CHAPTER ONE
INTRODUCTION
Loan management has over the years been posing great problems to banks and other smaller financial institutions that embark on loan. One of the major bank services is loan disbursement. Loans are given to customers in order to help them embank on one project assignment or the other. Depending on the loans terms, the loan beneficiary pays back the loan on commission basis. Before a bank issues out a loan it follows a bank laid down criteria on loan disbursement. So many banks have fielded up due to problems associates with loan disbursement. This arises from the fact that the sxisting system used in loan monitoring is a failure. The system operates without adequate loan monitoring. There should be strictness in handling loan disbursement because; in many cases the capital involved is people money and not individual capital. This project work carriedout a detailed analysis into the problems making loan management unrealizable with a view to devicing acceptable computerized system, which will be more effective, accurate comprehensive, reliable and very easy to use. This, to a very large sentient, will help the generation banks to make their work procedure very enjoying and result oriented.
1.1 STATEMENT OF THE PROBLEM
Problems associated with loans are numerous, this makes the current system a very big failure record of loan beneficiaries are not well maintained and this makes banks to loose a lot of money. Interest-rates on loans are not calculated due to non-consistency in the format of calculation, data on loan repayment by installment are not always effectively administered due to the existing system on ground. On many occasions, loans are given to wrong people due to the fact that their oriteria for issuing loans are not followed the way it should be followed. There is no no-line method of entering and up-dating for effective records maintenance.
1.2 AIMS AND OBJECTIVES OF THE STUDY
This study is aimed at improving loan management with a view to making banks and the customers to both benefit mutually from the transaction. The research is carried out in order to provides accurate and timely report for effective decision making. This research will also provide adequate disbursement of loan between the beneficiaries are the bank and make calculations easily carried out. The study will produce timely up-dated status of a loan beneficiary. This research will come out with a well-defined computerized system, which will be very comprehensive, accurate, timely and cost effective.
1.3 IMPORTANCE OR SIGNIFICANCE OF THE STUDY
This research study is of great importance to the entire society. The society will benefit much from this study such that, it will help and make their disbursement with the bank more understood and well calculated. Because of how the system is well defined, people will benefit, whereby there will be no manipulations o miscalculations. Scholars in related field will benefit from the detailed contents of this reseaech work. It will help the bank a let in spending less in the area of loan control system or management.
1.4 SCOPE OF THE STUDY
The study focuses on the design and implementation of a computerized loan disbursement control system for the Union Bank of Nigeria Plc located at Garden Avenue Enugu.
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