapat makisama ka sa customers mo sa tao
lang gid na. Amuna nga High risk tawag namon sina, High risk , high rewards. Kung
lakas loob ka gid mag kwan ka, pero kung ma talaw ka hindi ka nalang ma kwan, di ka
nalang mag hatag, amuna sya wala kagid mahimo, nag hatag ka dyes mil pagkabwas wala

mo na sya makita, imo nana sala kay wala mo gi CI maayo. Kay ang dyes mil mo isipon
mo dako nana nga kalugian, 10 thousand mo, 200 adlaw nya, te kum baga ang daily mo
200 , te kumbaga 5000 thousand daily mo sa 200, 4800 nalang.
Translation: The problem lies in the customer. If they don't pay, it's a huge loss for you,
even if you say it's just three thousand and 60 pesos per day. In the long run, they won't
pay. You will be hit. Your three thousand will be replaced by others until you have a lot
of losses. You have to deal with your customers. We call them high risk, high rewards. If
you're brave enough to take a risk, you can win big. But if you're afraid, you won't take
the risk and won't give it to them. There's nothing you can do. If you gave them ten
thousand and they didn't pay you back, it's your fault because you didn't do your due
diligence. Your ten thousand is a huge loss, and you could have had 200 days with a daily
of 200, which is 5,000 a day or 4,800.
Interviewer: May instance po ba na nag reklamo yung collector na manual yung

ginagawa nila na recording.
Translation: Was there an instance where the collector complained about the manual
recording?
Client: Kis a kay kunwa ng ginatawag na di nila mapansin amo sina , ti balikan mo pa
tong iban na record na naka folder na 6 months ago kay overdue man ang customer may
bayad sya na 20 pesos, kay amoto ang wala nakita short nya to baynte, pangitaon nya
tong 20 sa kuan sa ila na DCR, kunware month of May, pangitaon nya gid didto sa
December na ti, te pangitaon nya gid didto sa May e ang iya na short.
Translation: Yes, there was an instance where they called their attention to it, and they
found out that the customer was overdue by 20 pesos. The collector failed to notice that
the customer had paid, and he was short by twenty. He looked for the 20 in the DCR
folder, but he couldn't find it in May, so he looked in December and found it there.
Interviewer: So, sa collection process sir, may instances po ba na nag reklamo po yung
customer nyo po na like for example nawala ung ledger nya tas nag provide po ng bago
na may record tapos sabi ng customer nag bayad ako ng ganito ganun.

Translation: So, in the collection process, do your customers ever complain that their
ledger is lost, and they provided a new one with records, and said they paid this and that?
Client: May amo gid sina nga problema, kis a problema gid na sa collector kay mali ila
pag record, pero kis a pakit an mo gid nga makita mo mana abi kung mag dugay kana ma
bal an mo gid kung naga tinikal sa wala sa customer, pero kung baguhanon ka palang di
mo ma bal an, mag dugay nga mag dugay ma kilala mo abi ang customer sa batasan nya
na tikalon siya nga amo sina, bal an mo gid kung naga tinikal sa wala. Daw maipit ang
collector kag auditor kay sila mang ga manage record sang borrower, pero ga kwan kami
kay syempre as supervisor be knowledgeable ka man sa mga customer nga gina kwaan
nya kung tikalon sya or hindi, amo gid na ang dapat.
Transation: We have a big problem with the collector because they record things
incorrectly. But the thing is, you really have to see it for yourself and experience it for a
long time to know if they are cheating the customer or not. If you're new, you won't know
right away. It takes time to get to know the customer's behavior and know if they are
being cheated or not. The collector and auditor are in a difficult position because they
manage the borrower's records, but as a supervisor, you should be knowledgeable about
the customers and know if they are being cheated or not. That's what's important.
Interviewer: Pero like may minus po ba sa sahod ng collector?

Translation: Is there a deduction in the collector's salary?
Client: Pag short lang, amuna. Pero kung mag baisanay sila, sila nana duwa mag settle
sining bais. Kung may ara sing history wala na namon gina renew kung naga tinikal ang
customer kay kaluoy ang collector, kay sigi pamahid sa iya na kulang.
Translation: Only when they fall short. But when they train, they both settle the training
cost. If there is a history of non-renewal because the customer complains about the
collector, we pity the collector, and we keep wiping their debt.
Interviewer: So ang process po ng pag audit nyo sir gina manual nyo na total lahat?

Translation: So the audit process is manual, and everything is recorded in the ledger?
Client: Oo manual, gina ano lang gid, gina tan aw sa computer kung pila balance nya
tapos tan awun ang dates sang bayad sang customer kag date sa passbook kung tama, te
wala sya sing. Pag sobra over, pag kulang short, short gid na sya.
Translation: Yes, it's all manual. We check the computer to see how much balance the
customer has and then check the payment dates and passbook dates to see if they match.
If there is an overpayment, it's considered an overpayment, and if there is a shortfall, it's
considered a shortfall.
Interviewer: Ini isa isa nyo yung ledger sa system.

Translation: So you go through each ledger entry manually in the system.
Client: Mano mano gid sya.
Translation: Yes, it's a manual process.
Interviewer: May problem po ba kayo sa application process niyo po?.

Translation: So you go through each ledger entry manually in the system.
Client: Ara, kis a ga reklamo na ang akon nga auditor nga kalain daw agi sang applicant,
te kis a hindi gid ma gets ang ila agi amuna mali mabutang sa passbook kag promissory
note.
Translation: Yes, it's a manual process.
Interviewer: Sige sir yon lang po yung mga questions, thank you so much po sir. Thank
you po sa time.
Translation: Alright, sir, those are all the questions I have. Thank you so much for your
time.


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Web-based Loan Management with Mobile QR Payment Collection System for

Three Fe's Appliance Emporium

A Capstone Project Proposal

Mhing Jhang T. Ang

Engr. Leila B. Guerrero, Ph.D

Accepted and approved by the Capstone Project Review Panel

Jufren B. Cervantes, MIT Mark C. Tres Reyes, MIT

Engr. Jessie M. Gayosa, MIT, MPA

Engr. Leila B. Guerrero, Ph.D Engr. Leila B. Guerrero, Ph.D

STI College Koronadal

STI College Koronadal

Figure No. Pages

STI College Koronadal

Table No. Pages

STI College Koronadal

The world is witnessing an era of tremendous technical improvement, with web

According to Carranto (2021), the benefits of implementing a loan management

STI College Koronadal 1

As the financial services industry evolves, lending institutions increasingly use

STI College Koronadal 2

STI College Koronadal 3

STI College Koronadal 4

Three Fe's Appliance Emporium faces significant challenges in efficiently

Unfortunately, the paper-based system's problems do not end there. The

STI College Koronadal 5

More problems emerged from the auditor's mistakes in encoding borrower

Continuing the discussion on problems Three Fe's Appliance Emporium faced,

STI College Koronadal 6

Purpose and Description of the Project

The Web-based Loan Management with Mobile QR Payment Collection System

1. Enable borrowers to fill out the loan application in a mobile application

2. Store and manage borrower information securely, including personal

3. Manage loan information of every Borrower, such as their loan amount,

4. Generate a promissory note based on the Borrower's loan application to

STI College Koronadal 7

5. Track loan repayments made by borrowers, including the amount paid,

6. Manage collectors responsible for collecting loan repayments from

7. Record repayments of the Borrower using QR technology, which allows

8. Authenticate applicants' income sources, ensuring financial capacity to

9. Generate various reports such as Loan Application Reports, Collection

STI College Koronadal 8

3. The Collectors of Three Fe's Appliance Emporium will benefit from

STI College Koronadal 9

The main objective of this study is to develop a Web-based Loan Management

This research proposal aims to achieve the following specific objectives:

1. To develop a web application to create the following Back-end modules for

a. Login module – allows users to access their accounts using their

b. Dashboard – provides a concise overview of loan data with key

c. Loan Management Module – manages loan transactions by overseeing

The module will have the following sub-modules:

STI College Koronadal 10

The module will generate the following reports:

i. Loan Application Summary Report – provides an

b. Loan approval module – manages loan applications,

c. Loan Disbursement module – users to approve loan

d. Collection module – lets users document remitted amounts by

STI College Koronadal 11

e. Borrower Information Module – manages and displays

This module includes the following report: